comptroller

All Md. Comptroller Branch Offices Closed; Taxpayer Assistance Still Available Via Email, Phone

March 20, 2020 by Spy Desk

Comptroller Peter Franchot has announced that all of the agency’s branch offices throughout the state would close at 4:30 p.m. Thursday and will remain closed until further notice.

With increasing cases of COVID-19 reported throughout Maryland, Franchot made the decision to close the remaining branch offices to protect the health of employees and members of the public. Most of the branch offices remained open earlier this week to assist walk-in taxpayers during the busy tax season.

“We want to take every precaution to keep our employees, their families and citizens as safe as possible from the spread of this disease,” Comptroller Franchot said. “Taxpayers have many options to complete their tax returns. They can still file electronically and have their questions answered via phone or email. We have extended nearly every deadline for payment of state taxes to help families facing employment challenges and to keep cash flowing in our economy, as well as to reduce the volume of assistance provided by our taxpayer services agents.”

Taxpayers are urged to file their Maryland state income tax returns electronically, including the use of direct deposit for refunds. Taxpayers also can email their questions to taxhelp@marylandtaxes.gov or call 1-800-MD-TAXES for help weekdays from 8:30 a.m. to 7 p.m. (extended hours during tax season remain in effect).

In recent days, as citizens and small business owners cope with the state of emergency, Comptroller Franchot announced several deadline extensions for income, corporate and business tax payments. They are as follows:

April 15 – Filing deadline for federal income tax or to file a federal extension. No separate Maryland extension is necessary if you file a federal extension.

June 1 – Returns and payments are due for Maryland business-related taxes not collected in March, April and May including sales and use tax, withholding tax, and admissions & amusement tax, alcohol tax, tobacco tax, and motor fuel tax, as well as tire recycling fee and bay restoration fee returns.

July 15 – Deadline for Maryland individual, corporate, pass through entity, and fiduciary income tax payments, as well as March quarterly estimated payments.

October 15 – Deadline for filing Maryland income tax returns if a federal extension was filed.

Md. Comptroller Branch Offices Reopen for Taxpayer Services

March 17, 2020 by Spy Desk

Comptroller Peter Franchot announced that nine agency branch offices reopened Monday, March 16, and will be open from 8:30 a.m. to 4:30 p.m. weekdays.

Taxpayers are still urged to call 1-800-MDTAXES for assistance or contact the comptroller’s office by email.

If necessary, residents of Talbot, Caroline, Queen Anne’s, Dorchester and the Lower Shore counties may visit the Salisbury branch office in Sea Gull Square at 1306 South Salisbury Blvd., Suite 182, Salisbury, or call 410-546-8100 for assistance.

Residents of Kent County may visit the Elkton Branch Office in the Upper Chesapeake Corporate Center at 103 Chesapeake Blvd, Suite D, Elkton, or call 410-996-0465.

Two branch offices — Upper Marlboro and Frederick — are located within county courthouses and are subject to local courthouse policies. The Upper Marlboro office will remain closed and there will be limited public access to the Frederick office. For a complete list of branch offices, visit www.marylandtaxes.gov.

Taxpayers who would typically use the Upper Marlboro branch should visit the offices in Greenbelt or Waldorf. Taxpayers who use the Frederick branch can visit the Hagerstown or Wheaton offices.

Md. Comptroller Peter Franchot

“Critical taxpayer services provided by our branch offices will be met by our staff, who will be exercising an abundance of public health caution,” said Franchot. “Our staff is committed to doing everything possible to ensure continuity of critical functions, including processing tax returns, distributing tax refunds, processing state payroll and making vendor payments.”

More than ever, taxpayers are urged to file their Maryland state income tax returns electronically, including the use of direct deposit for refunds. Taxpayers can email their questions to taxhelp@marylandtaxes.gov or call 1-800-MD-TAXES for help weekdays from 8:30 a.m. to 7 p.m. (extended hours during tax season remain in effect.)

Last week, Comptroller Franchot announced certain business tax payments currently due in March, April and May will now be due June 1. The extension applies to businesses filing sales and use tax, withholding tax, and admissions & amusement tax, as well as alcohol, tobacco and motor fuel excise taxes, tire recycling fee and bay restoration fee returns.

Fearing Possible Depression, Franchot Urges ‘Timeout’ on Tax Measures

March 14, 2020 by Maryland Matters

Maryland’s chief tax collector implored state lawmakers to delay action on revenue measures, saying that a looming recession — or worse — make this a dangerous time to add to the tax burden businesses and consumers face.

In an interview on Friday, Comptroller Peter V.R. Franchot (D) warned that Maryland faces not just a recession “but a possible depression” due to the spread of COVID-19. The expected downturn in economic activity triggered by the disease could take a 20% bite out of revenues this year, he predicted.

“This is precisely the wrong time to be imposing higher taxes on the state of Maryland’s business and/or individuals,” he said. “I can’t emphasize that enough.”

Franchot has sided with Gov. Lawrence J. Hogan Jr. (R) in opposing the Blueprint for Maryland’s Future, the bill that would advance the recommendations of the Kirwan Commission, a panel that spent years crafting ways to improve the state’s K-12 education system. In that respect, his opposition to Kirwan-related tax hikes is not particularly noteworthy. Hogan’s political Twitter accounts on Friday linked to articles containing Franchot’s recent warnings about taxes — a reminder of how frequently the governor’s and comptroller’s agendas are aligned.

But Franchot’s appeal to lawmakers appeared to go beyond earlier statements of opposition.

“Take a time out,” said Franchot, an already-announced candidate for governor in 2022. “Wait for a special session, or whatever, six months from now. Don’t pull the trigger right now. The world has changed in the last few days.”

University of Maryland economist Peter Morici said the severity of the drop in economic activity will depend on how long the virus lingers — and that two quarters of low or depressed economic growth is likely.

“I think his number of 20% is probably a responsible number, and just the mere delaying of revenues means the state has to borrow more,” said Morici. “We’re looking at a period of extended austerity, at least for this year and maybe into next, or this year into 2022. But I think his comments are very responsible given the uncertainty of this thing.”

Morici, who teaches economics at the University of Maryland’s Smith School of Business, called this “a very imprudent time to raise taxes.”

In the wake of Franchot’s warning and the uncertainty surrounding the COVID-19 outbreak, Kirwan backers signaled on Friday that they recognize the need to maintain flexibility in financing their education reform efforts.

“We’re having those conversations right now,” House Majority Leader Eric G. Luedtke (D-Montgomery) said. “A number of the revenue bills we’ve passed have delayed effective dates. They wouldn’t be effective until 2021.”

House Economic Matters Committee Chairman Dereck E. Davis (D-Prince George’s), whose jurisdiction stands to reap significant benefits from Kirwan, said the General Assembly isn’t “going to do anything reckless.”

“Speaker [Adrienne A.] Jones and [Appropriations Committee] Chairwoman [Maggie] McIntosh… are thinking about the same things that the comptroller is thinking about. This is, we trust, a temporary situation. Things are going to bounce back as soon as we can get through this crisis. Things will return to normal. And we can make minor adjustments in some of the timetables.”

Sean Johnson, the state teachers’ union’s chief legislative strategist, said financing Kirwan reforms “was always going to require a delicate balance and a multi-year approach.”

“Ultimately the most important thing for this session is for the Blueprint and a new funding formula to pass so our students get the support that they deserve,” he added.

On Thursday the state’s Board of Revenue Estimates chose not to update prior budget estimates for the current and next fiscal year, citing economic uncertainty due to the global pandemic.

To give business-owners time to grapple with the outbreak, the comptroller’s office has extended certain business tax filing deadlines until June 1. Franchot said he will also delay the April 15 tax-filing deadline for individuals an unspecified period, either in tandem with the IRS or, if necessary, on his own.

For the state’s treasury, that sets up a one-two punch — delayed revenues and lower-than-projected revenues.

“I’m in touch with businesses all around the state,” Franchot said. “They’re already saying the supply chain is getting choked off and they’re very concerned about being able to… survive this.”

“We’re waking up every day and the world has changed.”

By Bruce DePuyt

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