MACo Associate Director, Barbara Zektick, delivered written testimony in opposition to Senate Bill 650, “Income Tax Subtraction Modification – College Savings Plan Accounts – Contributions (College Savings Tax Enhancement Act)” to the Senate Budget and Taxation Committee on February 28, 2018.
Counties are concerned with the effects that further subtraction modifications would have in a time when the effects of federal tax reform on the state are still unclear and what the crossover fiscal effects to the county from the state through this subtraction modification would be.
From MACo Testimony:
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.
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. State tax credits not only relieve counties from shouldering the burden of the costs for these benefits, but they also provide a benefit to eligible filers who do not itemize their deductions on their returns.
The effects of tax reform are particularly relevant for this bill, because the federal legislation significantly broadened applicability of savings plans targeted in this bill – which means that the true fiscal impact of SB 650 is especially unforeseeable at this time.”
Follow MACo’s advocacy efforts during the 2018 legislative session here.