MACo: Counties Should Decide When to Expand Eligibility for Local-Option Tax Credits

On February 15, 2023, MACo Legislative Director Kevin Kinnally submitted a letter of information to the Senate Budget and Taxation Committee for SB 0364 – Property Tax Credit – Dwellings of Public Safety Officers – Retired Personnel.

This bill alters the eligibility for a local property tax credit for public safety officers by extending eligibility to retired individuals.

MACo contends that any state legislation to expand eligibility for existing local-option tax credits, like this bill, should be subject to the discretion of the local governing body. As introduced, SB 364 expands the definition of employees eligible for an existing credit program many local jurisdictions have already adopted. Without clarifying language that this expansion is itself subject to a local option, expanding the breadth of an existing credit may result in a more considerable fiscal loss than counties anticipated when originally enacting the credit.

From the MACo Testimony:

Counties welcome the opportunity to work with state policymakers to develop flexible and optional tools to implement comprehensive or targeted tax incentives, and urge the Committee to grant counties proper flexibility to determine whether expanding an existing local-option property tax credit is in their best interest

The House Ways and Means Committee will consider the bill’s cross-file, HB 0618, on February 21.

More on MACo’s Advocacy:

Follow MACo’s advocacy efforts during the 2023 legislative session on MACo’s Legislative Tracking Database

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