Ch. 3

2007 Laws of Maryland

10-110.

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

(b)     (l) 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)     The Commission shall be composed of 17 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:

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