Hogan, Ferguson and Jones sign $1.86 billion tax cut package – CBS Baltimore

BALTIMORE (WJZ) – Marylanders are set to receive $1.86 billion in savings after Gov. Larry Hogan, House Speaker Adrienne Jones and Senate President Bill Ferguson signed into law a package of tax cuts, including legislation eliminating income taxes for most retirees in the state.

Senate Bill 405 and House Bill 420 create a $1,000 tax credit for residents 65 and older whose income does not exceed $100,000 and a $1,750 tax credit for couples 65 and older whose income does not exceed $150,000. Both credits go against the collection of income tax by the state.

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The bills also expand tax limits for retired law enforcement officials; law enforcement officers; and fire, rescue and emergency service personnel between the ages of 55 and 64.

Other bills in the package waive sales tax on childcare and healthcare products and create a tax credit for companies that “hire and retain employees from underserved communities.”

During a signing ceremony for the bill on Friday, Hogan said he’s heard about the tax rate from Maryland seniors since taking office.

“I heard almost every day, and I’ve heard it over and over again for the past 8 years, from people saying, ‘I love the state of Maryland, I really don’t want to leave my children and grandchildren behind, but I only can cannot afford to stay here on a steady income,” he said.

The cut is expected to affect 80% of seniors in the state — a group that makes up nearly 16% of the state’s population, Ferguson said.

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“They make up a significant part of our communities and over many decades have helped make our state what it is today,” he said. “They are generations of men and women who have created prosperity for our nation, boosted the economy, championed civil rights and made technological advances that have improved our standards of living.”

Maryland lawmakers began the January legislature with a budget surplus of $4.5 billion. In March, government revenue forecasts were revised upwards by $1.6 billion.

A portion of the windfall was used for a 30-day gas tax holiday. Excess money will be used to cover losses for the Transportation Trust Fund after the state suspended its collection of 36 cents a gallon.

The sales tax changes are expected to save families $115.6 million, and the job opportunity tax credit program is expected to save $195 million for small businesses.

“Investing government money to support vulnerable populations fulfills our promise to use this session to help our residents recover from the pandemic,” Jones said.

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The tax cuts apply between fiscal year 2023 and fiscal year 2027.