Signed by Governor Martin O'Malley

Vote Smart's Synopsis:

Vote to pass a bill that repeals the six percent sales tax on certain computer services and establishes a higher income tax bracket for taxpayers with incomes in excess of $1 million.

Highlights:

- Exempts from sales tax custom computer services and programs that are designed to be used by a specific person and not mass produced for use by the general public or persons using it in their trade, profession, or industry [sec. 2 (11-219) (b)]. - Establishes the following income tax brackets for taxpayers with incomes in excess of $500,000 for the years 2007 through 2010 [sec. 2 (10-105) (a) (3) (II)]:

- 5.5 percent of taxable income of $500,001 through $1,000,000 (unchanged); and - 6.25 percent of taxable income in excess of $1,000,000.

- Requires the Comptroller to appropriate the following percentage of total sales tax revenue into the Transportation Fund after making certain appropriations [sec. 1 (2-1302) (2)]:

- 5.3 percent for each fiscal year before July 1, 2013 (down from 6.5 percent); and - 6.5 percent for each fiscal year beginning on or after July 1, 2013.

- Specifies that it is the intent of the legislature that the Governor reduce expenditures to the Board of Public Works by $50 million for fiscal year 2009 (Sec. 5).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that repeals the six percent sales tax on certain computer services and establishes a higher income tax bracket for taxpayers with incomes in excess of $1 million.

Highlights:

- Exempts from sales tax custom computer services and programs that are designed to be used by a specific person and not mass produced for use by the general public or persons using it in their trade, profession, or industry [sec. 2 (11-219) (b)]. - Establishes the following income tax brackets for taxpayers with incomes in excess of $500,000 for the years 2007 through 2010 [sec. 2 (10-105) (a) (3) (II)]:

- 5.5 percent of taxable income of $500,001 through $1,000,000 (unchanged); and - 6.25 percent of taxable income in excess of $1,000,000.

- Requires the Comptroller to appropriate the following percentage of total sales tax revenue into the Transportation Fund after making certain appropriations [sec. 1 (2-1302) (2)]:

- 5.3 percent for each fiscal year before July 1, 2013 (down from 6.5 percent); and - 6.5 percent for each fiscal year beginning on or after July 1, 2013.

- Specifies that it is the intent of the legislature that the Governor reduce expenditures to the Board of Public Works by $50 million for fiscal year 2009 (Sec. 5).

Full Bill Text