Proposal Will Return Any Additional State Revenues to Negatively Impacted Maryland Taxpayers
Governor Larry Hogan announced that the administration will be submitting legislation to mitigate potential negative impacts of federal tax reform on Maryland taxpayers. The legislation will return any additional state revenue received due to the loss of federal deductions and exemptions.
The governor made the following statement at a meeting of the Board of Public Works at the Maryland State House:
“As you all know, it looks like the federal tax reform effort may soon be officially signed into law. Its exact impact on the State of Maryland has not yet been determined. It’s clear that some people’s taxes will go down, and some will go up. I know that Comptroller Franchot and his team will be doing an analysis to determine how Maryland taxpayers will be affected. However, it is very clear that due to the loss of several longstanding federal tax deductions and exemptions, Maryland state revenue will likely increase by hundreds of millions of dollars.
“I am announcing today that our administration will submit legislation that will protect our taxpayers, and which will mitigate negative impacts of these changes to state taxes. Our goal will be to leave that money in the pockets of hardworking Marylanders. I am confident that our partners in the General Assembly who have expressed concern over the impact of this tax reform bill will support us unanimously in protecting Marylanders who could be negatively affected. Protecting taxpayers should be a bipartisan issue.”