Maryland Senate Bill SB766

Maryland 2024 Regular Session

• Introduced: 2/1/24
• Refer: 2/1/24

Caption

Fair Share for Maryland Act of 2024

Impact

Additionally, SB766 modifies the Maryland income tax structure by introducing a higher state tax rate on net capital gains, adding an additional income tax rate of 1% on net capital gains for individuals. The legislation also details how corporations, particularly those engaged in manufacturing, should compute their taxable income, incorporating a single sales factor for apportionment. This change aligns Maryland's tax policy with broader trends aiming to adjust corporate tax burdens while also expanding tax credits aimed at lower-income individuals.

Summary

Senate Bill 766, known as the Fair Share for Maryland Act of 2024, proposes significant changes to Maryland's estate and income taxation framework. The bill aims to adjust the unified credit limits applicable to the estate tax for decedents who die on or after January 1, 2025. It will establish a new exemption limit of $2,000,000 while removing previous provisions tied to increases that followed federal estate tax changes. This shift is tailored to ensure that the Maryland estate tax remains robust despite federal reforms.

Contention

Notable points of contention surrounding the bill revolve around its effects on wealth distribution and tax fairness. While proponents argue that these adjustments are necessary for fiscal balance and to cater to lower and middle-income populations, critics argue that increasing tax burdens on capital gains could discourage investment. Moreover, there is concern over how expanding the estate tax might impact families, particularly those with modest estates, as it may strip them of assets intended for heirs. Overall, SB766 aims to address fiscal challenges while influencing how wealth is managed within Maryland.