The Comptroller’s Office has released details on the October distribution of the local income tax to counties, with this year’s distributions 25 percent higher than they were last year at this time. The October distribution is composed of two parts related to revenues received in the second half of fiscal year 2016: the local share of delinquent tax receipts from tax year 2014 and before, and the local share of fiduciary payments.
Delinquent tax distributions increased by 25.4 percent over last year’s October distribution, to a total of $154.6 million. According to the Comptroller’s Office, delinquent receipts have increased due to tax amnesty and a program by the Motor Vehicle Administration (MVA). Tax amnesty included some payment plans that extend through December 2016, resulting in some payments attributable to the October distribution. An MVA program established in fiscal 2012 prevents the renewal of driver’s licenses and motor vehicle registrations if the driver has an outstanding tax liability – which has also increased delinquent payments.
Fiduciary income tax distributions to local governments for the second half of the fiscal year increased by 22.1 percent, or $17.9 million. Since the local income tax of fiduciaries is distributed to the jurisdictions where the tax is administered, only a few counties receive the lion’s share of this revenue: namely, Baltimore County, Baltimore City, and Montgomery County, which all saw this revenue increase by at least 22.3 percent over last year.