Franchot Applauds General Assembly for Passing Electronic Filing Bill

ANNAPOLIS, MD (April 14, 2009) - Citing the passage of his top legislative priority along with several other important departmental bills, Comptroller Peter Franchot today thanked the members of the Maryland General Assembly for their support during the 2009 legislative session. He expressed particular appreciation for the passage of legislation that will soon require professional tax prepares to file electronically, which will result in millions of dollars of savings for the state, accurate and secure tax returns, and expedited refunds for Maryland taxpayers.

“At a time when the state of Maryland is facing extraordinary fiscal and economic challenges, the Comptroller’s Office must have the tools to reward those taxpayers that are dutifully paying their taxes on time, and identify and collect from those who are not. By passing our electronic filing legislation, they have taken a great step in not only providing taxpayers with more accurate, efficient and effective service, they will also help the state save millions in processing costs,” said Comptroller Franchot. “All of our departmental bills that were passed by the General Assembly will help my office take our taxpayer service, compliance and enforcement efforts to the next level, and it was a pleasure to work collaboratively with leaders in both chambers toward their passage.”

Senate Bill 96, which passed overwhelmingly in the Senate and unanimously in the House of Delegates as House Bill 810, will require all tax preparers who prepare 300 or more returns to file them electronically beginning for Tax Year 2010. After that initial year’s phase in, the number drops to any paid preparer who prepares 200 or more returns in 2011 and 100 or more thereafter. The bill includes provisions authorizing the Comptroller to grant waivers based on specified circumstances.

The passage of the electronic filing legislation comes in a year where the Comptroller’s Office has used innovative public outreach to encourage taxpayers to file electronically. As a result, the number of returns filed electronically this year has increased by nearly 10 percent over last year. Each return that is filed electronically saves the state about $1.60 in processing costs, and taxpayers who file electronically have been receiving their refunds within 72 hours.

While the 2009 General Assembly has adjourned, Comptroller Franchot expressed his readiness to continue working with the Governor and General Assembly to ensure a sound fiscal future.

“The nation’s economic crisis has obviously taken its toll on our state’s finances, just as it has affected households and businesses throughout Maryland,” he said. “While so many tough choices have already been made to balance the budget, there are many more that lie ahead. Given the high stakes, I look forward to working in partnership with our state’s leaders to address our long-term budget defecit in a fiscally responsible manner, one which will maintain a strong business climate without placing an undue burden on Maryland families.”

A full list of the departmental bills is listed below. For more information, please visit the Comptroller’s Web site at www.marylandtaxes.com.

●Senate Bill 64 - Alcoholic Beverage Tax - Assessment and Appeals -Tax Procedures and Penalties
●Senate Bill 92 - Motor Carriers - Identification Markers - Forged Documents - Criminal Penalties
●Senate Bill 162 - Alcoholic Beverages - Resident Dealer’s Permit
●House Bill 163 - Motor Fuel - Dyed Diesel Fuel - Violations
●House Bill 653 - Fire Safety Performance Standard for Cigarettes -Sale
●Senate Bill 1059- Cigarette Business Licenses - Cigarette Manufacturers - Definitions and Scope of License