Hogan Signs Legislation Aimed to Provide Tax Relief

Governor Larry Hogan signed a bill into law Tuesday that aims to provide “tax relief” for Marylanders, according to a news release.

In response to the Tax Cuts and Jobs Act of 2017 that eliminates the federal personal exemptions individuals could claim, Maryland State lawmakers passed the Income Tax-Personal Exemptions bill during the 2018 legislative session which allows taxpayers to deduct personal exemptions for State income tax purposes.

“The federal government put together a tax plan pretty quickly without thinking about the implications it would have on certain states,” said Del. Anne Kaiser representing District 14 in Silver Spring. “We had to act quickly and figure things out.”

The federal tax overhaul reduced or eliminated the value of exemptions made by individuals or couples filing jointly between 2018 through 2025 by reducing the amount of exemptions that can be deducted to zero.

As a result, Marylandeers would have seen a decrease in their federal taxes and an increase in state and local taxes. The legislation passed by the Maryland General Assembly allows residents to maintain $3,200 worth of exemptions that would have otherwise been eliminated.

“This is going to save money for 92 percent of Maryland taxpayers,” Kaiser said.

The bill takes effect July 1, 2018 and applies to tax years 2018 and beyond.

What Does Federal Tax Reform Mean for Marylanders?

 

 

 

Like this post? Sign up for our Daily Update here.
Mitti Hicks

About Mitti Hicks

Mitti Hicks is a multimedia journalist and community engagement specialist with Montgomery Community Media. She is passionate about telling stories that impact our community and may be reached at MHicks@mymcmedia.org and on Twitter @mittimegan.

Comments

| No comments yet.



Engage us on Facebook

Follow us on Twitter