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…

On February 19, Legislative Director Kevin Kinnally submitted written testimony to the Ways and Means Committee in opposition to HB 761 - Income Tax - Subtraction Modification for Military Retirement Income (Keep Our Heroes Home Act). This bill would increase the existing maximum subtraction modification for military retirement income. MACo opposes state-mandated reductions in local revenue sources, but county governments welcome flexible, optional tools to serve and respond to local needs and community priorities. From…

On February 19, Legislative Director Kevin Kinnally submitted written testimony to the Ways and Means Committee in opposition to HB 707 - Income Tax - Subtraction Modification - Retirement Income. This bill would allow certain individuals over 65 and certain disabled individuals to deduct certain types of retirement income from their taxable income. The bill proposes a three-year phase-in that would eventually allow eligible residents to deduct 100% of their qualified retirement income by the…

On February 19, Legislative Director Kevin Kinnally submitted written testimony to the Ways and Means Committee in opposition to HB 653 - Income Tax - Subtraction Modification for Public Safety Retirement Income - Amount.  This bill would increase the state income tax deduction for retired public safety officers. This change would be rolled out gradually over five years to provide incremental tax relief to eligible retirees. In general, MACo stands for local self-determination. Counties, led…

On February 18, Legislative Director Kevin Kinnally testified before the Budget and Taxation Committee in support of SB 427 - Property Taxes - Authority of Counties to Establish a Subclass and Set a Special Rate for Personal Property of Data Centers.  This bill authorizes county governments and Baltimore City to create a separate personal property subclass for qualified data center personal property and to apply a special tax rate. As data center development expands across…

On February 17, Legislative Director Kevin Kinnally testified before the Ways and Means Committee in support of HB 840 - Property Tax - Credit for Commercial Buildings Rented to Small Businesses. This bill authorizes local governments to grant, by local law, a property tax credit for commercial buildings rented (or rented-to-own) at fair market value to small businesses located in an Arts and Entertainment District or a Main Street Maryland community. Counties support small business…

On February 17, Legislative Director Kevin Kinnally testified before the Ways and Means Committee in support of HB 805 – Building Homes Act. This bill authorizes local governments to grant, by local law, a property tax credit for specified affordable dwellings supported through nonprofit mortgage financing and long-term affordability protections. This bill would provide counties with a flexible, locally controlled tool to help close financing gaps and expand access to sustainable homeownership, while ensuring properties…

On February 17, Legislative Director Kevin Kinnally testified before the Ways and Means Committee in support of HB 753 - Tax Sales - Homeowner Protections - Revisions with amendments. This bill proposes various changes to Maryland’s tax sale system that aim to bolster homeowner protections and expand access to the Homeowner Protection Program. MACo supports the bill’s overall goal but urges amendments to avoid a significant unfunded mandate and to protect enterprise funds for water…

On February 17, Legislative Services Director Kevin Kinnally submitted written testimony to the Economic Matters Committee in opposition to HB 652 - Property Tax - Homestead Property Tax Credit - First-Time Homebuyer. This bill establishes a new Homestead Property Tax Credit for first-time homebuyers. Promoting homeownership is a worthwhile goal. However, this bill imposes a significant unfunded mandate on county governments by requiring new property tax relief without local authority, local flexibility, or offsetting revenue.…

On February 17, Legislative Director Kevin Kinnally submitted a letter of information to the Ways and Means Committee on HB 644 - Property Tax - Exemption for Dwellings of Surviving Spouses of Disabled Veterans - Application.  This bill expands Maryland’s property tax exemption for the surviving spouses of deceased veterans. As property taxes are the primary funding source for county governments, any State-mandated expansion of exemptions has direct local fiscal consequences. From MACo Testimony:  The…