Governor O’Malley’s FY 2013 proposed budget includes a shift of $239 million in teacher pension costs to county governments. A recent Washington Examiner article explains what the teacher pension shift to county governments will mean to taxpayers.
What does this mean for taxes?
O’Malley proposes eliminating income tax deductions for people earning more than $100,000, effectively increasing income taxes for those residents at both state and local levels.
The increased costs to local governments could also necessitate sales and property tax increases down the road, said Warren Deschenaux, director of the state Department of Legislative Services
In Montgomery County, local officials have begun pointing to an energy tax increase that could raise $100 million in revenue if it is extended beyond its scheduled June expiration date.