From: Delaware Business Now
An agreement has been hammered out on legislation that will bring tax breaks for many Maryland residents.
The bipartisan agreement will provide $1.86 billion in tax relief over five years for retirees, small businesses, and low-income families. Adjusted for population, the agreement would be the equivalent of Delaware spending about $300 million to fund a similar measure.
Maryland’s legislation was heavily weighted toward tax relief for elderly residents.
Combined with the gas tax holiday Maryland’s legislative session offered $2 billion in tax relief, a release from the governor’s office stated.
Maryland, like neighboring Delaware, is seeing a budget surplus, thanks to pandemic relief measures that were largely borne by the federal government. When combined with surging tax revenues, Maryland now has a $4.5 billion surplus. The Delaware figure is around $1 billion.
Under a recently announced bipartisan deal, Delaware tax filers will get one-time $300 checks this spring, with no long-term relief package surfacing.
“Today, we are announcing the largest tax cut package in state history with major and long-overdue relief for Maryland’s retirees,” said Gov. Larry Hogan. “Cutting our state’s retirement taxes is something we have been trying to accomplish for seven years, and I want to thank the leaders of the General Assembly for working with us to get this done for Maryland’s seniors. This agreement will deliver on our promise to provide real, long-term relief for hard-working Marylanders dealing with inflation and higher prices and help create more jobs and more opportunity to continue our strong recovery.”
This bipartisan tax relief agreement includes the following provisions for the next five years, according to a release from the Maryland governor’s office.
- 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 relief or pay no state income taxes at all. ($1.55 billion)
- The Work Opportunity Tax Credit encourages employers and businesses to hire and retain workers from underserved communities that have faced barriers to employment. ($195 million)
- Family Budget Boosters: sales tax exemptions for childcare products such as diapers, car seats, and baby bottles, and critical health products such as dental hygiene products, diabetic care products, and medical devices. ($115.6 million)