When Do State Tax Changes Spill Over Into County Budgets?

As the 2017 session ramps up, talk of state tax changes have filled the headlines. A level deeper, though – what state tax decisions might have direct or carryover effects on county budgets?

A quick primer:

PERSONAL INCOME TAXES

The state income tax is the top source of general revenue, and the biggest overall target for policy changes. Since county tax rates are independent of the state rates – counties are affected by some state changes, but not all of them. In essence:

  • changes to state tax rates do not affect counties, since they don’t affect a taxpayer’s taxable income
  • changes to deductions (called “subtraction modifications”) affect the taxable income base, and do flow through to county revenues

CORPORATE INCOME TAXES

As the state discusses business competitiveness, the corporate income tax rate has also taken center stage. The corporate income tax is virtually all state revenue, with only a small sliver being shared through the Highway User Revenues distribution. There is no major direct sharing of corporate taxes, nor any counterpart county-level taxation of corporate profits.

REAL PROPERTY TAXES

Taxes on real property (land and buildings) are a fairly minor state revenue, with the revenue dedicated to the state’s annuity bond fund (to pay debt service). The state rate is 0.112 (or 11.2 cents per $100 of assessed value) – which is roughly a tenth of the typical county rate. Property taxes are a much larger part of county budgets than the state – both as a share of the county budget and in total dollars.

PERSONAL PROPERTY TAXES

Maryland’s taxation of business personal property (equipment and some inventory) is completely local, with most counties levying a tax but granting several major exemptions authorized (but not mandated) by the state. The state receives no direct revenue from personal property taxation.

In the discussion of small business tax relief during the 2015 session, the taxes due on personal property was dwarfed (for many small businesses) by the state-levied filing fee for corporate entities. Governor Hogan has proposed a reduction in those fees.

OTHER TAXES

Amidst the discussion of tax policy, other items come up – with details arising from case law, taxpayer concerns, or legislative proposals. Many of these are a mix of state and local revenues, but hardly any have the “carryover” effects that the income tax and property taxes do.

State “sin taxes” on products like alcohol and tobacco do not have a local component (local distributions were abolished in the early 1990s), and some functions like the hotel tax and admissions and amusements tax are exclusively local.

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In 2015, facing a wide range of proposed changes to state and local taxes, MACo adopted a general statement on tax matters – expressing a preference for local flexibility, rather than mandated participation in state changes.

MACo offers thanks to readers who have found this analysis useful, and sought to have it run again.

Gov. Hogan: Proposed $17.1B Budget Will Curtail Future Spending

Governor Larry Hogan proposed a $17.1 billion budget Tuesday that he says is balanced, reins in spending and provides full funding for education.

In a news conference at the State House, the governor outlined broad details of the budget that will be released Wednesday.

According to The Baltimore Business Journal,

Repeating comments he made last week at a General Assembly kickoff event, Hogan said investment into the state’s Rainy Day fund will help make up for lower-than-expected revenue.

“Because of the fiscal restraint we have instituted over the past two years, while many other states are facing crippling budget shortfalls, we are in much, much better shape than we would have been,” Hogan said.

Funding formulas enacted by the legislature in the past are accounting for a $519 million increase in mandated spending, the Republican governor said. Despite that, he said his budget provides a record $6.4 billion for education without increasing taxes, including $334 for school construction. Total spending will be down from last year.

The administration’s capital budget limits borrowing to $995 million, which Hogan said will be necessary to keep the state’s debt service payments from rising out of control. Next year, he said, the state will be forced to spend more on debt service payments than on school construction.

Read the full article for more information.

Earned Income Tax Credits On The Rise

There is a bipartisan trend toward creating or expanding matching programs tied to the federal earned income tax credit (EITC), reports GoverningNew Jersey, Oregon and Rhode Island all expanded their programs this year, and only a few eliminated or cut back their programs to make ends meet during the recession. From the article:

State matches act as a small boost to the federal EITC, which lets low-income workers apply a credit against the taxes they owe. If the credit is worth more than their taxes, workers get to collect the difference. In 2015, about 28 million Americans benefited from nearly $66 billion in refunds from the federal EITC program. Most of the recipients are parents with dependent children.

Twenty-six states and the District of Columbia offer an additional credit, ranging from a 3.5 percent match in Louisiana to a 40 percent match in Washington, D.C.

The EITC is a rare antipoverty program that has enjoyed a long history of bipartisan support. The national poverty rate has been stuck at about 15 percent for the past four years and is higher than at any point in two decades. Economic research suggests that the EITC encourages single mothers to work and to increase their incomes over time. Seven consecutive presidents, including President Obama, have expanded the federal credit in some way.

Maryland increased its percentage match of the federal credit from 25 percent to 26 percent since 2013, and has scheduled several years of increases to reach 28 percent by 2018, Governing reports. This year, states considered more than 170 EITC-related bills, according to the National Conference of State Legislatures. Twenty-six states and the District of Columbia offer a percentage match to federal earned income tax credit program.

Committee Hears Recommendations On Reducing Revenue Volatility

State officials have some ideas about how to insulate the State budget from volatile revenue streams – and those ideas will likely materialize in the form of legislation this session.

On Thursday, January 12 in the Senate Budget and Taxation Committee, the Department of Legislative Services (DLS) reported on revenue volatility, drawing largely from the Report on Revenue Volatility and Approaches to Reduce Risk to the State Budget, issued last November by DLS, the Department of Budget and Management (DBM), and the Comptroller of Maryland in response to a requirement set by the General Assembly last session. The requirement asked the three agencies to “examine the volatility in Maryland’s revenue structure and recommend an approach to reducing volatility.”

Income and sales taxes account for 80 percent of general fund revenue. Gross receipts for income tax can be broken down into two categories – payroll withholding and nonwithholding. Nonwithholding receipts account for about 22 percent of income tax gross receipts, on average. DLS staff members showed committee members the graph, Inflation-adjusted Year-over-year Percent Change of income and sales tax gross receipts from Fiscal 1987-2016, pointing out significantly increased volatility in nonwithholding gross receipts following the Great Recession.

Capital gains make up about 25 percent of nonwage income.  DLS pointed out a table of Maryland Taxable Capital Gains Income which shows how the top 0.1 percent of Maryland income earners – about 2,500 returns – contributed approximately half of the state’s total capital gains income. This contributes to the revenue source’s volatility.

The working group responsible for the Revenue Volatility report looked into how other states take efforts to help insulate their budgets from the volatility of revenues. In Delaware, the general fund budget is limited to 98% of available revenues. A few states apply a limit to the revenue estimate itself. In Michigan and Missouri, revenues are limited to a certain percentage of the prior year’s state personal income. While not altering the revenue forecast itself, California and Massachusetts have sweeper provisions in statute tied to tax revenue from capital gains income. California recently adopted a system that also sets aside excess revenue from capital gains income in a reserve fund.

Virginia has taken a different approach, focusing on nonwithholding income tax revenue rather than capital gains specifically. Rather than a sweeper provision, Virginia puts a cap on their estimate of nonwithholding income tax revenues, referred to as a collar.

The point of the collar is to dampen/lower the revenue estimate, potentially increasing the likelihood that the revenue estimate will be exceeded ( or miss will be smaller) and at the same time, lowering allowable (ongoing) spending. This helps reduce the potential or magnitude of budgetary shortfalls.

DLS analysts told the Senate Budget and Taxation Committee that they were “enamored with the Virginia model.” The working group recommended that Maryland limit estimates of nonwithholding income tax revenues at a pre-established cap, or collar. To estimate the cap, the State should determine the average share on nonwithholding revenues to total General Fund revenues – approximately 15 percent, according to the average over the last 10 years. DLS pointed to its Impact of Collar on Closeout General Fund Revenues, Fiscal 2011-2016, to show how such a cap, or collar, would have prevented revenues falling below estimates over the past six years.

Any extra revenue that comes in over and above the estimates should be targeted for “fiscally responsible activities”: expanding PAYGO capital or paying for unfunded liabilities. This would help promote long term structural balance and soften any negative impact of future recessions.

Finally, the work group recommended increasing the balance in the Rainy Day Fund to 10 percent of General Fund revenues. The State must maintain a minimum fund balance at 5 percent to maintain its AAA bond rating, DLS staff members testified. At 10 percent, the State could draw from the extra cushion during tougher times.

Answering questions from committee members, DLS testified that in upcoming weeks, the Department would be presenting analysis and recommendations for addressing risks of Affordable Care Act and Federal workforce changes coming out of the new presidential administration. They also suggested that legislation be passed to implement the above-mentioned recommendations – and stated that a bill was already being drafted for introduction.

Find the Report on Revenue Volatility and Approaches to Reduce Risk to the State Budget here.

The committee hearing can be viewed here.

Governor Enters Session Prioritizing Job Creation, Training

Governor Hogan has announced a package of legislative proposals he will be pushing this session to incentivize manufacturing jobs and workforce training programs, specifically targeting parts of the state experiencing higher unemployment. The 2017 Maryland Jobs Initiative will provide incentives to create thousands of jobs and five million dollars worth of investment in education and workforce training, according to the Governor’s press release.

The More Jobs for Marylanders Act, the “centerpiece of the initiative,” would eliminate all state taxes for ten years for new and expanding manufacturing employers that create jobs in high unemployment areas. It also enables companies to accelerate the deductions of their capital assets to free up capital for investment in new technology needed to create the jobs of the future. Qualifying jurisdictions currently include Baltimore City and Allegany, Dorchester, Somerset, and Worcester counties.

The Administration also plans to open six new Pathways in Technology Early College (P-TECH) high schools throughout the state. P-TECH blends high school, college, and work experience into one program where graduates obtain a two-year associate degree in a STEM career field at no additional cost.

The Governor plans to spend one million dollars on a program that encourages employers to invest in employee training, and make three million dollars available in cyber job training grants. Finally, the package improves the existing Cybersecurity Investment Incentive Program by making tax credits accessible to investors in cybersecurity startups.

The Baltimore Sun reports:

Hogan proposed a version of the manufacturing incentives bill last year, but it died in the General Assembly. This year’s bill eliminates the most controversial part of last year’s legislation: a provision allowing workers at new manufacturing companies to be exempted from paying state income tax for several years.

Existing manufacturing companies balked at that provision, saying their workers might flee to new companies to get the generous tax break.

Last year’s bill — including the income tax break for workers — would have cost the state a “significant” amount of revenue, according to a nonpartisan analysis by the state Department of Legislative Services. …

Sen. Roger Manno, a Montgomery County Democrat, sponsored a similar bill last year that also failed. He said Thursday he’s working on a new version for this year and has not discussed manufacturing incentives with the governor’s office. …

Manno said he’s tried to keep his bill nonpartisan. Of the state’s 47 senators, 43 co-sponsored his bill last year. Those sponsors included Democrats and Republicans.

Last session, MACo supported both the Governor’s and Senator Manno’s bills with amendments. Amendments sought on the Administration’s HB 450/SB 386 would have given local governments a more defined role in the designation of a manufacturing empowerment zone, established broader criteria to be used in the designation of the zone, and provided greater flexibility over the incentives drawn from local revenues – specifically, property tax credits. Amendments sought on Senator Manno’s HB 531/SB 181 would have expanded the definition of manufacturing and provided greater flexibility over the incentives drawn from local revenues. Under this bill, local governments determined the zones and applied to the Department of Economic Competitiveness and Commerce for the designation.

More information on MACo’s efforts on last session’s bills on Economic Development Tax Credit Programs is available here.

Short-Term Residential Rentals Regulation: What’s Next?

In this year’s annual publication, Issue Papers: 2017 Legislative Session, the Department of Legislative Services (DLS) details the emergence of short-term residential rentals and how tax requirements are regulated in Maryland – calling attention to the fact that counties and municipalities throughout the state are considering how to regulate this relatively new phenomenon.

The term “short-term residential rentals” or “STRRs” refers to the recent trend of homeowners renting their property for short periods of time via an online platform/marketplace, which charges guests a fee per rental. Popular such online platforms include Airbnb, Flipkey, Homeway, and VRBO.

Last session, the Senate Budget & Tax and House Ways & Means committees considered  SB 776 / HB 1361, Hotel Rental Tax and Sales and Use Tax – Limited Residential Lodging, a complicated bill seeking to tax online hosting platforms – with the online company “Airbnb” taking center stage in the policy debate. MACo supported the bill with amendments to correctly identify commercial transactions and the appropriate components of the taxable base, to limit the administrative costs of state regulation to those direct and reasonable costs attributed to its collection, preserve local action already in place and not override or pre-empt this action, and explicitly rule out any inadvertent preemption of local zoning, safety ordinances, code requirements, or other matters traditionally and properly the province of local governments. After the hearings, no further action was taken by either committee. It is anticipated that legislation on this issue will re-emerge this session.

From the report:

Various large and small cities throughout the country regulate STRRs. According to the Short Term Rental Advocacy Center in terms of statewide laws, Florida enacted a measure in 2011 that prohibits a local government from passing any new law that bans STRRs. This law was amended in 2014 to allow some limited regulation by cities. Arizona enacted a similar statewide ban earlier this year, and while the New York legislature also passed a similar statewide ban, the measure has not yet been signed into law.

The rental of a house or a room in a hotel, motel, bed and breakfast, or house is generally subject to the State sales and use tax and a county hotel rental tax. A limited number of municipalities also impose a hotel rental tax. A municipal hotel rental tax applies in a similar manner to the county hotel rental tax for the county in which the municipality is located. A house or room rented in a house through an online marketplace is generally subject to the State sales and use tax. Under a county hotel rental tax, the particular definition of hotel and the language applying the tax will impact the taxability of a transaction completed through an online marketplace.

The 6% State sales and use tax is imposed on an accommodation, defined as a right to occupy a room or lodging as a transient guest. A room in a hotel, motel, B&B, or house offered for rent satisfies this definition for State sales and use tax purposes. Airbnb is a STRR that allows people to list and find houses or rooms for rent. It is likely that the Comptroller will consider an online marketplace such as Airbnb that facilitates the sale or use of a house or room to be an intermediary. As an accommodations intermediary, Airbnb is required to collect and remit the State sales and use tax on the full amount of the consideration paid by a buyer for the sale or use of an accommodation. The Comptroller’s Office requires an entity or individual that rents a home or part of a home as a transient accommodation to remit the State sales and use tax. The Comptroller’s Office advises that entities that advertise or otherwise make known to the public that transient accommodations are available to rent, are more easily identifiable then individual homeowners providing such accommodations.

Each county has the authority to impose a hotel rental tax with rates ranging from 3.0% to 9.5%. The authority to impose the hotel rental tax varies depending on how the authority is granted. There are two variations in county hotel rental tax laws that may impact the application of the tax to a transaction made through an online marketplace like Airbnb. A transaction through Airbnb may be excluded either because the facility does not meet the definition of hotel or the hotel rental tax provisions exclude the type of transaction.

The individual or entity required to collect the hotel rental tax and the charge on which the tax is paid vary by county. In the majority of the counties, Airbnb does not meet the statutory definition of a hotel and is, therefore, not required to collect the tax. If an online marketplace is not required to collect the hotel rental tax, the establishment offering the rental may still be required to collect and remit the hotel rental tax. Five counties and Baltimore City have adopted provisions addressing the issue of intermediary sales through online marketplaces (Anne Arundel, Baltimore, Harford, Howard, and Montgomery).

2017 Property Tax Assessments Reflect Modest Recovery

The State Department of Assessments and Taxation (SDAT) has completed its 2017 reassessment of one-third of all residential and commercial properties across the state: and found an average increase in property values of 8.2 percent since that group’s last assessment in 2014. This marks the group’s largest increase in value since 2008 – reflecting a trend in recent years of the tax base regaining increments of the massive value drops suffered during the “great recession.”

SDAT mailed out property tax assessment notices to affected property property owners on Wednesday, December 28. SDAT assesses all real property in the state – more than two million accounts – in three-year cycles, and this year’s properties are known as “Group 2.” A map of which properties fall into Groups 1, 2, and 3 and their respective years for reassessment can be viewed here. Additional statistics and information are available here.

From SDAT’s press release:

The 2017 assessments for the 758,749 properties in Group 2 were based on an evaluation of 68,757 sales that occurred within the group over the last three years. If the reassessment resulted in a property value being adjusted, any increase in value will be phased-in equally over the next three years, while any decrease in value will be fully implemented in the 2017 tax year. For the 2017 reassessment, 71.4% of Group 2 residential properties saw an increase in property value. Statewide, all real property values increased by an average of 8.2%, which represents an average increase of 6.4% for all residential property and 13.6% for all commercial property.

As reported in The Baltimore Sun:

While home values continue to recover slowly, commercial values leapt about 14 percent in the new assessments, reflecting business activity spurred by economic growth.

About 71 percent of residential properties included in this round saw assessments increase, continuing an upswing that started in 2013. The gains were strongest in counties near Washington and Baltimore, while assessments in more rural areas, like the Eastern Shore, showed little change and, in some cases, declined.

Read the The Baltimore Sun articlewhich quotes MACo Executive Director Michael Sanderson.

Two counties saw Group 2 property value increases in the double digits: Prince George’s by 13.5 percent, followed by Anne Arundel, by 12.4 percent. Prince George’s experienced the largest increase in residential property values at 14.2 percent, while Anne Arundel saw the greatest increase in commercial property values at 21.1 percent. It deserves noting that Prince George’s also saw the largest declines statewide in Group 2 assessments in 2011 at 28.7 percent. (Prince George’s Group 2 residential property owners with Homestead Tax Credits will not have to worry about higher tax bills this year, however: their credit caps growth of their assessments at zero percent for the current fiscal year.)

Five counties saw property values decrease since 2014: Allegany, Caroline, Kent, Somerset, and Talbot. Somerset saw the largest decrease of 6.4 percent. Reports delmarvanow on the Somerset decrease:

“This was not totally unexpected,” said Crisfield Mayor Kim Lawson, who was expecting a decrease in property values as high as 10 percent.

Earlier this year, Lawson said he asked the City Council to support a $500,000 borrowing resolution to pay for street repairs, but when he got word that assessments were headed downward he asked to withdraw it. …

The reassessed area [in Somerset] included Crisfield, Marion Station and Smith Island.

“Crisfield is unpredictable, especially after Hurricane Sandy,” said Gene Adkins, Somerset County’s finance director. “We’re not totally surprised by it.”

Somerset County was not hit as hard as other parts of Maryland by the recession in 2008, but it is the last to come out of it, Adkins said. Last year, the county saw a 5.2 percent decrease in a large rural area that stretches from south of Princess Anne to the Pocomoke River and includes Westover, Fairmount, Marion Station and Rehobeth.

The Princess Anne area will be assessed next year, and Adkins said he hopes to see Somerset County’s numbers finally increase.

SDAT’s press release includes several helpful breakdowns of county-specific assessment data.

MACo hosts a meeting between county finance officials and State assessments and revenue forecasting experts on Friday, January 6 to discuss the latest property tax assessments. County officials may contact Barbara Zektick, MACo Associate Director for more information about this meeting.

Baltimore County’s Hotel Tax to Boost Tourism Promotional Budget

The Baltimore County Council has approved legislation to give eight percent of its hotel tax collection to the tourism office to be used for its promotional budget. Currently, Baltimore County tourism has $125,000 in its promotional budget. This law will allow approximately $800,000 to go to tourism promotions.

enjoy-balt-coAccording to The Baltimore Sun,

The county takes in nearly $10 million annually in hotel taxes, so the bill approved last week would reserve about $800,000 to promote tourism. The legislation takes effect July 1.

Baltimore and Anne Arundel, Harford and Howard counties already dedicate portions of their hotel taxes to promoting tourism. Baltimore County Council Chairwoman Vicki Almond said it made sense to follow their lead.

The Reisterstown Democrat introduced the legislation and lined up Democratic and Republican co-sponsors. The measure passed unanimously.

Almond said the county’s tourism spots — from the waterfront to main streets to rapidly urbanizing Towson — are “underutilized.” She said they will benefit from an infusion of marketing dollars.

“By allocating money to tourism, we are generating new revenue for the county without placing additional burden on our residents,” she said.

Baltimore County Executive Kevin Kamenetz was not keen on mandating how part of the hotel tax should be used, a spokesman said. But he did not oppose the bill because he supports tourism.

Washington County Approves Tax Deal for Solar Power Project

Another proposed solar project in Washington County has received a payment in lieu of taxes, or PILOT, agreement with county officials.

Pinesburg Solar is proposing an approximately 7-megawatt solar array on about 60 acres at 14868 Schetrompf Lane, east of Bottom Road in the Pinesburg community northwest of Williamsport.

The project calls for a capital investment of $16 million to $18.5 million, according to a Maryland Public Service Commission filing.

According to The Herald-Mail,

The Washington County Board of Commissioners voted 3-0 on Dec. 13 to approve the PILOT agreement with Pinesburg Solar that calls for the company to pay $6,000 per megawatt for 30 years in lieu of business personal property taxes, according to county documents.

The 30-year term is the length of the project’s ground lease, which works out to $42,000 a year or $1.26 million total in payments to the county, the documents said.

In November, the county also approved a PILOT agreement with Coronal Energy for an 18.3-megawatt solar array on about 170 acres along Mason Dixon Road near the Pennsylvania line.

That 20-year agreement works out to $2.2 million or about $110,000 annually for the county.

The deal prevents the company from facing a large expense upfront on county personal property taxes and evens out the payments to the county over several years, Divelbiss said.

The solar equipment would have been subject to a county personal property tax on 50 percent of its value.

The PILOT agreement, including taking into account depreciation on the equipment, represents a 35 percent reduction from what Pinesburg Solar would have paid the county otherwise, the documents said.

County Administrator Greg Murray told the commissioners that the deal secures a steady stream of revenue for the county — revenue the county doesn’t usually get consistently from that kind of property.

The 60 acres for the solar array is spread among a 165-acre parcel that includes some existing woods between the two sections of planned panels, according to Divelbiss and a conceptual site plan.

The project also would contribute toward Maryland’s Renewable Portfolio Standard, whose goal is to move the state “toward 20 percent renewable energy production by 2022,” the Maryland Energy Administration’s website said.

Pinesburg Solar is a subsidiary of Pennsylvania-based Community Energy Solar, which is working on other solar projects in the county.

One of Community Energy Solar’s subsidiaries is Perennial Solar, which is proposing a solar array on about 86 acres of Cearfoss farmland near the intersection of Md. 63 and Md. 494, which has drawn opposition from nearby residents concerned about their rural views and safety risks.

The project led county government to file an appeal in July that opposes a Washington County Circuit Court decision to allow the state Public Service Commission to be the sole regulatory agency for large solar projects in the county.

Perennial Solar’s attorney had filed a motion in circuit court arguing that the PSC, rather than the county Board of Zoning Appeals, should have jurisdiction over the matter.

Read the full article for more information.

Energy Facility Siting is one of MACo’s legislative initiatives for the 2017 session. For decades, the state has exercised a very narrow pre-emption of local planning and zoning authority for major power plants, grounded in the need for the larger power grid to receive ample power supply. Recent cases before the state’s Public Service Commission threaten to dramatically widen that principle, applying it to virtually any generation facility, regardless of its size or importance to the regional power grid. A new generation of power facilities – from solar farms to alternative technologies – could be freed up to ignore local zoning and oversight. This decision threatens local land use control — and the important rights of communities to guide their own historic, agricultural, and residential character.

Click here to read energy siting coverage on Conduit Street.

Legislative Panel Approves Northrop Grumman Loan

Maryland lawmakers unanimously approved a $20 million forgivable loan to aerospace giant Northrop Grumman Tuesday, the largest deal of its kind in state history.

The money will not have to be repaid if the company retains 10,000 jobs and proves it spent $100 million buying facilities in the state.

According to The Baltimore Sun,

It is the final piece of a $57.5 million retention package for Northrop, one of the state’s largest employers. The agreement touched off a partisan spat over transparency in business dealings.

Senate President Thomas V. Mike Miller urged his colleagues to vote for the deal, but chided Republican Gov. Larry Hogan’s administration for negotiating it privately. Miller promised he would not support such a deal in the future.

“Ordinarily, this wouldn’t have happened,” Miller told Hogan administration officials at a hearing in Annapolis. “My message to you is that it won’t happen like this again.”

Miller and House Speaker Michael E. Busch, both Democrats, said Northrop’s status as a major Maryland employer and its long-standing relationship with the General Assembly persuaded them to support the deal, despite legislators not being involved in negotiations and despite Hogan, a Republican, not personally seeking the legislature’s support.

Hogan’s spokesman, Doug Mayer, said the governor “absolutely” does not regret negotiating the deal without consulting lawmakers.

The sum is the largest ever to be dispersed from Maryland’s Sunny Day Fund, which was created in 1990 to stimulate big projects.

Before Tuesday’s vote, Northrop Grumman was already the recipient of what was the largest Sunny Day award, according to state records.

In 1998, the company received a then-record $11.5 million in exchange for keeping a division of its company in Anne Arundel County.

More deals are on the way. Hogan plans to use the Sunny Day fund next year to give Marriott $20 million to keep its headquarters in the state. State and Montgomery County officials have offered a package of tax incentives and loans that would total $44 million.

Should the deal be approved, it would be the second time in less than 20 years the state offered incentives to entice the company to stay here.

The Maryland Department of Commerce estimates Northrop’s 10,000 employees generate $42.9 million in state tax revenue per year.

Read the full article for more information.