Legislative Initiatives

Working for Taxpayer Fairness and Convenience

Recognizing the extraordinary benefits of e-filing to both the State and its taxpayers, Comptroller Franchot developed legislation that will require all tax preparers who prepare 300 or more returns to file electronically beginning in Tax Year 2009. After that initial year's phase in, the number drops to any paid preparer who prepares 200 or more returns in 2010 and 100 or more thereafter. This will save the State of Maryland millions of dollars in processing costs, ensure greater accuracy and privacy in the tax filing process, and accelerate the distribution of refund checks.

In an effort to make the tax filing process as convenient and user-friendly as possible, Comptroller Franchot supported successful legislation (HB 883lSB 698) that will allow taxpayers to deposit refund checks into at least two bank accounts.

The Comptroller strongly supported Senate Bill 44, which will extend the current sales and use tax exemption for veterans' organizations for an additional three years.

In a response to the largest case of investor fraud in U.S. history, Comptroller Franchot's office developed legislation that would have enabled victims of the Bernard Madoff Ponzi scheme to gain a measure of financial relief. Senate Bill 1069 would have reflected recent changes in the federal tax code by allowing investors to claim a theft-loss deduction equal to 95 percent of their investments.

Comptroller Franchot supported Senate Bill 785, which will extend the State's existing inheritance tax exemption to domestic partners. This legislation allows for uniformity with existing tax laws in cases where property is being passed down to a loved one. This legislation will strengthen and protect families without regard to sexual orientation.

Supported legislation, sponsored by Delegate Galen Clagett, that would have allowed the Comptroller's Office to withhold unclaimed property from recipients who are delinquent in child support payments.

As a result of the bill hearing, Comptroller Franchot searched the Unclaimed Property database for child support delinquencies and uncovered 1,700 delinquent parents who, in total, owed their families more than $670,000.

Improving Maryland's Business and Economic Climate

Maintaining his record of strong support for the State of Maryland's Minority Business Enterprise (MBE) program, Comptroller Franchot supported successful legislation (HB 471lSB 489; SB 21 1) that will create new opportunities for minority and women-owned businesses by expanding the criteria for MBE eligibility.

Supported successful legislation (HB 389lSB 61 1) designed to safeguard the integrity of the State's procurement process and protect the MBE program from fraud and abuse.

A strong advocate of Maryland's globally recognized life sciences industry, Comptroller Franchot supported successful legislation (HB 493) that will help ensure the continued success of Maryland's Biotechnology Tax Credit, expand opportunities for its application and attract greater investment in our state's growing biotech companies.

Supported the O'Malley Administration's successful legislation that will prohibit construction companies and landscaping businesses from misclassifying their employees as independent contractors. Such misclassification has resulted in a substantial loss of tax revenue and creates an uneven playing field for those who adhere to the rules. By establishing strong enforcement mechanisms, this legislation will provide important protections for both law-abiding businesses and workers.

Continuing his support for Maryland's fast-growing and nationally acclaimed wine industry, Comptroller Franchot supported legislation that would have provided Maryland-based wineries the chance to host more successful wine-tasting events and create a more enjoyable experience for both local consumers and tourists. The Comptroller will continue to work for passage of this important legislation in 2010 by working with both industry stakeholders and legislative leaders.

Safeguarding Maryland's Natural Resources

A steadfast advocate of land preservation as a member of the Board of Public Works, Comptroller Franchot supported successful legislation that will allow the Department of Natural Resources (DNR) to issue bonds for open space and farmland acquisition, and finance the bonds with transfer tax proceeds.