On January 29, Legislative Director Kevin Kinnally submitted written testimony to the Ways and Means Committee in opposition to HB 201 – Income Tax – Tips or Gratuities – Subtraction Modification (No Income Taxes on Tips Act).
This bill creates a tax deduction for tips or gratuities earned in specific jobs, such as working in a restaurant, bar, or hotel, or providing taxi or passenger services.
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.
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.
More on MACo’s Advocacy:
