The Uncertainty of Federal Reform Looms Over Tax Bills

MACo Associate Director Barbara Zektick submitted written testimony to the House Ways and Means Committee in opposition to House Bill 129 and House Bill 296, “Income Tax – Subtraction Modification – Retirement Income of Correctional Officers”, on February 7, 2018.

These two similar pieces of legislation are among a number of subtraction modification bills that would mandate reductions in local revenue by reducing an eligible individual’s taxable income. Due to the clear fiscal impact that these modifications would have on local governments and their ability to provide needed community services, counties generally oppose such changes.

Additionally, the effects from federal tax reform on local and county government revenues are still uncertain.

From MACo Testimony:

MACo suggests that consideration be given instead to providing state tax credits, which do not mandate the depletion of resources from all counties for education, public safety, and needed community services.

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 2018 legislative session here.