Empty Cupboards And A Demanding King

As the month of October fades from view, clarity now comes to Marylanders as to the actions

taken by the democratic majority in the General Assembly. Those actions culminate in tax, toll,

and fee increases at a time when our state’s economic engine is broken and we find ourselves

coming in at number 50 in jobs created, and number 1 in jobs lost.

We hear the chant of, “jobs, jobs, jobs”, but the echo can be heard in empty buildings from

Garrett to Worcester. Every extra dollar taken by the state government is just another dollar

missing from our local economy, and, with a General Fund Budget that spends 12% more than

the previous year, and a Capital Budget almost 200 million more than what was recommended

by the non-partisan bean counters, increases are unavoidable. The House Republican Caucus

offered an alternative budget that limited increases in spending to 3% (the same level of

projected revenue increases), but it was rejected.

So, here is a list of what is proposed by the administration and what has been enacted and

signed into law in 2011, as unpleasant as it is:

Governor’s Commission on Sustainable Growth

(proposal)

Increase in Bay Restoration Fee (Flush Tax)

●

In total 200% increase from $30 per year to $90 per year by FY ’15 (July 2014)

●

In FY ’13 (July 2012) a 100% increase from $30 per year to $60 per year.

●

In FY 15 a 50% increase from $60 per year to $90 per year

●

Indexing to inflation beginning in FY 16 with a cap of 3% per year

Blue Ribbon Commission on Transportation Funding

(proposal)

●

64% increase in the gas tax over three years (from 23.5¢ to 38.5¢)

●

100% increase in emission inspection fees (from $14 to $28)

●

50% increase in vehicle registration fees (from $50.50 to $75.75)

●

8% increase in vehicle titling tax (from 6% to 6.5%) or elimination of trade-in allowance

Toll Increases

(Approved by the Transportation Authority 9/22/11)

Key Bridge/Fort McHenry Tunnel/ Harbor Tunnel

●

50% increase from $2 both ways to $3 both ways effective November 1

●

33% increase from $3 both ways to $4 both ways effective July 1, 2013

●

Total increase 100% from 2011 to 2013.

JFK Memorial Highway Section of I-95/Thomas J. Hatem Memorial Bridge

●

20% increase from $5 to $6 effective November 1

●

33% increase from $6 to $8 effective July 1, 2013

●

Total increase 60% from 2011 to 2013

Bay Bridge/US 301 Bridge

●

60% increase from $2.50 to $4 effective November 1

●

50% increase from $4 to $6 effective July 1, 2013●

Tax and Fee Increases – 2011 Regular Session

Budget/BRFA

Taxes and Fees Increases in the FY 2012 Budget/BRFA

● Vehicle Titling Tax doubled $50 to $100

● Vanity Plate Fee doubled from $25 to $50

●

Land Recording Fees – doubled $20 to $40

●

Birth Certificate Fees – doubled from $12 to $24

● Increase in Hospital Assessments adding 2.5% to rates

● Increasing Nursing Home Tax from 4% to 5.5%

●

Parole Supervision Fee – doubled from $25 to $50

New Taxes and Fees in the FY 2012 Budget/BRFA

● 2% Premium Tax on the Injured Worker Insurance Fund (IWIF)

● Payroll Garnishment Fee for State Employees

● Maryland Higher Education Commission Program Approval Fee

Other Bills With Tax and Fee Increases from 2011 Session

●

HB 1196 – Increases the maximum fee imposed by Maryland Historical Trust from 1% to 3%.

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of license and a new $20 fee for all initial applications.

HB 362 – Increases Licensing Fees for the Home Improvement Commission by $25 for each type

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HB 1213/SB-994 – Increases sales tax on alcohol 50% from 6% to 9%

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pawnbroker from $75 to $300

HB 195 – Increases the licensure fee for a secondhand precious metal object dealer or

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HB 1022 – Establishes a registration and renewal fee of $1,000 for Debt Settlement Services

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transporting waste kitchen grease.

HB 881 – Establishes an application fee of $100 and a $100 per vehicle registration fee for

●

an out-of-state attorney.

HB 523 – Requires the State Court Administrator to assess a $100 fee for the special admission of

Viewing these increases with a backdrop of the 2007 increases is worth noting. How many

times will we be told about how increases will be placed in “lock boxes” and how taxes and tollswill support specific projects only to see them channeled into the ever increasing General Fund.

Speaking of those not to distant increases, less we forget:

Remembering When… The 2007 Special Session

The Largest Tax Increase In Maryland’s History (so far anyway)

●

20% Increase in the Sales and Use Tax (From 5% to 6%)

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and replaced with the "Millionaire’s Tax", a 6.25% tax rate on incomes over $1 million.

The "Millionaire’s Tax" sunsetted on December 31, 2010.

Also included an expansion to Computer Service which was repealed in the ’08 regular session

●

18 % Increase in the Corporate Income Tax (From 7% to 8.25%)

●

20% Increase in Vehicle Excise Tax

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117% Increase In Vehicle Titling Fee

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100% Increase in Cigarette Tax

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5% Income Tax Increase on Incomes over $150,000 (4.75% to 5%)

●

11% Income Tax Increase on Incomes over $300,000 (4.75% to 5.25%)

●

16% Income Tax Increase on Incomes over $500,000 (4.75% to 5.5%)(*Many thanks to the House Republican Caucus for compiling the facts and figures)

We all understand the need for government to collect taxes, but how can we accept outrageous

government growth in spending when our wallets are bare? Maryland is suffering under a

progressive weight from which she longs to be free. Her people are suffering, her businesses

fleeing, and those in power refuse to yield or learn.

Maryland, my Maryland...hang in there. Your people are wiping the slumber from their eyes.

New Posts to fall below.

Total increase 140% from 2011 to 2013

by Delegate Mike McDermott