COLUMBIA, Md. (12/12/07)--Maryland’s legislature recently held a 2007 special session in which 94 bills were introduced, with only a few affecting credit unions (FOCUS Newsletter
Dec. 10). Maryland Gov. Martin O’Malley signed six bills into law:
* HB 1--Budget Reconciliation Act; * SB 2--Tax Reform Act of 2007; * SB 3--Maryland Education Trust Fund-Video Lottery Terminals; * HB 4--Video Lottery Terminals-Authorization and Limitations; * HB5--Transportation and State Investment Act; and *SB 6--Working Families and Small Business Health Coverage Act.
While credit union service organizations (CUSOs) are probably subject to any applicable corporate tax provisions, credit unions should pay particular attention to the Tax Reform Act of 2007 (SB 2), according to the Maryland and District of Columbia Credit Union Association (MDDCCUA). SB 2 creates a Maryland Business Tax Reform Commission that will review and evaluate the state’s current business structure. It will be composed of 17 members who must submit an interim report by Dec. 15, 2010, and a final report before Dec. 15, 2011. Two other bills are of interest to credit unions: HB 55, which would increase the annual filing fee for state-chartered credit unions from $300 to $1,000; and HB 30, which would cause the balances on certain gift certificates to be considered abandoned four years after they were acquired, the MDDCCUA said. The gift certificate funds also would be considered abandoned if they were unused for one year. The abandoned funds would be turned over to the Maryland Education Fund by the state comptroller. Both bills failed, but it is highly likely that most of the failed bills from the special session will reappear when the 2008 Maryland General Assembly begins Jan. 9, said the MDDCUA.