Costly Tax Incentives Preclude Local Input

MACo Legislative Director Kevin Kinnally submitted testimony to the Senate Budget and Taxation Committee and House Ways and Means Committee in opposition to SB 122 Income Tax – Subtraction Modification – Volunteer Fire, Rescue, and Emergency Medical Services and HB 124 Income Tax – Subtraction Modification for Veterans.

SB 122 would increase the subtraction modification under the Maryland income tax for qualifying volunteer fire, rescue, and emergency medical services members. HB 124 would allow a $3,000 subtraction modification under the Maryland income tax for certain veterans discharged or released under honorable circumstances from active military, naval, or air service of the United States.

MACo does not raise policy objections with this bill – county concerns are merely practical and cost-driven.

From the MACo testimony:

MACo urges the Committee to primarily consider state income tax credits as the best means to incorporate local tax relief as part of a broader policy. MACo and county governments stand ready to work with state policymakers to craft flexible and optional tools to deliver broad or targeted tax incentives but resist state-mandated changes that preclude local input.

Follow MACo’s advocacy efforts during the 2022 legislative session on MACo’s Legislative Tracking Database.

Learn more about MACo’s 2022 Legislative Initiatives.

Read more General Assembly News on MACo’s Conduit Street blog.

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