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Martin O'Malley, Governor
Ch. 3
(1) estimated tax payments for an individual or a corporation for the
taxable year shall reflect the revised income tax rates under § 10-105(a) and (b) of the
Tax - General Article as enacted under Sections 1 and 4 of this Act; and
(2) notwithstanding §§ 13-602 and 13-702 of the Tax - General
Article, the Comptroller shall assess interest and penalties under §§ 13-602 and
13-702 of the Tax - General Article:
(i) if an individual pays estimated income tax for the taxable
year in an amount that is:
1. less than 90% of the tax required to be shown on the
return for the current taxable year; and
2. less than 135% 120% of the tax paid for the prior
taxable year, reduced by the credit allowed under § 10-703 of the Tax - General
Article; or
(ii) if a corporation pays estimated income tax for the taxable
year in an amount that is:
1. less than 90% of the tax required to be shown on the
return for the current taxable year; and
2. less than 125% 130% of the tax paid for the prior
taxable year.
SECTION 8. 12. AND BE IT FURTHER ENACTED, That the Comptroller shall
adopt regulations that will exempt from the increase in the rate of the sales and use
tax under § 11-104 of the Tax - General Article as enacted by Section 2 of this Act any
otherwise taxable sales of tangible personal property to contractors or builders to be
used for the construction, repair, or alteration of real property, on contracts entered
into prior to the effective date of the sales and use tax increase under § 11-104 of the
Tax General Article as enacted by Section 2 of this Act. The exemption may be in the
form of a refund, credit, or, to the extent practicable, deduction at the time of sale. The
regulations shall be applicable only with respect to the 1% increase in the rate of the
sales and use tax which becomes effective January 3, 2008.
SECTION 9. AND BE IT FURTHER ENACTED, That, on or before December 1,
2009, and December 1, 2011, the Comptroller shall report to the Governor and, subject
to § 2-1246 of the State Government Article, the General Assembly, on the
implementation of the imposition of the sales and use tax on the sale of computer
services, as provided for under this Act, and the impact on sales and use tax revenues
as a result of the imposition of the sales and use tax on the sale of computer services.
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