CPA Resources
CPA Resources

Comptroller offers summary of 'productive' legislative session

ANNAPOLIS, April 10, 2008 -- Comptroller Peter Franchot has expressed satisfaction for a productive and successful 2008 legislative session.

Most of the comptroller's top legislative priorities, including approval and funding for an innovative new tax compliance program, the repeal of the computer services tax, the passing of the Maryland Tax Preparers Act, crucial corporate income tax reform and legislation providing critical rights to domestic partners all passed through the General Assembly this year.

"We proved this session that you can be independent, think for yourself and still get things done through hard work and persistence," Franchot said. "I am very proud of the work this agency has done, both on our own and in partnership with the governor and the General Assembly. I am especially proud of the role we played in supporting Maryland's knowledge-based economy by repealing the computer services tax, and in protecting Marylanders from unscrupulous and unqualified tax preparers with the Maryland Tax Preparers Act."

Highlights of the Comptroller's 2008 legislative and budgetary accomplishments include the following:

  • Tax Fairness Initiative: Twenty-two new positions were approved as part of a comprehensive investment in technology and personnel that will enhance the tax compliance efforts of the Comptroller's Office. Over the first four years of implementation, the plan will bring an additional $200 million in revenue, and then subsequently yield $80 million to $100 million annually after that.
  • Repeal of the computer services tax: As the earliest and most consistent advocate of repealing this tax, the comptroller was involved in the formation of the industry alliance that opposed the tax and worked from the very beginning to convince other state leaders that this tax was an attack on Maryland's knowledge-based economy and posed a threat to its hard-earned business reputation.
  • Maryland Tax Preparers Act: A pro-consumer measure that would help protect taxpayers against unscrupulous tax preparers and give the state a method of tracking problem preparers. It also helps protect taxpayers from fraudulent and misleading marketing schemes that target the most vulnerable taxpayers in our state.
  • Corporate income tax reform: Strengthened corporate tax compliance and enforcement efforts through the adoption of a streamlined "combined reporting" income tax return. This effort will provide critical information for lawmakers in determining whether to adopt a combined reporting law in the future.
  • Cigarette business licenses: Ensuring that applicants for cigarette business licenses and licensees buy cigarettes from a licensed manufacturer to help ensure compliance with the state's tobacco regulations.
  • Enhanced opportunities for minority brokerage firms: A strong advocate for the state's women and minority owned businesses, the comptroller supported legislation requiring state agencies responsible for the management of funds to attempt to use minority business enterprise brokerage and investment management services firms and requiring the entities to adopt specified guidelines and to submit an annual report updating their use of minority firms.
  • Iran divestiture: As vice chair of the state's Retirement System, the comptroller supported legislation requiring the Board of Trustees for the State Retirement and Pension System to review specified investment holdings to determine the extent to which funds are invested in companies doing business in Iran or Sudan and requiring the Board of Trustees to take divestment action.
  • Recordation and transfer taxes: Exempts from recordation tax and state and county transfer taxes instruments of writing transferring property between domestic partners and former domestic partners, a priority of Equality Maryland and the comptroller's office.
  • Kids First Act: Authorizes the comptroller to send a notice regarding eligibility for the Maryland Medical Assistance Program or the Maryland Children's Health Program to a taxpayer with a dependent child, if income reported on the income tax return does not exceed a specified amount.
  • College Savings Plans of Maryland: As a board member of the College Savings Plans of Maryland (CSPM), the comptroller supported the effort authorizing the College Savings Plans of Maryland Board to establish the Maryland Broker-Dealer College Investment Plan. This broker sold plan will allow authorized private brokers to sell enrollments in the Maryland College Investment Plan, which will substantially increase public participation in the program and ensure that more families are financially prepared for the costs of higher education.
  • Statewide phase-out of electronic gaming devices: While not going far enough and outlawing gaming devices in the entire state, this bill does attack the proliferation of electronic gaming machines in Southern Maryland.