Tax hikes include $36M increase on business loans (Demo)

The Maryland Senate is expected to give final approval today to a package of tax hikes that will raise more than $300 million a year, with the bulk of it coming from increases of 5% to 15% on incomes of taxpayers making more than $100,000 per year.
But a little noticed provision will also raise $36 million in new taxes from companies that back mortgages on commercial development and homebuilding. Opponents say it will add to the cost of construction and harm Maryland’s business rankings.
The proposed tax hikes will require businesses to pay county governments a recording tax on “indemnity mortgages,” in which third parties guarantee to pay a mortgage if a builder or developer fails to pay a construction loan or other debt.

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