To help close a state budget deficit, Governor Martin O’Malley issued Executive Order 01.01.2012.10 on May 9, 2012, calling for a special session of the General Assembly “for the purpose of passing legislation to address Maryland’s fiscal year 2013 budget.”
The General Assembly subsequently convened a three-day special session resulting in the passage of the State and Local Revenue and Financing Act of 2012 (Revenue Act), the Budget Reconciliation and Financing Act of 2012 (Budget Act), and the Qualified Zone Academy Bonds (Bond Act).
Under the Revenue Act, Maryland income tax rates are retroactively increased as of January 1, 2012, personal exemptions are retroactively phased out effective January 1, 2012, certain tobacco taxes are increased effective July 1, 2012, recordation taxes are imposed on certain indemnity deeds of trust effective July 1, 2012, and one sales and use tax exemption was eliminated effective July 1, 2012.
The largest impact to most Marylanders will be the increase in individual income tax rates and reduction of personal exemptions. Learn more about this legislation’s impact on Maryland residents by clicking “download attachment” below to read Glenn Anderson’s complete article.
Glenn Anderson leads Miller, Miller & Canby’s Business & Tax Practice and Estates and Trusts Practice, assisting clients in all aspects of business law, tax advocacy and estates and trusts planning. As an MBA, CPA and attorney, Glenn has developed a recognized expertise in taxation law. Tap into this expertise by contacting Glenn Anderson.