Photo by Associated Press Governor Martin O’Malley, center, signs legislature to close a $1.7 billion structural deficit along with Senate President Thomas V. Mike Miller Jr., left, and Speaker of the House Michael Busch on Monday in Annapolis.
	SUMMARY OF TAX MEASURES A list of tax increases approved by House and Senate negotiators. The General Assembly adjourned about 2:35 a.m. this morning INCOME TAX: Maryland’s income tax rates will be restructured for the first time in 40 years. Now, the income tax rate is mostly flat, because people who earn more than $3,000 in taxable income pay a 4.75 rate. A compromise between the House and Senate on Gov. Martin O’Malley’s proposals creates three new tax brackets. The new brackets are: 5 percent for single filers who make more than $150,000 and joint filers who make more than $200,000. 5.25 percent for singles making more than $300,000 and joint filers making more than $350,000. 5.5 percent for singles and joint filers making more than $500,000. PERSONAL TAX EXEMPTIONS: Increases personal exemptions from lower and middle-income residents while leaving them the same or reducing them at higher income levels. SALES TAX: Maryland’s sales tax will rise from 5 percent to 6 percent starting in January. The sales tax also will be extended to computer services — a key change that could raise an estimated $190 million. The computer services that will be affected include support services for computer systems or data processing facilities, custom computer programming, consulting services regarding computer systems design, and computer disaster recovery services. TOBACCO TAX: The state’s tobacco tax will rise from $1 a pack to $2 a pack. A Senate proposal to require the tax to be reduced proportionate to any federal tax increase would be eliminated. SALES TAX HOLIDAYS: Will be delayed until fiscal year 2011. CORPORATE INCOME TAX: The corporate income tax will rise from 7 percent to 8.25 percent. COMBINED REPORTING: A proposal aimed at making corporations pay more taxes in the state by preventing them from moving profits to out-of-state-subsidiaries will be put off and studied. CONTROLLING INTEREST: Closes corporate loophole enabling corporations to skip transfer taxes and real estate recordation taxes, or 2 percent of sales prices paid by residents and small businesses. TITLING TAX: The vehicle titling tax rises from 5 to 6 percent with full trade-in allowances.

The special session, called by Gov. Martin O'Malley, ended with approvals of roughly $1.3 billion in new taxes and $550 million in suggested cuts to increases for fiscal 2009. They also approved a referendum on slots, an implementation bill if slots are approved, a health care expansion bill and a fund to benefit the Chesapeake Bay.

The special session was intended to address an estimated $1.5 billion state budget deficit.

Delegate Rick Weldon, chairman of Frederick 's delegation of state lawmakers, said he doesn't expect any tax or fee increases to be discussed next session.

There will be requests to increase spending, however, predicts Frederick County Republican Delegate Paul Stull.

"They'll think now we're flush in revenues, and even down the line, a surplus," Stull said. "I just see people coming in and asking for different funds."

Delegate Sue Hecht, a Democrat who represents Frederick , predicted much of the regular session will be dominated by examining the cuts the governor decides to include in his fiscal 2009 budget.

The General Assembly chose to outline roughly $330 million of suggested cuts to increases, but leave the rest to the governor.

Weldon said he thinks new revenues could be discussed as early as January 2009, if the November 2008 referendum on slots fails and Democrats want to find a new source of funding. If the referendum is successful, he doesn't think they will bring up new taxes for many years.

Weldon, a Republican representing Frederick and Washington counties, voted for the bill authorizing a referendum on slots.

Since then, he's drawn fire from Republicans across the state for enabling the tax increases by allowing slots to get through the House.

Proponents of slots needed 85 votes, or three-fifths of the members, to get the referendum through the House because it was proposed as a constitutional amendment. The vote was 86-52.

The anti-administration blog www.omalleywatch.com targeted Weldon, saying Senate President Thomas V. Mike Miller would not allow the tax bills to pass without slots. Weldon got more than 240 e-mails criticizing his vote, though none were from his district.

Weldon doesn't believe that every Republican voting against slots would have stopped the increases, however.

"There's no way (House Speaker Michael) Busch would have allowed O'Malley to look like a failure," Weldon said. "It's what the State Republican Party is using as the messaging."

He voted for slots because he's voted for them in the past, and he hopes the referendum passes, he said.

"I'll certainly make the point to people that passing a slots referendum will be preferable to facing future tax increases,"

In the meantime, Weldon said he's no longer concerned about being a loyal Republican in his votes next session.

"I have to figure out my place in the world now because it seems like at least from the perspective of the state Republican party, I no longer represent what they think is a loyal Republican."

Weldon has always been regarded as moderate, choosing to support more liberal stances on health care and stem cell research.

"Instead of deciding whether I'm a Republican or an Independent, I guess I'm going to focus more on what's in the best interest of the people of Frederick and Washington counties, rather than what's in the best interest of the (party)," Weldon said.

He doesn't plan on changing his party affiliation, but is considering forming a "Common Sense Caucus" of lawmakers who don't always want to take the party line.

"I think there are other legislators who are a little sick of the partisan bickering who may want to focus on policy decisions, without the weight and burden of the state political parties on their shoulders," Weldon said.

Other local lawmakers don't think the special session will change their votes or efforts in January.

Sen. Alex Mooney, a Republican representing Frederick and Washington counties, said Monday afternoon he was still in shock so many taxes had been hiked so fast.

"Here I am in the ninth year (of office) now, and I've just never seen this," Mooney said. "It was amazing to me, that you could raise so many huge taxes with so little deliberation."

Mooney did not support a single final bill during session.

He said the session confirmed his belief that Democrats shouldn't be running Annapolis.

"This is a result of a political monopoly," Mooney said. "They feel now they are unchecked."

Many of Frederick 's legislators were opposed to the special session in the first place.

Stull said he's even more opposed to it now because there were too many backroom deals.

"I think the citizens, once this all comes out, are going to be upset with all the taxes that were passed in the last three weeks and passed without their input, to put it bluntly."

Hecht said though she was opposed to a special session and would have preferred addressing the deficit in regular session, at this point the timing is academic. She thinks it's important to focus on the fact that they successfully moved past the deficit.

"O'Malley has a lot of grit and courage to fix this, and fix this soon, and not let it get worse," Hecht said.