§ 10-110. Maryland Business Tax Reform Commission.

   (a) Established. -- There is a Maryland Business Tax Reform Commission.

(b) Duties. --

   (1) The Commission shall review and evaluate the State's current business tax structure and make specific recommendations for changes to the State's business tax structure to provide for fair and equitable taxation for all corporations and other business entities doing business in the State.

   (2) The Commission's recommendations may include, without limitation, changes such as tax rate changes, tax base broadening measures, measures to address tax avoidance strategies, and elimination of ineffective or inefficient tax policies intended as economic development incentives.

   (3) The Commission's study shall include, at a minimum, a review and evaluation of the following options for business tax reform:

      (i) the imposition of combined reporting using the "water's edge method" under the corporate income tax for unitary groups of affiliated corporations;

      (ii) the imposition of other types of business taxes, in lieu of or in addition to the current taxes imposed, including gross receipts taxes, value added taxes, and alternative minimum taxes; and

      (iii) improved methods for evaluation of the effectiveness and efficiency of tax policies intended as economic development incentives.

(c) Membership. -- The Commission shall be composed of 19 members, as follows:

   (1) a chair, appointed by the Governor;

   (2) three members of the Senate Budget and Taxation Committee, appointed by the President of the Senate;

   (3) three members of the House Committee on Ways and Means, appointed by the Speaker of the House;

   (4) the Comptroller of the Treasury, or the Comptroller's designee;

   (5) the Secretary of Business and Economic Development, or the Secretary's designee;

   (6) the Secretary of Budget and Management, or the Secretary's designee;

   (7) the Director of the State Department of Assessments and Taxation, or the Director's designee;

   (8) a representative of the Maryland Association of Counties;

   (9) a representative of the Maryland Municipal League;

   (10) a representative of the Maryland Chamber of Commerce;

   (11) a representative of the Greater Baltimore Committee;

   (12) a representative of an organization that represents Maryland manufacturers, appointed by the Governor; and

   (13) three members of the public, each of whom shall be an attorney at law or an accountant knowledgeable about the State's business tax structure, appointed by the Governor.

(d) Staff. -- The Comptroller and the Department of Budget and Management shall provide staff support to the Commission.

(e) Compensation and reimbursement for expenses. -- A member of the Commission:

   (1) may not receive compensation; but

   (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

(f) Report. -- On or before December 15, 2010, the Commission shall submit a final report of its findings and recommendations to the Governor and, in accordance with § 2-1246 of the State Government Article, to the General Assembly.

HISTORY: 2007 Sp. Sess., ch. 3, § 5; 2008, chs. 177, 178; 2010, ch. 543.