Tax Legislation

As summer wanes, here is a collection of unrelated "workplace" notes from the briefcase, notebook and computer memory system:BEST LINE: "What effect has the recession had on me? I sleep like a baby -- every three hours I wake up and cry." (INC, September).DOING IT WRONG: "How to Fail in Business" in Success, September, is worth reading. Excerpts: "If a client writes with a complaint, send it to the legal or operations department for response. . . . Don't bother to build up true quality in your product or service.

Get ready for another tricky tax season. Some last-minute tax legislation by Congress has once more turned something predictable and tedious into something that's confusing and, well, tedious. This time, it waited so long to pass legislation to stop the spread of the alternative minimum tax that the IRS hasn't fully updated its systems yet. Millions of taxpayers who file certain forms must wait until Feb. 11 to get their returns processed. That's sure to delay some refunds. On the upside, Congress created new tax breaks for homeowners.

A Maryland anti-smoking coalition said yesterday 182candidates for the General Assembly, including 74 incumbents, have pledged to support a $1.50-a-pack increase in the state's cigarette tax to reduce teen smoking."

WASHINGTON -- Americans would not see any of the tax relief promised by House Republicans until after Congress acts to balance the federal budget, under a compromise being fashioned by Republican leaders.The new proposal would delay the tax cuts promised in the House GOP "Contract with America" until after Congress adopts legislation to produce a balanced budget by 2002. Congress also would have to complete the first year of spending cuts before tax cuts would be granted.If the compromise formula is adopted, Republicans would seek to have the legislation completed this fall -- in time for the first round of tax cuts to take effect next year.

Voters will punish those who opposed tobacco taxIn The Sun's recent analysis of tobacco tax legislation ("Governor paid for tobacco tax OK," April 12), Republican leaders (and Senate President Mike Miller) wrongly assume that voters will reward the Republicans' opposition to this public health measure to reduce teen smoking. They forget that in last year's election at least four anti-tobacco tax Republican delegates were defeated by pro-tobacco tax Democrats who ran on this issue -- and that Governor Parris Glendening's support for the measure was a key part of his big victory over Ellen Sauerbrey.

Howard County Executive Ken Ulman is moving to change a seemingly contradictory policy under which people with limited incomes often own a partial share of their subsidized homes but must pay property taxes on the full market value. Ulman, who said during his election campaign that he would like to reduce that burden, asked the local General Assembly delegation this week to help him deliver on that pledge by passing a tax-relief bill. The property tax legislation is one of a package of local bills Ulman is asking county legislators to support in next month's Assembly session.

If there is a theme for the 1991 General Assembly session that begins a 90-day stand in Annapolis today it is the government's lack of money. The state is deep in the revenue hole, putting a crimp in every agency agenda. That could make this an unhappy meeting for lawmakers, who must face the public's wrath for decimating popular services or for raising taxes to keep these programs going. It is a no-win situation.Gov. William Donald Schaefer is in a similar bind. He plans to support a hefty gas-tax increase to keep the state's road-building and mass-transit priorities on schedule.

WASHINGTON -- They represent just four easy-to-miss little items in a 700-page tax bill heading for House action. But they could prove highly significant if you:* Expect to use the $125,000 exclusion for capital gains on your home sale profits after age 55.* Maintain an office in your home and take depreciation deductions.* Rent out your home for a couple of weeks and hope to keep the rental income tax-free.* Want to use the standard tax-deferral "rollover" rules for home-sale profits after a divorce or separation.

ANNAPOLIS -- An unhappy state Senate did today what it tried to avoid all session: It voted to force virtually every Marylander to pay more in taxes.The $245 million plan, approved on a relatively close 26-20 vote (24 votes are required for passage), now goes to the House of Delegates along with the Senate's pared-back version of Gov. William Donald Schaefer's $12.5 billion spending plan for fiscal 1993.Although the tax plan likely will be changed by the House, the Senate version would expand the state sales tax to cover a variety of products and services not now taxed, such as pretzels, potato chips and prepared foods sold in grocery stores; repair services; dry cleaning; car phones; lawn care; and pay-per-view TV, among others.

Harford County Executive Eileen M. Rehrmann urged local legislators yesterday to bolster economic development in the county by repealing Maryland's snack tax during the next General Assembly session.Speaking to the county delegation, Mrs. Rehrmann said the sales tax could slow further expansion at Frito-Lay Inc.'s Aberdeen plant. The 3-year-old 5 percent tax applies to salty, unbaked snacks such as pretzels, nuts and chips."Other states which do not have this tax are knocking on Frito-Lay's door, attempting to persuade them to move," she said during the meeting at Harford Community College.