Often during legislative Sessions I have to share bad news or things that I'm fighting to stop - and this year has certainly been no exception! However, I like to be able to share good news with you and I actually have some. For several years, I and many of my Republican colleagues, along with Governor Hogan have been trying to eliminate the tax on retirement income in the State of Maryland. This week the Senate and House of Delegates didn't go all the way there but did pass some significant tax relief in that area as well as changes to the sales tax to exempt more products. It ends up being about $1.8 Billion in annual tax relief. Here's some of the details:
Tax Relief for Retirees: Retirees that are 65 and older making up to $100,000 in retirement income, and retired married couples making up to $150,000 in retirement income will be getting a $1,000 subtraction modification, meaning that amount would come off of the taxes they would owe. About 80% of Maryland’s retirees would end up paying very little or no state income taxes at all because of this change that will go into effect in the next tax year. It's $1.6 Billion tax cut over the next five years and it is a permanent change.
Military Retirement Relief: Legislation passed the Senate floor this week to increase additional exemptions on military retirees from the first $15,000 of income to the first $20,000.
Sales Tax Exemptions to help Working Families and Seniors: Multiple sales tax exemptions have been passed 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.
More Good News - District 5 Team Secures Additional Funding for Critical Infrastructure Improvements in Carroll County:
This week, the District 5 Delegation was pleased to announce the securing of $10,000,000 in critical Carroll County infrastructure projects in Governor Hogan's supplemental budget submission including:
$5,000,000 for the Town of Union Bridge to fund upgrading the town’s sewer plant and move it out of the flood plain.
$4,000,000 for the Town of New Windsor to replace their town's 115 year-old water main.
$1,000,000 for Carroll County piping infrastructure and the expansion of the water treatment process at the Fairhaven and Raincliffe Water Treatment Plants.
To read the District 5 Delegation’s full press release, including remarks from myself and Delegates Rose and Shoemaker, click here. Governor Hogan's Supplemental Budget is expected to move through the Senate and House of Delegates quickly this week and we appreciate the Hogan administration's support on these items.
It is an honor to represent you in Annapolis and fight for common-sense proposals like real and substantial tax relief. As always, feel free to reach out to my office anytime. I look forward to updating you on future developments as we have one and a half weeks to go until "Sine Die" - the final day of Session, April 11th.