Maryland Senate Advances Bill to Ward Off State Tax Hike

Date: February 27, 2018

Related Content: News Economy Maryland State

Without action from the Maryland General Assembly, state taxpayers would see their state tax bills rise by $1.2 billion next year. This is a byproduct of the new federal tax law signed into law at the end of December 2017, which reduces and eliminates a variety of tax deductions.

The Maryland Senate, however, has passed a bill that would allow Marylanders to continue to take personal exemptions on their state tax returns even though this tax break has been eliminated on federal tax returns. A similar bill is pending in the Maryland House and is sponsored by a majority of delegates.

If this legislation isn’t passed, the state Bureau of Revenue Estimates has calculated that state revenue would increase by $730 million and local government revenue would rise by $490 million. Even with the passage of this bill, Maryland taxpayers could see their state tax bills increase by more than $400 million. Earlier in the legislative session, Gov. Hogan and legislative leaders were working on competing plans to address this issue, however, so more proposals are likely to come.

Related Content: News | Economy | Maryland | State

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