Maryland 2024 Regular Session

Maryland House Bill HB714

Introduced
1/26/24  

Caption

Income Tax - Subtraction Modification - Public Safety Employee Retirement Income

Impact

The enactment of HB714 will have a significant impact on the financial burden on retired public safety employees. Increasing the allowable retirement income subtraction directly benefits those who have dedicated their lives to serving the public, potentially allowing them to retain more of their income post-retirement. This change could enhance the quality of life for many public safety retirees, providing them with a larger financial buffer during their retirement years. The bill applies not only to state employees but also to those employed by local jurisdictions, thereby broadening its applicability and potential impact across Maryland.

Summary

House Bill 714 proposes an amendment to the Maryland income tax concerning subtraction modifications for retirement income specifically related to public safety employees. The bill modifies the current amount that can be subtracted by residents from their federal adjusted gross income to determine their Maryland adjusted gross income, particularly enhancing benefits for retired police officers, firefighters, emergency medical technicians, and correctional officers. Currently, these employees are allowed a subtraction of up to $15,000 of their retirement income; however, HB714 seeks to raise this limit to $20,000 for those aged 55 and older.

Contention

While many support the bill as a means of recognizing the sacrifices made by public safety employees, some may argue against the fiscal implications of increasing tax benefits that may reduce state revenue. Opposition may arise from concerns about equity—whether it is fair to allocate additional tax savings to public safety employees compared to other retirees. Discussions could also revolve around how the increase in exemptions might affect overall funding for public services that rely on tax revenues.

Companion Bills

MD SB588

Crossfiled Income Tax – Subtraction Modification – Public Safety Employee Retirement Income

Previously Filed As

MD HB15

Income Tax Subtraction Modification - Military and Public Safety Retirement Income

MD SB83

Income Tax Subtraction Modification – Military and Public Safety Retirement Income

MD HB125

Income Tax - Subtraction Modification - Retirement Income

MD HB195

Income Tax - Subtraction Modification - Retirement Income

MD SB49

Income Tax - Subtraction Modification - Retirement Income

MD SB94

Income Tax - Subtraction Modification - Public Safety Volunteers

MD HB521

Income Tax - Subtraction Modification - Public Safety Volunteers

MD HB1269

Income Tax - Subtraction Modification - Public Safety Volunteers

MD SB76

Income Tax – Subtraction Modification – Public Safety Volunteers

MD SB416

Income Tax - Subtraction Modification - Military Retirement Income

Similar Bills

No similar bills found.