DLS: New Tax Data Reveals Disparity Grant Program Underfunded by $54M

New income tax data reveals the Disparity Grant Program is underfunded by $54 million. The Disparity Grant Program provides noncategorical State aid to low-wealth jurisdictions. It promotes equity across jurisdictions to overcome disparate tax bases -- ensuring that counties, which rely on local income taxes for substantial revenue, can generate sufficient yield to fund schools, public health, public safety, roadway maintenance, and other essential community services. Recent years have seen State-imposed "caps" in this program…

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Counties Oppose Bill to Subvert Homestead Tax Credit

On January 31, 2023, MACo Legislative Director Kevin Kinnally testified in opposition to HB 0073 - Homestead Property Tax Credit - Calculation of Credit for Dwelling Purchased by First-Time Homebuyer before the House Ways and Means Committee. This bill would open up property tax savings under the Homestead Property Tax Credit to be “portable” for specified homeowners. This dramatically undermines the longstanding policy purpose of the credit – to ensure stability in tax bills after purchase.…

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MACo Supports Legislation to Help Residents Avoid Tax Sale

On January 24, 2023, MACo Legislative Director Kevin Kinnally testified before the House Ways and Means Committee in support of HB 0057 - Property Tax - Tax Sales - Requirement to Sell. This bill would grant counties full flexibility in determining the frequency of tax sales, which could help minimize tax collection costs, assist with the payment of overdue taxes, and ultimately allow homeowners to remain in their homes. From the MACo Testimony: MACo strongly…

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Counties Urge Collaborative Approach for Firefighter Recruitment, Retention

On January 18, 2023, MACo Policy Director Kevin Kinnally submitted a letter of information to the Senate Budget and Taxation Committee for SB0094 - Income Tax - Subtraction Modification - Volunteer Fire, Rescue, and Emergency Medical Services. Maryland communities value and rely upon career and volunteer fire and rescue services as primary actors in emergency response. However, social and demographic shifts present career and volunteer fire companies with great difficulty in recruiting and retaining firefighters. Legislation…

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Costly Tax Incentives Preclude Local Input

On January 19, 2023, MACo Legislative Director Kevin Kinnally submitted testimony to the Senate Budget and Taxation Committee in opposition to SB0049 - Income Tax - Subtraction Modification - Retirement Income, SB0076 - Income Tax - Subtraction Modification - Public Safety Volunteers, and SB0083 - Income Tax - Subtraction Modification - Military and Public Safety Retirement Income. The Maryland Association of Counties (MACo) has also submitted written testimony for the cross-file of SB0083—HB0015—on February 2,…

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Counties Support Flexible Tax Incentives

On January 18, 2023, MACo Legislative Director Kevin Kinnally submitted testimony to the Senate Budget and Taxation Committee in support of SB0134 - Property Tax Credit for Disabled Veterans - Established with amendments. This bill would require local governments to grant, by law, a prescriptive property tax credit for specified disabled veterans and surviving spouses. SB 134 is a significant unfunded mandate on county governments. A “local option amendment” would relieve that mandate and allow each…

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MACo to General Assembly: Fix Outdated, Confusing Notice Requirements

On January 18, 2023, MACo Legislative Director Kevin Kinnally submitted testimony to the Senate Budget and Taxation Committee in support of SB0114 - Property Tax - Constant Yield Tax Rate - Notice Requirements. SB 114 would make necessary and timely changes to outmoded Maryland’s constant yield tax law provisions, allowing local governments to better serve and react to community needs. From the MACo Testimony: While SB0114 keeps the advertisement requirements in place, the bill replaces…

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Counties Support Taxpayer Equity

On January 19, 2023, MACo Legislative Director Kevin Kinnally submitted testimony to the Senate Budget and Taxation Committee in support of SB0122 - Property Tax Exemption - Religious Group or Organization - Third-Party Leases. The House Health and Government Operations Committee will consider the bill's cross-file, HB 0328, on February 22. The bill stipulates that real property owned by a religious group or organization but leased to a third party would not qualify for the…

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County Leaders Discuss Cannabis Implementation in Maryland

Closing out MACo’s Winter Conference, panelists discussed cannabis implementation in Maryland.   Cannabis implementation is set to be one of the biggest topics heading into the 2023 legislative session. With implementation comes a series of still unanswered questions and policy options. As Maryland is set to be one of the first twenty-five states to allow for recreational use, policymakers and stakeholders are still debating what implementation should look like. At MACo's Winter Conference expert panelists discussed…

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Top Issues of 2023 Session: Budget and Fiscal Outlook

With the 2023 legislative session rapidly approaching, MACo is profiling some significant issues that stand to gather attention in the General Assembly's work. Here, we preview Maryland's budget and fiscal outlook. The Constitution of Maryland requires a balanced budget: total estimated revenues must equal or exceed total appropriations. The budget also must reflect any estimated revenue surplus or deficit at the end of the preceding year. Previously, the Maryland Constitution prohibited the General Assembly from…

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