Counties Wary of State-Mandated Expansion to Existing Tax Credit

On January 18, 2024, MACo Legislative Director Kevin Kinnally testified before the Senate Budget and Taxation committee in opposition of SB 25- Property Tax Credit- Disabled or Fallen Law Enforcement Officer or Rescue Worker- Alterations. This bill changes the definition of fallen law enforcement officer or rescue worker to include disabled law enforcement officers or rescue workers who have died regardless of their cause of death, extending property tax credit eligibility.

During an afternoon with a substantial series of tax credit proposal, MACo raised its standing concern with the proper decision-making for property tax credits, principally a local government revenue source. As introduced, the bill would substantially expand the current tax credit – though the sponsor at the hearing indicated she supported retaining local control over the revenue systems and was open to amendment language to confirm that approach, if the bill were to advance.

From MACo Testimony:

Counties are concerned with the carryover county fiscal effects of this legislation, as it significantly extends eligibility for an existing credit, increases the value of the credit in specified circumstances, and repeals local authority to administer the credit. Expanding the breadth of this credit will result in a more meaningful fiscal loss than counties anticipated when originally enacting the credit.