MD Businesses Getting A Tax Break | WYPR

MD Businesses Getting A Tax Break

Jan 6, 2021

Maryland Comptroller Peter Franchot
Credit Courtesy of the Comptroller's Office

State Comptroller Peter Franchot announced Wednesday that he is extending the filing and payment deadlines for certain business taxes.

Franchot said at the Board of Public Works meeting that business taxes and quarterly estimated income tax returns and payments that normally would be due in January, February or March won’t be due till April 15.

It’s similar to an extension granted last year during the early stages of the COVID-19 pandemic.

Franchot said that doesn’t mean the businesses won’t have to pay the taxes, just that they can keep the money in their pockets a little longer to help an economy stressed by the continuing pandemic.

“They can use that money to lubricate the economy, because the more money that we put in and with these stimulus plans, the quicker and faster the economic recovery will be,” he said.

He called it an interest free loan that would pump more than $1 billion into the economy, but not hurt the state’s revenue picture.

Under Franchot’s order, businesses and self-employed individuals or independent contractors with estimated income tax returns and payments due on January 15 also will be granted an extension until April 15.

"As businesses await approval of applications for grants and loans, receipt of funds and additional federal government action, these tax extensions immediately alleviate financial pressures during challenging times,” he said in a statement. “Just like last year when we gave businesses a breather, after 90 days, taxpayers will remit what is due, ensuring this action is budget neutral for the State of Maryland.”

And although they can delay filing tax returns, employers still must complete their 2020 withholding tax returns and payments due by January 31. That’s to make sure that taxpayers get their documents in time to file returns by the April 15 deadline.

The extension applies to business taxes administered by the Comptroller: sales and use, admissions and amusement, alcohol, tobacco, and motor fuel tax, as well as tire recycling fee and bay restoration fee returns and payments with due dates between January 1, 2021 and April 14, 2021.