Counties: Local Tax Policy Should Remain a Local Option

On January 29, Legislative Director Kevin Kinnally submitted written testimony to the Ways and Means Committee in opposition to HB 13 – Income Tax – Subtraction Modification – Public Safety Employee Retirement Income (Supporting Our 9-1-1 Specialists Act). 

This bill would expand the current income tax subtraction modification for public safety workers, including retirement income for 9-1-1 specialists.

Counties enter this Session facing heightened economic uncertainty, rising costs, and growing concern about federal funding instability that directly affects local budgets and service delivery. At the same time, counties continue to absorb new or expanded responsibilities without reliable, ongoing funding, making local revenue stability more critical than ever.

Counties are eager and committed partners in promoting economic growth and creating opportunity −- and prefer local autonomy in determining the best way locally. The Maryland Association of Counties (MACo) opposes state-mandated reductions in local revenue sources, but welcomes flexible, optional tools to serve and respond to local needs and community priorities.

From 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, enabling county governments to enact their own local-option property tax credits.

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