Gov. Martin O'Malley told legislative leaders yesterday that he wants to close corporate tax loopholes to address the state's projected $1.5 billion budget shortfall but does not want to raise the property tax.
O'Malley met with House Speaker Michael E. Busch, Senate President Thomas V. Mike Miller and others.
"I expressed my desire to work hard over the next week to identify the loopholes we are committed to repairing," O'Malley said.
He mentioned two ideas that have circulated in Annapolis for years: combined reporting, which forces companies to report profits from all subsidiaries as a means to prevent them from shifting income to states with lower corporate income tax rates, and closing a loophole that limited-liability companies use to avoid transfer taxes on property sales.
The leaders discussed calling a special legislative session to deal with the budget (Miller favors one, Busch does not), and O'Malley expressed his desire to leave the property tax rate alone.
"I've always had a strong aversion to the property tax," O'Malley said. "People are already getting hit hard by the property tax and rising assessments."