House Exempts Lockheed Martin from Paying Tax

April 9, 2013

The Maryland House of Delegates gave final approval Monday, 101 to 36, to a measure exempting Lockheed Martin from paying about $450,000 a year in hotel taxes to MontgomeryCounty related to a training center that the giant defense contractor operates in Bethesda.

Supporters of the measure, which had passed the Senate, argue that the lodging facilities at the center are not a hotel and that the action was consistent with a decision the General Assembly made in 2010 to exempt it from state sales taxes.

But critics say the state legislative action defied the will of a majority of the Montgomery County Council, which is on record opposing the tax break.

The bill now goes to Gov. Martin O’Malley (D) for his signature.

The House also gave final approval, 117 to 18, to a bill sponsored by O’Malley that seeks to attract additional investments in Maryland infrastructure through public-private partnerships. A similar measure failed last year. This year’s bill, which had passed the Senate, now goes to O’Malley.

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