Maryland’s Senate passed SB 2, “Tax Reform and Transportation Investment Act of 2007 ,” this afternoon by a very close vote of 24-23 with last-minute amendments being debated last night and this morning. The bill is pretty close to yesterday’s version, with these changes:

• Landscaping services were removed. (Sales taxes on computer services and arcade games were kept in the bill.)
• A new provision for Maryland residency requirements was added. The Maryland residency requirement was changed from six months to nine months, meaning if you are out of state (i.e. Florida) for six months plus one day, you will be paying some Maryland non-resident taxes.

I have been told other key provisions are the same as we reported in our last post. At this point, the Senate has done its job until the House passes something. Then, the two bodies will begin their conference process.

That means we now have to turn our attention back to the House. We have heard that the House Ways and Means Committee has modified HB 2 and HB 11, adding repair and maintenance services and removing computer services and landscaping. We have also heard that the House is adding the combined reporting provision that was taken out of the Senate package.

I feel like we are in a game of ping pong as we move between the two legislative bodies. However, as far as the MACPA‘s agenda, we are in very good shape — no sign of consulting, accounting or tax preparation services so far.

We will be watching the developments over the weekend and keeping you posted in case we need to holler again.