Maryland Governor Calls for Combined Corporate Tax Reporting

Maryland Gov. Wes Moore (D) wants to require multistate corporations to file a single, combined tax return, a change he said would allow for future cuts to the corporate tax rate since the state would have a broader tax base.

Moore’s fiscal 2026 budget proposal, which also proposes a tax hike on upper incomes and a high-income capital gains surcharge, calls for adoption of a “water’s edge” combined reporting method for companies. That approach treats a parent company and all of its US subsidiaries as one corporation for state income tax purposes.

The method, employed by at least 29 states, ...