Tax, Toll, & Fee Increases – The Beat Goes On…
May 31, 2012
Filed Under: Press Releases

2012 Special Session

State and Local Revenue and Financing Act of 2012 - $299.8 million

  • Limiting Personal Exemptions on Individual Income Taxes ($51.7 million)
  • Bracket and rate changes to income taxes ($195.6 million)
  • Modifying income determination on small business trusts (effective tax year 2013)
  • Eliminating telecommunication property tax credits on corporate income tax ($9.6 million)
  • Eliminate sales tax exemption on cylinder demurrage ($700K)
  • Increase tax rate on other tobacco products ($5 million)
  • Double fee for death certificates from $12 to $24 ($700K)
  • Increase fee to appeal driver’s license suspension ($500K)
  • Apply recordation tax to indemnity mortgages ($35.7 million)

2012 Regular Session

Budget

  • Fee Increases in FY 13 Budget
  • 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)
    • Abortion Surgical Centers – $1500 (new fee)
  • 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)
    • Food Control Fees:
      • Plan Reviews - $400
  • Newborn Screen Fee – 43% increase (from $70 to $100)

Other Tax/Fee Bills

HB 446– Environment – Bay Restoration Fund – Fees (Administration) =$55 Million

  • Doubles Flush Tax for Septic Users from $30 to $60 per year.
  • Fund is not protected from future raids.
  • Exempts areas outside of Chesapeake Bay Watershed (areas in Garrett and Lower Shore)

HB 1087 – Telecommunications Companies – Universal Service Trust Fund – Surcharge (Hixson/Davis) - $1.6 million

  • Expands Universal Service Trust Fund (USTF) surcharge to all telecommunications services in the state.
  • Current surcharge is $0.18/month but can be as high as $0.45 per month.
  • Previously, USTF charge only applied to landlines
  • $12 million of this special fund’s fund balance has been siphoned off in BRFA’s over the last 3 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 – Increases sales tax on alcohol 50% from 6% to 9%

SB 994

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%)
  • 16% Income Tax Increase on Incomes over $500,000 (4.75% to 5.5%)