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Osiris Therapeutics considers incorporating in Maryland for tax savings
Baltimore Business Journal - by Scott Graham Staff
Here's one you don't read everyday: A company wants to reorganize itself in Maryland to avoid paying some taxes.
Osiris Therapeutics is asking its shareholders to approve a plan for the Columbia biotechnology firm to reincorporate in Maryland - a move the company says could help it save thousands of dollars a year in tax charges.
In documents filed with the U.S. Securities and Exchange Commission on April 1, Osiris said if it reorganizes in Maryland it would be required to pay about $300 annually as a result of being incorporated in the state. That does not include property and corporate income taxes.
But that figures to be far less than what Osiris would pay it if continues to be incorporated in Delaware, the company says in the SEC filing. Delaware charges a franchise tax that cost Osiris $162,050 in 2009. The company estimates that levy could increase to $180,000 in future years.
Company officials also said in the SEC document that they do not anticipate a high cost associated with reincorporating. Osiris would need to file the change with the Maryland Department of Assessments and Taxation. Osiris officials could not be reached for comment.
Osiris' plan comes as state lawmakers and elected officials continue working to shrug off criticism that Maryland is unfriendly to businesses because of taxes levied on them. To help plug budget holes, Maryland increased its corporate income tax rate during a special session of the legislature in November 2007. Meanwhile, a state commission is expected to recommend more changes to business-related taxes later this year.
Osiris' shareholders meeting is scheduled for May 27 at its office in Columbia.
The Columbia stem cell company posted a profit of $15.7 million, or 48 cents per share, in the quarter ended Dec. 31. That's compared with a loss of $7.8 million, or 24 cents per share, for the same period a year earlier.
Osiris (NASDAQ: OSIR) reported revenue of $10.8 million in the quarter, up 75 percent from $6.2 million a year earlier.
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