MACo Associate Director Barbara Zektick submitted written testimony in support of Senate Bill 310 before the Senate Budget and Taxation Committee on February 21, 2018 with an amendment to remove the subtraction modification portion of the bill and instead focus on providing the proposed state tax credit.
The bill offers tax incentives for certain cybersecurity companies including a subtraction modification for state and local income taxes of capital gains income related to the sale or other transfer of an investment in one of these companies. MACo supports the initiative to provide tax incentives to businesses, but counties have concerns about the carryover effects that subtraction modification legislation will have on county budgets.
From MACo Testimony:
MACo has no quarrel with the State offering tax incentives to businesses it chooses to incentivize, but is concerned with the carryover county fiscal effects of this and other subtraction modification pieces of legislation. Counties 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.”
Follow MACo’s advocacy efforts during the 2018 legislative session here.