Weekly Round-Up: Comptroller Explains Why a Move Towards Combined Reporting Is Unlikely in Maryland [Free Access to BNA Premium Content]

The appointment of David Roose, who is familiar to big corporate taxpayers because of his work on revenue estimating, as the new Deputy Comptroller is not an indication that the state is moving towards combined reporting , Peter Franchot, Comptroller of Maryland, told Walt Nagel, Don Griswold, and Jeremy Abrams, all with Crowell and Moring's state tax team. Franchot's comments were part of a larger interview in which he spoke candidly about current tax issues facing the state, including internet taxation and remote sellers. [full text of interview available here].

I would be stunned if the Legislature moved forward with combined reporting, Franchot said. He explained that while combined reporting is well intentioned, it would be destabilizing to the state's business reputation and, as Roose's studies show, it is very schizophrenic as far as the revenue that it generates. Some years, it does produce revenue and other years, the state would lose revenue, he said. "And so I often say to anyone lobbying on this issue, if they run into a legislator that supports combined reporting, ask them whether they support the Finnegan or the Joyce method. That tends to quiet them down pretty quickly!"

Franchot explained that while combined reporting is kind of a cause célèbre with some factions in the Legislature, in the midst of a weak economic recovery and after the steady series of tax and fee increases, it would be really bad timing for businesses and the economy. In a nutshell, it has questionable benefits and carries significant risk, Franchot said.

In other developments…

State Tax Quarterly Insights , by PwC.

States Rack Up Victories in Bids to Collect Online Sales Taxes , by Stateline, The Daily News Service of The Pew Charitable Trusts.

Tax Foundation Figures Do Not Represent Typical Households' Tax Burdens , according to the Center on Budget and Policy Priorities.

Compiled by Priya D. Nair
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