Archive: maryland tax

CARES Act Triggers Maryland’s Automatic Decoupling

On June 12, 2020, the Maryland Comptroller issued its report to the Governor and General Assembly regarding the impact of certain tax provisions included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act on Maryland Tax Revenues.  The report outlines Maryland’s required decoupling from the following three provisions of the CARES Act: IRC section […]
July 16, 2020

Maryland Expands Pass-through Entity Tax to Circumvent Federal SALT Limitation

Maryland has become the most recent state to adopt a workaround to the federal $10,000 state and local tax (SALT) deduction limitation. On May 7, 2020, Senate Bill 523 became law, making Maryland one of a handful of other states, including Connecticut, New Jersey, and Wisconsin, attempting to circumvent the SALT limitation implemented by the […]
May 26, 2020

Maryland Comptroller Clarifies GILTI Treatment

On April 17, 2019, the Comptroller of Maryland issued a Tax Alert to provide guidance to taxpayers on the state’s taxation of global intangible low-taxed income (GILTI), a new category of foreign earnings subject to federal income tax as a result of provision enacted by The Tax Cuts and Jobs Act (TCJA). The Tax Alert […]
April 30, 2019

Maryland Comptroller Issues Guidance on Approved Wayfair Regulations

The Maryland Comptroller has issued a tax alert instructing out-of-state vendors on how to apply recently approved regulations regarding sales tax collection obligations for out-of-state sellers. The guidance includes helpful information on how to apply the regulation’s $100,000 sales threshold and addresses timing issues related to complying with the new rule. Maryland’s regulation is in […]
September 18, 2018

Maryland Tax Alert: Comptroller Submits Draft Emergency Regulations in Response to Wayfair

On August 2, 2018, the Maryland Comptroller submitted a proposed emergency regulation to the General Assembly that would permit the Comptroller to require remote sellers with no physical presence in the state to collect Maryland sales tax on in-state sales. The proposed emergency regulations come in response to the U.S. Supreme Court’s recent ruling in […]
August 10, 2018

Montgomery County Allows Residents to Prepay Their 2018 Property Taxes

The Montgomery County Council has enacted a bill, Expedited Bill 42-17, to allow residents to prepay their 2018 County property taxes before the end of 2017. The Council acted quickly in response to recently enacted federal income tax reform, which will limit a taxpayer’s deduction for all types of state and local taxes to $10,000. Prepaying […]
December 26, 2017

Market-Based Sourcing: Not Just a Trend

The shift to market-based sourcing is more than just a trend in state income tax. More than 20 states have adopted this method for the sourcing of services, with a handful of others poised to follow suit. Recently, both Missouri and Tennessee adopted market-based sourcing. Further, most states with major economic hubs are now sourcing […]
June 3, 2015

The State Should “Wynne,” Says U.S. Solicitor General

It’s looking more and more likely that the U.S. Supreme Court will review the “credit for taxes paid” decision of the Maryland Court of Appeals’ in Wynne v. Comptroller (431 Md. 147, 64 A.3d 453, 01/28/2013). The Maryland court held that the state’s resident credit for taxes paid to other states was unconstitutionally discriminatory under the Commerce […]
April 14, 2014