On January 18, 2022, Legislative Director, Kevin Kinnally, submitted testimony to the House Ways and Means Committee in opposition to HB 172 Income Tax – Determination of Taxable Income – Union Dues and Expenses to Influence Collective Bargaining. This bill would require an addition modification under the Maryland income tax for certain expenses to assist, promote, or deter collective bargaining. The bill would also allow a subtraction modification for certain union dues paid during a taxable year.
MACo does not raise policy objections with this goal – county concerns are merely practical and cost-driven.
From the MACo testimony:
State tax incentives should be enacted as “local option” offerings to allow counties maximum flexibility in tailoring local policies to meet local needs and priorities. The State and its local governments already work together here – where the State routinely grants a state-level property tax credit, but then enables county governments to enact their own as a local option.
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.