With lawmakers and the governor hammering out a budget package, Maryland PIRG is calling on decision-makers to close corporate tax loopholes that allow out-of-state businesses to avoid paying Maryland taxes.

Current rules allow multi-state businesses to shift their Maryland profits to out-of-state subsidiaries, leaving Maryland businesses that pay their in-state taxes at a competitive disadvantage. It also leaves taxpayers—both businesses and individuals—to foot the bill for vital services including transportation, education and public safety.

Twenty-one states have already closed this loophole by passing “combined reporting” laws. These laws require companies to file jointly with their out-of-state affiliates. Then, taxes can be fairly assessed, based on a company’s combined business activity within a state.

“With a $1.5 billion budget deficit, making sure corporations pay their fair share of taxes not only makes good fiscal sense, it’s also the right thing to do,” said Maryland PIRG’s Johanna Neumann. Maryland PIRG is asking in-state businesses to contact decision-makers to support a more level tax playing field.