Tax, Toll, & Fee Increases Proposed by the Governor’s Administration – The Beat Goes On
February 2, 2012
Filed Under: News

2012 Regular Session

$976 Million+

Budget/BRFA

  • Taxes and Fee Increases in FY 13 Budget/BRFA (As Proposed)

    • TAXES = $287.4 Million
      • “Thousandaires Tax”
        • Limiting Itemized Deductions on individuals making over $100K and couples making over $150K: $119.1 Million+
        • Limiting Personal Exemptions on individuals making over $100K and couples making over $150K: $63.2 Million+
      • Repeal Income Tax Credit Telecommunications Property Tax: $9 Million
      • Requiring the collection of Recordation Taxes on Indemnity Mortgages: $40 Million
      • Repeal Maryland-mined Coal Credit: $6 Million
      • “Amazon Tax” - $21 Million
        • Requires the collection of sales tax on internet affiliate sites like Amazon.
      • Tobacco Products Tax 70% Increase: $19 Million
      • “App Tax” - $5 Million
        • Imposes sales tax on digital products like Apps, ITunes, and Kindle Downloads
      • Repeal Sales Tax Exemptions –
        • Eliminate exemption on precious metal coins and bullion - $3 Million
        • Eliminate exemption on the resale of manufactured homes - $1.4 Million
        • Eliminate exemption for cylinder demurrage - $700K
           
    •  FEES = $5.26 Million
      • INCREASES
        • Ofc. Of Administrative Hearings:
          • Appeals of Driver’s License Suspensions and Revocations – 21% increase (from $124 to $150)
        • Death Certificates - 100% increase (from $12 to $24)
          • Amendments to Death Certificates after one year - 100% increase (from $12 to $24)
        • Fetal Death Certificates – 100% increase (from $12 to $24)
          • Additional copies – 100% increase (from $12 to $24)
          • Amendments to Fetal Death Certificates after one year – 100% increase (from $12 to $24)
        • Certificate of Birth Resulting in Still Birth – 100% increase (from $12 to $24)
        • Marriage Certificates - 100% increase (from $12 to $24)
        • Fees For Processing:
          • Legitimations – 100% increase (from $12 to $24)
          • Domestic Adoptions – 100% increase (from $12 to $24)
          • Foreign Adoptions – 100% increase (from $12 to $24)
        • Office of Health Care Quality Fees
          • Ambulatory Surgical Centers – 471% increase (from $700 to $4000)
          • Residential Service Agencies – 100% increase (from $500 to $1000)
          • Assisted Living – 567% increase (from $150 to $1000)
          • Laboratories – 200% increase (from $100 to $300)
        • Food Control Fees (applicable to all food processing operations in the state, shellfish processing, food manufacturing, etc.)
          • Processing Facilities – 167% increase (From $150 to $400)
        • Newborn Screen Fee – 29% increase (from $70 to $90)
           
    •  NEW FEES
      • Processing of Delayed Births: $24
      • Office of Health Care Quality Fees
        • Abortion Surgical Centers – $1500
        • Developmental Disabilities – $250
      • Community Service Fees (public swimming poll construction permits) – $400
      • Food Control Fees:
        • Plan Reviews - $400

Other Tax/Fee Bills

  • SB 240 – Environment – Bay Restoration Fund – Fees = $ 70 Million (assumes a doubling)

    • Doubles Flush Tax for Septic Users from $30 to $60 per year
    • Sewer Users Tax Based on Usage:
      • $0.90 per 1,000 gallons for the first 2,000 gallons
      • $1.25 per 1,000 gallons thereafter
      • Under this scenario, a family of four with average daily water usage of 70 gallons per person (8,400 gallons/month) could see their Flush Tax QUADRUPLE from $30 per year to $118 per year.
         

  •  Yet to be released Transportation Package = $613 Million (still very sketchy, details from media reports)

    • Expand 6% sales tax to gasoline through phase-in 2% a year over 3 years
    • Would add 21cents per gallon with current gas prices.
    • Applied at wholesale level and built into price
    • Includes “capping mechanism” to limit the amount of the tax increase if prices spike
      • Administration still working out the details on capping mechanism

Still floating out there in the ether… Recommendations from Blue Ribbon Commission on Transportation Funding…

    • 64% increase in the gas tax over three years (from 23.5¢ to 38.5¢) expanding sales tax instead
    • 100% increase in emission inspection fees (from $14 to $28)
    • 50% increase in vehicle registration fees (from $50.50 to $75.75) off the table according to Abbruzzese
    • 8% increase in vehicle titling tax (from 6% to 6.5%) or elimination of trade-in allowances
       

  •  SB 237 – Maryland Offshore Wind Energy Act of 2012

    • Tacks on up to $2 per month to electric bills
    • Could cost over $2 billion over the next 20 years

Lest we forget…the previous tax, fee, and toll hikes over the O’Malley years…

2011 Toll Increases

“…largest package of toll increases in the state’s history…” Baltimore Sun, 9/22/11

  •  Key Bridge/Fort McHenry Tunnel/ Harbor Tunnel
    • 50% increase from $2 both ways to $3 both ways effective November 1
    • 33% increase from $3 both ways to $4 both ways effective July 1, 2013
    • Total increase 100% from 2011 to 2013.
  •  JFK Memorial Highway Section of I-95/Thomas J. Hatem Memorial Bridge
    • 33% increase from $6 to $8 effective July 1, 2013
  • Bay Bridge
    • 60% increase from $2.50 to $4 effective November 1
    • 50% increase from $4 to $6 effective July 1, 2013
    • Total increase 140% from 2011 to 2013
  • Harry W. Nice Bridge
    • 33% increase from $3 to $4 effective November 1.
    • 50% increase from $4 to $6 effective July 1, 2013
    • Total increase 100% from 2011 to 2013

 

Tax and Fee Increases – 2011 Regular Session

Budget/BRFA

  • Taxes and Fees Increases in the FY 2012 Budget/BRFA
    • Vehicle Titling Tax doubled $50 to $100
    • Vanity Plate Fee doubled from $25 to $50
    • Land Recording Fees – doubled $20 to $40
    • Birth Certificate Fees – doubled from $12 to $24
    • Increase in Hospital Assessments adding 2.5% to rates
    • Increasing Nursing Home Tax from 4% to 5.5%
    • Parole Supervision Fee – doubled from $25 to $50
       
  • New Taxes and Fees in the FY 2012 Budget/BRFA
    • 2% Premium Tax on the Injured Worker Insurance Fund (IWIF)
    • Payroll Garnishment Fee for State Employees
    • Maryland Higher Education Commission Program Approval Fee

Other Bills With Tax and Fee Increases from 2011 Session

  • HB 1196 – Increases the maximum fee imposed by Maryland Historical Trust from 1% to 3%.
  • HB 362 – Increases Licensing Fees for the Home Improvement Commission by $25 for each type of license and a new $20 fee for all initial applications.
  • HB 1213 / SB 994 – Increases sales tax on alcohol 50% from 6% to 9%
  • HB 195 – Increases the licensure fee for a secondhand precious metal object dealer or pawnbroker from $75 to $300
  • HB 1022 – Establishes a registration and renewal fee of $1,000 for Debt Settlement Services
  • HB 881 – Establishes an application fee of $100 and a $100 per vehicle registration fee for transporting waste kitchen grease.
  • HB 523 – Requires the State Court Administrator to assess a $100 fee for the special admission of an out-of-state attorney.

 

Remembering When… The 2007 Special Session

The Largest Tax Increase In Maryland’s History (so far anyway)

  •  20% Increase in the Sales and Use Tax (From 5% to 6%)
    • Also included an expansion to Computer Service which was repealed in the ’08 regular session and replaced with the “Millionaire’s Tax”, a 6.25% tax rate on incomes over $1 million. The “Millionaire’s Tax” sunsetted on December 31, 2010.
  • 18 % Increase in the Corporate Income Tax (From 7% to 8.25%)
  • 20% Increase in Vehicle Excise Tax
  • 117% Increase In Vehicle Titling Fee
  • 100% Increase in Cigarette Tax
  • 5% Income Tax Increase on Incomes over $150,000 (4.75% to 5%)
  • 11% Income Tax Increase on Incomes over $300,000 (4.75% to 5.25%)