U.S. Solicitor General Backs Maryland In Local Income Tax Case

In a brief to the U.S. Supreme Court, the U.S. Solicitor General, on behalf of the United States, has concluded that the Supreme Court should review the decision by the Maryland Court of Appeals in the case of Maryland State Comptroller of the Treasury v. Brian Wynne.

At issue in this case is whether the failure to allow a credit against the county income tax violates the commerce clause because it discriminates against interstate commerce. Should the Supreme Court not take up this case and the Maryland Court of Appeals decision stand, counties could be faced with refunding more than $190 million in income taxes, plus interest, for prior years and providing approximately $50 million a year in credits prospectively.

As previously reported on Conduit Street, the Supreme Court requested the U.S. Solicitor General to comment on the case in January 2014.  While a definitive time line is not known, now that the U.S. Solicitor General has commented, the Supreme Court will likely decide whether to take up the case before the end of this year’s session. If Supreme Court takes up the case, it will likely be argued in fall of 2014 with a decision any time thereafter.

Additional information on this case can be found on Conduit Street.