Ch. 2

2007 Laws of Maryland

Approved by the Governor, November 19, 2007.

CHAPTER 3

(Senate Bill 2)

AN ACT concerning

Tax Reform and-Transportation Investment Act of 2007

FOR the purpose of altering a provision relating to the calculation of the income tax
required to be withheld on wages; altering the rates and rate brackets under the
State income tax on individuals; altering the definition of "resident" under the
Maryland income tax: providing for the application of the income tax rates to
nonresidents; altering the amount allowed as a deduction for certain
exemptions under the Maryland income tax: altering the amount allowed as a
deduction for additional exemptions under the Maryland income tax for certain
individuals who as of the last day of the taxable year are blind or are at least a
certain age; certain exemptions under certain circumstances: altering the
calculation of the rate of tax that must be paid to the clerk of the circuit court
for a county or to the Department of Assessments and Taxation prior to the
recording of certain deeds for the sale of certain property; removing a certain
restriction on eligibility to claim a refundable earned income credit under
certain circumstances: altering the percentage of the federal earned income
credit used for determining the amount that certain individuals may claim as a
refundable credit under the Maryland earned income credit under certain
circumstances; altering eligibility for and the calculation of a refundable county
earned income credit if a county provides a refundable county earned income
credit; allowing certain individuals having income not exceeding certain levels a
credit against the State income tax in a certain amount; making the credit
refundable under certain circumstances; imposing a State admissions and
amusement tax on the gross receipts not proceeds derived from the operation of
certain bingo games and tip jars: providing for the distribution of certain
admissions and amusement tax revenue: altering the maximum rate of the
admissions and amusement tax that a county or municipal corporation may set

for gross receipts that are also subject to the State sales and use tax; altering

the rate of the sales and use tax; altering the percentage of gross receipts from
vending machine sales to which the sales and use tax rate applies; altering the
calculation of imposing a certain limit on a certain credit relating to collecting
and paying the sales and use tax; requiring that the Client Protection Fund of
the Bar of Maryland impose certain tax clearance requirements on lawyers
relating to the payment of certain annual fees: establishing a Chesapeake Bay

- 48 -