MACo Associate Director, Barbara Zektick, testified in opposition to Senate Bill 193, “Income Tax – Interest Rate – Wynne Case”, before the Senate Budget and Taxation Committee on January 31, 2018.
Generally, this legislation would allow for interest payments to compensate individuals that overpaid on their income taxes and were afforded a refund according to the Maryland State Comptroller of the Treasury v. Brian Wynne case. However, this bill would also establish an interest rate that is nearly four times the “market” interest rate that would fairly compensate those who have been affected.
From MACo Testimony:
MACo does not contest the need to refund taxpayers based on prior overpayment, and to compensate them fairly with interest. The General Assembly’s actions in 2014 anticipated this eventuality – and correctly determined that these cases merited reasonable, but not punitive, compensatory interest payments.
This bill creates an unwarranted windfall to taxpayers who have suddenly benefitted from an unexpected court ruling, at the expense of other taxpayers and local services.”
Follow MACo’s advocacy efforts during the 2018 legislative session here.