DUNDALK, Md. (Sept. 1, 2009) Governor Martin OMalley, joined Monday by Lieutenant Governor Anthony Brown, Senate President Thomas V. Mike Miller, Jr., House Speaker Michael E. Busch, Ronald Wineholt of the Maryland Chamber of Commerce, and others to announce Marylands first tax amnesty holiday since 2001. The amnesty period, which begins September 1 and runs through October 30, is a result of legislation passed during the 2009 legislative session and allows those Marylanders who owe back taxes to the state to pay those taxes free of penalty and at half the interest accrued.
This tax amnesty holiday allows individuals, families, and small businesses who may have fallen behind the opportunity to make things right without excessive penalty or interest, said Governor OMalley. Consistent with many of the suggestions weve received from members of the public, were implementing this holiday as we work to reform our government in these difficult economic times to make it more efficient and effective for the people of Maryland.
It is estimated that for every $10 million raised by the upcoming holiday the State will add $7.2 million to the General Fund. The remaining revenue will go toward local governments and the Transportation Trust Fund. During the last such holiday in 2001, the State collected $39.5 million in revenue.
It is estimated that approximately 177,000 individual income tax accounts and 18,000 business tax accounts are delinquent in the State of Maryland, accounting for as much as a half billion dollars. This two month amnesty period provides payment plan options for the Maryland Comptrollers office. In order to be eligible for the 2009 holiday, all payments must be received by December 31, 2010.
The 2009 Maryland Tax Amnesty holiday is a result of the passage of SB552, sponsored by Senator James DeGrange and signed into law by Governor OMalley in May. The holiday applies to income, sales, withholding and other taxes, allowing citizens to pay back-taxes free of penalties and one-half the interest due.
For more information about the tax amnesty holiday, visit the Maryland Comptrollers website at www.marylandtaxes.com, or call 1-800-MDTAXES.
Source: Office of Gov. O'Malley