FY 2026 STATE BUDGET
HB 352 Budget Reconciliation and Financing Act PASSED – Effective Beginning June 1, 2025
POSITION: Oppose as Introduced The Budget Reconciliation and Financing Act was amended several times over the course of the session. REALTORS ® had opposed measures to reduce the estate tax, discontinue opportunity zone credits, and eliminate itemization on state tax returns. The final version makes several changes: • Itemization: Increasing the standard deduction by 20%, while gradually phasing out itemized deductions for those with adjusted gross incomes above $200,000 • Income Taxes: Adds two new income tax brackets: o 6.25% for single filers of $500,000-$1 million and joint filers of $600,000-$1.2 million o 6.5% for single filers above $1 million and joint filers above $1.2 million • Capital Gains: Establishes a 2% surcharge on net capital gains if adjusted gross income is above $350,000. This does not apply to the gains from the sale of real property used as a primary residence sold for less than $1.5 million. • Technology Taxes: Imposes a 3% tax on data and IT services provided within Maryland, based upon federally defined categories, while excluding certain cloud computing, cyber security, and other emerging technology services. • Removal of Tax Exemptions: Repeals current exemptions for sales of photography used in advertising, sales of coins or bullion over $1,000, and vending machine sales. • Local Income Taxes: Local governments are authorized to increase the local income tax rate from 3.2% to 3.3%. • New vehicle fees and taxes: Includes increases to increase: o titling fees to $200; o excise tax rates to 6.5%’ o annual registration fees for passenger, truck, multipurpose and rental vehicles; o rental car taxes to 3.5%; and, o $5 fee per tire purchased.
Made with FlippingBook - professional solution for displaying marketing and sales documents online