MACo Associate Director, Barbara Zektick, provided testimony in opposition to a pair of bills providing for income tax subtraction modifications– House Bill 388, “Income Tax Subtraction Modification –Law Enforcement, Fire, Rescue, and Emergency Services Personnel” and House Bill 196, “Income Tax – Subtraction Modification – Interest Paid On Student Loans,” both before the House Ways and Means Committee on February 8, 2017.
In general, MACo argues that local tax structures should remain a local prerogative. MACo is concerned with the carryover county fiscal effects of this legislation and would prefer approaches that provide local autonomy to determine the best way to provide tax incentives, rather than those that mandate reductions in local revenue sources. This is just one of many bills introduced this session to reduce or adjust the income taxes paid by Maryland residents. The revenue effect of these bills, combined with other subtraction modification bills introduced so far this session, is simply not affordable as a statewide county mandate and could present substantial budget difficulties for any number of counties.
From MACo testimony:
Counties welcome the chance to work with state policymakers to develop flexible and optional tools to create broad or targeted tax incentives, but resist state-mandated changes that preclude local input.
Follow MACo’s advocacy efforts during the 2017 legislative session here.