The scoop on Maryland's new tax law

Photo by rachaelvoorhees

If you've been following our sister blog, Legislative Insider (or haven't been living under a rock), you know that Maryland's General Assembly has enacted $1.4 billion in new taxes in an effort to fix the state's budget shortfall.

There are a ton of resources that provide details about the new law. Here are some of our favorites:

• Maryland Comptroller summary of 2008 tax changes
• MACPA recaps, courtesy of Legislative Insider
• Summary from the Department of Legislative Services
• Summary from the Maryland Chamber of Commerce
• Corporate reporting requirements: A summary from Sutherland Asbill and Brennan

Finally, if you'd rather listen to a summary of the special session, check out this MACPA podcast. Executive Director Tom Hood offers a recap of the legislation and looks ahead to the General Assembly's 2008 session.

What are your initial reactions to the new tax law?

Comments

[Diana Moneymaker]

Yes, more taxes for the people, so that the government can spend even more money on stupid things.

Ron Paul 2008!

-Diana Moneymaker

[Sandra Scott]

Is the following true:
IMPORTANT MESSAGE FOR MARYLAND (MD) RESIDENTS -New State Tax Withholding Requirements

The State of Maryland has changed to a state tax table that now incorporates an employee's marital status. Unless you are
currently claiming SINGLE with zero exemptions, you MUST update your MD state tax withholding to reflect your marital status and the proper number of exemptions prior to May 3, 2008. You can do so via the Employee Personal Page (EPP), Self Service option beginning April 21, 2008, or by filing the new form MW-507, Employee's Maryland Withholding Exemption Certificate with your servicing
Human Resources office. The EPP was updated on April 21, 2008, to allow the entry of the updated withholding information. This change will be effective for Pay Period 09, 2008.

If you are a MD resident with MD state tax withholding and you do not update your withholding status prior to May 3rd, it willresult in a default change in MD tax withholding to SINGLE with 0 (zero) exemptions (the highest withholding rate) for Pay Period 09, pay date 5/22/2008.

You must update your MD state tax withholding no later than May 2nd (either via the EPP or by submitting a signed, original MW-507 to Judy Rice, Room VS-D-3149) to ensure that the new withholding will be effective for pay period 9.

Use the following link for the Employee Personal Page (EPP):

https://www.nfc.usda.gov/

Use the following link for the MW-507 form:

http://forms.marylandtaxes.com/08_forms/mw507.pdf