A008-9900

10	AN ACT CONCERNING



20		Tax - General - State Income Tax Rates



30	FOR the purpose of simplifying the collection of income taxes so that it may be 

40	easier to calculate both for residents and for officials.



50	BY repealing and adding to

60		Article - Tax-General

70		Section 10-105 (a)

80		Annotated Code of Maryland

90		(1997 Replacement Volume)



100	SECTION 1.  BE IT ENACTED BY THE MARYLAND STUDENT                   

110	LEGISLATURE: that the laws of Maryland read as follows



120		Article - Tax - General



130	¤10-105 (a).  State Income Tax Rates



140	(a)  Individual.  - The State income tax rate for an individual is:



150		(1)  2% of Maryland taxable income of $1 through $1,000;

	

160		(2)  3% of Maryland taxable income of $1,001 through $2,000;



170		(3)  4% of Maryland taxable income of $2,001 through $3,000; and



180		(4)  for Maryland taxable income in excess of $3,000:



190			(i)  4.95% for a taxable year beginning after December 31, 1997   

200			but before January 1, 1999;



210			(ii)  4.9% for a taxable year beginning after December 31, 1998 but 

220			before January 1, 2000;



230			(iii) 4.85% for a taxable year beginning after December 31, 1999 but 

240			before January 1, 2001;



250			(iv) 4.8% for a taxable year beginning after December 31, 2000 but  

260			before January 1, 2002;



270			(v) 4.75% for a taxable year beginning after December 31, 2001.



280		(1) INDIVIDUALS EARNING LESS THAN $1500 PER FISCAL YEAR

290		SHALL BE EXEMPT FROM STATE INCOME TAXES; AND

300		(2) INDIVIDUALS EARNING IN EXCESS OF $1500 PER FISCAL YEAR

310		SHALL BE SUBJECT TO A STATE INCOME TAX OF 4.75%. 



320	SECTION 2. AND BE IT FURTHER ENACTED, that this act shall take effect 

330		January 1, 2001



340	MANDATES:		Governor Parris Glendening

350			Lt. Governor Kathleen Kennedy Townsend

360			State Treasurer Richard Dixon

370			Robert Platky, Governors Financial Administrator

380			State Senator Nancy Jacobs

390			Delegate Charles Boutin

400			Delegate Mary Dulany-James

410			Delegate Daniel B. Riley

420			Senator Barbara Hoffman, Chair, Budget and Taxation

430			Committee

440			State Senator from Carroll County







Co-sponsors: 

Kate O. Boyle

Western Maryland College

2 College Hill

Westminster, MD 2157

(410) 751-8179

kob001@wmdc.edu


Holly K Smith

Western Maryland College

2 College Hill

Westminster, MD 21157

(410) 751-8187

hks001@wmdc.edu