Tidying Up Tax Credits: Counties Usually Administer Their Own

MACo Associate Director Barbara Zektick testified in support of House Bill 89, “Property Tax Credit – Public Safety Officers – Administration”, before the Senate Budget and Taxation Committee on March 27, 2018. The bill shifts administrative responsibilities from the State Department of Assessment and Taxation (SDAT) to the counties.

Counties usually handle the administration of property tax credits that they are responsible for offering. This legislation simply places the administrative nature of this tax credit in line with others and gives this responsibility back to the counties.

The House passed the bill 135-0.

From MACo Testimony:

SDAT does not generally perform administrative duties for tax credit programs like this, and does not administer the public safety officer tax credit for Baltimore City. Counties prefer to exercise control over administrative functions pertaining to their own tax credits – particularly ones like this, where credit duration, amount, and eligibility requirements may vary from county to county. This is especially true considering that counties must reimburse SDAT for expenses incurred for performing these administrative functions. Counties prefer to manage these administrative functions, and their respective costs, themselves. SDAT’s involvement in this particular case merely adds intergovernmental bureaucracy where it is not necessary.”

For more on this and other legislation, follow MACo’s advocacy efforts during the 2018 legislative session here.