MARYLAND BRIEFING

Tuesday, July 24, 2007

STATE FINANCES

Half of Big Firms Fail to Pay Taxes

Advocates of overhauling Maryland's corporate tax structure pointed to new information yesterday showing that about half of the largest companies doing business in the state did not pay corporate income taxes in 2005.

The figures released by the comptroller's office were preliminary but showed that 68 of the largest 132 for-profit companies had not paid income tax in 2005. About 40 percent of a similar pool of companies paid no taxes in 2004. Companies pay taxes based on net income allocable to Maryland.

With the state facing a budget deficit of nearly $1.5 billion next year, Sen. Paul G. Pinksy (D-Prince George's) renewed his call to move to a system of "combined reporting," which makes it more difficult for companies to avoid taxes by sheltering income in subsidiaries, including those based out of state. "By using loopholes, shelters and other gimmicks, these big companies are avoiding paying Maryland taxes," Pinksy said. "It is appalling that Maryland is even discussing raising the sales tax when it hasn't yet collected this lost revenue from the corporate sector."

Rick Abbruzzese, a spokesman for Gov. Martin O'Malley (D), said the governor is interested in working with lawmakers to ensure corporations pay their fair share of taxes but would not commit to backing combined reporting.

-- John Wagner

MONTGOMERY COUNTY

2 Va. Men Killed in Beltway Crash

Two Virginia men died after a crash about 1:30 a.m. yesterday on the Capital Beltway's outer loop in the Cabin John area, just south of River Road, when a car hit a disabled pickup stopped on the shoulder, Maryland State Police said.

The driver of the Dodge Neon, David Castro of Alexandria, is believed to have been speeding when he lost control of his car, police said. Castro, 22, and passenger Mateo Rios, 21, of Falls Church were killed. A second passenger, Melvin Martinez, 22, of Falls Church, was taken to a hospital with injuries that weren't considered life-threatening.

The occupants of the pickup were not injured.

-- Mariana Minaya

Son Didn't Fire Gun, Woman Says

Baltimore police declined to comment yesterday on a Silver Spring woman's allegation that her son did not fire on the police officer who fatally shot him Sunday in a downtown parking garage.

Robin Harris of Silver Spring told the Baltimore Sun that people who were present said her son, Alexander E. Larkin, a 25-year-old soldier from Fort Meade, did not point or fire his gun at Officer Jared Stern, who had come upon an argument between Larkin's friend and another man.

According to police, Stern tried to defuse the argument, then used chemical spray before Larkin opened fire with a .50-caliber handgun. Stern returned fire and struck Larkin multiple times, they said. Larkin was pronounced dead at the scene.

Harris told the newspaper that Larkin "had his gun at his side because he knows not to draw a gun on a police officer." She and her family declined to talk to The Washington Post yesterday, saying they would not comment until they hire a lawyer. Stern is on routine administrative leave.

-- Mariana Minaya

PRINCE GEORGE'S SHOOTING

Youth, 16, Dies; 19-Year-Old Injured

Prince George's County detectives are investigating a shooting in which one Langley Park teenager died and another was injured early Sunday, police said yesterday.

The shooting occurred about 12:30 a.m. in the 8100 block of 15th Avenue. Officers found Ferdy A. Martinez, 16, and a 19-year-old male with multiple wounds, said police Cpl. Clinton Copeland. Both were taken to hospitals. Martinez died soon after, Copeland said. The 19-year-old, whose name was not released, was treated for injuries that weren't life-threatening.

-- Candace Rondeaux