On February 18, 2020, MACo Executive Director Michael Sanderson testified to the House Appropriations Committee in support of HB 621 – County Tax Fairness Act. This bill would delay the requirement for local governments to repay the Local Income Tax Reserve Account for refunds paid pursuant to the Maryland State Comptroller of the Treasury v. Brian Wynne court decision (Wynne case).
From MACo Testimony:
The amount of money owed by counties for the refunds paid pursuant to the Wynne case is extraordinarily high, at around $250 million. Further, litigation over the interest rate applied to these refunds remains on appeal, leaving uncertainty in the final toll for this court decision. Counties appreciate efforts made by the General Assembly in the past to smooth out the severe, deleterious impact of the Wynne case decision over an extended time, and to delay repayments until fiscal 2021. Now that this date is coming near, counties are also being tasked with contributing billions of dollars in additional school funding to cover the local share of the State’s commitment to substantial new education investments. Counties would extremely appreciate this Committee and the General Assembly delaying their obligation to refund the Local Income Tax Reserve Account at the same critical juncture.
Follow MACo’s advocacy efforts during the 2020 legislative session on MACo’s Legislative Tracking Database.