2007 Special Session

2007 Special Session Taxes & Spending

 2007 SPECIAL SESSION NEW TAXES
($ in Millions)
                                                                       
                                                                                                                        Increase  
Motor Vehicle Title Registration Fee-HB5                      $23 to $50                    120%              
 
Car Titling Tax-HB5                                                            5¢ to 6¢                       20%               
 
Cigarette Tax-  HB2                                                           $1 to $2                       100%              
 
Retail Sales Tax-HB2                                                        5¢ to 6¢                         20%               
 
*Expansion of sales tax to computer services-SB2                                                       
 
State Corporate Income Tax-   SB2                                 7% to 8.25%                  18%    

Electronic Bingo & Tip Jar Amusements-HB2               20% tax on net receipts           
New Transfer Tax on Real Estate Transfers-SB2                                                         
(through sale “controlling interest)
 
Personal Income Tax Brackets Revised–SB2                                                               
Single, Depend Filer, Married Filing                      Joint, Head of Household, Widower
Rate                 MD Taxable Income                             Rate                 MD Taxable Income
2.00%              $1 - $1,000                                         2.00%              $1 - $1,000
3.00%              $1,001 - $2,000                                  3.00%              $1,001 - $2,000
4.00%              $2,001 - $3,000                                  4.00%              $2,001 - $3,000
4.75%              $3,001 - $150,000                              4.75%              $3,001 - $200,000
5.00%              $150,001 - $300,000                          5.00%              $200,001 - $350,000
5.25%              $300,001 - $500,000                          5.25%              $350,001 - $500,000
5.50%              Excess of $500,000                           5.50%              Excess of $500,000      
                                                                                                            
 


* Repealed in the 2008 Regular Session and replaced by a new law that imposes a temporary surcharge in tax years 2008 through 2010 of 6.25% on the amount of taxable personal income that exceeds $1 million.  Known as the “Millionaire’s Tax”                                   
 
 
 
 
2007 SPECIAL SESSION NEW SPENDING PROGRAMS
($ in Millions)
 
                                                                                                           
Geographic Education Cost Index (GCEI)                                           $38     
 
Health Care Expansion Program-SB6                                                 $77
 
Chesapeake Bay Fund-HB5                                                                 $50                 
 
Higher Education Investment Fund                                                       $55
 
Helicopter Replacement Fund-HB5                                                      $33
 
Prince George’s County Hospital – SB6                                              $20