Taxation - Ultra-High-Net-Worth Individual Surtax and Wealth Tax

HB 1238 would impose a surtax on the taxable income of Maryland residents with ultra-high net worth and a one-time wealth tax on their net worth exceeding a set threshold. It directly affects Maryland residents whose net worth surpasses the specified amount, requiring them to pay additional taxes based on their income and total assets. The revenue would fund the Maryland Strategic Investment and Stabilization Fund, which must be used to reduce the state’s budget deficit or support education, behavioral health services, affordable housing, and infrastructure - specifically as outlined in the bill’s provisions. The surtax applies to taxable income, while the wealth tax is a single payment calculated using fair market value of assets minus liabilities.