WILLIAM DONALD SCHAEFER, Governor

Ch. 748

CHAPTER 748
(House Bill 242)

AN ACT concerning

Sales and Use Tax - Credit for Collection Expense

FOR the purpose of altering the calculation of a certain credit allowed to a person who
timely files a sales and use tax return; requiring the Comptroller to make a certain
annual adjustment in the calculation of the credit based on the Consumer Price
Index providing for the effective date of this Act; and generally relating to a certain
credit allowed to a person who timely files a sales and use tax return.

BY repealing and reenacting, with amendments,
Article - Tax - General
Section 11-105

Annotated Code of Maryland
(1988 Volume and 1993 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Tax - General

11-105.

(a)      Except as provided in subsection (b) of this section, a person who timely files
a sales and use tax return is allowed, for the expense of collecting and paying the tax, a
credit equal to [0.6%] 0.9% of the gross amount of sales and use tax that the person is to
pay to the Comptroller.

(b)      (1) Subject to paragraph (2) of this subsection AND SUBSECTION (C) OF
THIS SECTION, the credit allowed under this section is 1.2% of the first [$4,200] $6,000 of
the gross amount of sales and use tax that the person is to pay with each return.

(2)      For a vendor who files or is eligible to file a consolidated return under §
11-502 of this title, the credit allowed under paragraph (1) of this subsection is 1.2% of
the first [$4,200] $6,000 of the gross amount of sales and use tax that the person is or
would be required to pay with the consolidated return.

(C) (1) IN THIS SUBSECTION, "CONSUMER PRICE INDEX" MEANS THE

CONSUMER PRICE INDEX (ALL ITEMS - UNITED STATES CITY AVERAGE), AS

PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF
STATISTICS.

(2)      FOR THE FISCAL YEAR BEGINNING JULY 1, 1995 AND EACH
SUBSEQUENT FISCAL YEAR, ON OR BEFORE JUNE 15 IMMEDIATELY PRECEDING THE
FISCAL YEAR, THE COMPTROLLER SHALL INCREASE THE MAXIMUM DOLLAR

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