Mandated Tax Breaks Threaten Local Revenue Security

On February 19, Legislative Director Kevin Kinnally submitted written testimony to the Ways and Means Committee in opposition to HB 857 – Income Tax – Subtraction Modification for Military Retirement Income – Individuals Under the Age of 55.

This bill would increase the amount of a subtraction modification under the Maryland income tax for military retirement income for individuals under 55 years of age.

Counties enter this Session with escalating costs and increasing uncertainty surrounding federal funding streams that directly support local budgets and essential services. At the same time, local governments are continuing to take on new and expanded responsibilities without dependable, recurring revenue sources, making fiscal predictability and stability more important than ever.

From MACo Testimony:

MACo urges the Committee to primarily consider state income tax credits as the best means to incorporate local tax relief into a broader policy. MACo and county governments stand ready to work with state policymakers to craft flexible, optional tools to deliver broad or targeted tax incentives, but resist state-mandated changes that preclude local input.

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