Md. state officials announce bipartisan tax relief agreement

ANNAPOLIS, Md. – State officials have reached a historic bipartisan agreement to provide $1.86 billion in tax relief over five years for Maryland retirees, small businesses, and low-income families.

Governor Larry Hogan, Senate President Bill Ferguson, and House Speaker Adrienne A. Jones announced the agreement on Monday. Combined with the recent gas tax suspension, this legislative session will deliver nearly $2 billion in tax relief.

The bipartisan tax relief agreement includes the following provisions for Fiscal Year 2023 through Fiscal Year 2027:

  • $1.55 billion: Tax relief for retirees 65 and older making up to $100,000 in retirement income, and married couples making up to $150,000 in retirement income. As a result, 80% of Maryland’s retirees will receive substantial relief or pay no income taxes at all.
  • $195 million: The Work Opportunity Tax Credit to incentivize employers and businesses to hire and retain workers from underserved communities that have faced significant barriers to employment.
  • $115.6 million: Family Budget Boosters, which are sales tax exemptions for child care products such as diapers, car seats, and baby bottles, and critical health products such as dental hygiene products, diabetic care products, and medical devices.

This agreement also makes a one-time record $800 million investment in the Blueprint for Maryland’s Future while maintaining a record level in the Rainy Day Fund. This agreement uses the surplus to make strategic and historic investments that:

  • Support public safety and victims of crime
  • Ensure Maryland’s world-class health system by supporting hospitals, nursing homes, and assisted living facilities
  • Expand Medicaid dental coverage for adults, in-home medical care, and autism services
  • Help families by expanding access to childcare, providing bonuses for public school staff, and increasing student aid at higher education instutitions
  • Spur local economies and job opportunities through capital funds for school construction, affordable rental housing, state facility maintenance, and local transportation infrastructure
  • Protect against the growing threat of cyber attacks
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