MD
Maryland Senate Bill SB553

Maryland 2023 Regular Session

Maryland Senate Bill SB553 Compare Versions

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1- WES MOORE, Governor Ch. 614
21
3-– 1 –
4-Chapter 614
5-(Senate Bill 553)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *sb0553*
89
9-Income Tax – Subtraction Modification for Military Retirement Income
10-(Keep Our Heroes Home Act)
10+SENATE BILL 553
11+Q3 3lr0122
12+ CF HB 554
13+By: The President (By Request – Administration) and Senators Jackson,
14+Jennings, Smith, Bailey, Beidle, Benson, Brooks, Carozza, Corderman,
15+Elfreth, Ellis, Folden, Gallion, Gile, Griffith, Hershey, Hester, Hettleman,
16+James, Kagan, King, Klausmeier, McKay, Ready, Salling, Waldstreicher,
17+Watson, West, and Zucker
18+Introduced and read first time: February 6, 2023
19+Assigned to: Budget and Taxation
20+Committee Report: Favorable with amendments
21+Senate action: Adopted
22+Read second time: March 10, 2023
1123
12-FOR the purpose of increasing the amount of a certain subtraction modification under the
13-Maryland income tax for certain military retirement income received by individuals,
14-regardless of age, during the taxable year for certain military service; and generally
15-relating to a subtraction modification under the Maryland income tax for military
16-retirement income.
24+CHAPTER ______
1725
18-BY repealing and reenacting, without amendments,
19- Article – Tax – General
20- Section 10–207(a)
21- Annotated Code of Maryland
22- (2022 Replacement Volume)
26+AN ACT concerning 1
2327
24-BY repealing and reenacting, with amendments,
25- Article – Tax – General
26-Section 10–207(q)
27- Annotated Code of Maryland
28- (2022 Replacement Volume)
28+Income Tax – Subtraction Modification for Military Retirement Income 2
29+(Keep Our Heroes Home Act) 3
2930
30- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
31-That the Laws of Maryland read as follows:
31+FOR the purpose of increasing the amount of a certain subtraction modification under the 4
32+Maryland income tax for certain military retirement income received by individuals, 5
33+regardless of age, during the taxable year for certain military service; and generally 6
34+relating to a subtraction modification under the Maryland income tax for military 7
35+retirement income. 8
3236
33-Article – Tax – General
37+BY repealing and reenacting, without amendments, 9
38+ Article – Tax – General 10
39+ Section 10–207(a) 11
40+ Annotated Code of Maryland 12
41+ (2022 Replacement Volume) 13
3442
35-10–207.
43+BY repealing and reenacting, with amendments, 14
44+ Article – Tax – General 15
45+Section 10–207(q) 16
46+ Annotated Code of Maryland 17
47+ (2022 Replacement Volume) 18
48+ 2 SENATE BILL 553
3649
37- (a) To the extent included in federal adjusted gross income, the amounts under
38-this section are subtracted from the federal adjusted gross income of a resident to determine
39-Maryland adjusted gross income.
4050
41- (q) (1) (i) In this subsection the following words have the meanings
42-indicated.
51+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
52+That the Laws of Maryland read as follows: 2
4353
44- (ii) “Military retirement income” means retirement income,
45-including death benefits, received as a result of military service.
54+Article – Tax – General 3
4655
47- (iii) “Military service” means:
48- Ch. 614 2023 LAWS OF MARYLAND
56+10–207. 4
4957
50-– 2 –
51- 1. induction into the armed forces of the United States for
52-training and service under the Selective Training and Service Act of 1940 or a subsequent
53-act of a similar nature;
58+ (a) To the extent included in federal adjusted gross income, the amounts under 5
59+this section are subtracted from the federal adjusted gross income of a resident to determine 6
60+Maryland adjusted gross income. 7
5461
55- 2. membership in a reserve component of the armed forces of
56-the United States;
62+ (q) (1) (i) In this subsection the following words have the meanings 8
63+indicated. 9
5764
58- 3. membership in an active component of the armed forces of
59-the United States;
65+ (ii) “Military retirement income” means retirement income, 10
66+including death benefits, received as a result of military service. 11
6067
61- 4. membership in the Maryland National Guard; or
68+ (iii) “Military service” means: 12
6269
63- 5. active duty with the commissioned corps of the Public
64-Health Service, the National Oceanic and Atmospheric Administration, or the Coast and
65-Geodetic Survey.
70+ 1. induction into the armed forces of the United States for 13
71+training and service under the Selective Training and Service Act of 1940 or a subsequent 14
72+act of a similar nature; 15
6673
67- (2) The subtraction under subsection (a) of this section includes:
74+ 2. membership in a reserve component of the armed forces of 16
75+the United States; 17
6876
69- [(i) if, on the last day of the taxable year, the individual is under the
70-age of 55 years, the first $5,000 $12,500 of military retirement income received by an
71-individual during the taxable year; and
77+ 3. membership in an active component of the armed forces of 18
78+the United States; 19
7279
73- (ii) if, on the last day of the taxable year, the individual is at least 55
74-years old, the first $15,000 $20,000 of military retirement income received by an individual
75-during the taxable year]
80+ 4. membership in the Maryland National Guard; or 20
7681
77- (I) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31,
78-2022, BUT BEFORE JANUARY 1, 2024, THE FIRST $25,000 OF MILITARY RETIREME NT
79-INCOME RECEIVED BY A N INDIVIDUAL DURING THE TAXABLE YEAR ; AND
82+ 5. active duty with the commissioned corps of the Public 21
83+Health Service, the National Oceanic and Atmospheric Administration, or the Coast and 22
84+Geodetic Survey. 23
8085
81- (II) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31,
82-2023, THE FIRST $40,000 OF MILITARY RETIREME NT INCOME RECEIVED B Y AN
83-INDIVIDUAL DURING TH E TAXABLE YEAR .
86+ (2) The subtraction under subsection (a) of this section includes: 24
8487
85- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
86-1, 2023, and shall be applicable to all taxable years beginning after December 31, 2022.
88+ [(i) if, on the last day of the taxable year, the individual is under the 25
89+age of 55 years, the first $5,000 $12,500 of military retirement income received by an 26
90+individual during the taxable year; and 27
8791
88-Approved by the Governor, May 12, 2023.
92+ (ii) if, on the last day of the taxable year, the individual is at least 55 28
93+years old, the first $15,000 $20,000 of military retirement income received by an individual 29
94+during the taxable year] 30
95+ SENATE BILL 553 3
96+
97+
98+ (I) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 1
99+2022, BUT BEFORE JANUARY 1, 2024, THE FIRST $25,000 OF MILITARY RETIREME NT 2
100+INCOME RECEIVED BY A N INDIVIDUAL DURING THE TAXABLE YEAR ; AND 3
101+
102+ (II) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 4
103+2023, THE FIRST $40,000 OF MILITARY RETIREME NT INCOME RECEIVED B Y AN 5
104+INDIVIDUAL DURING TH E TAXABLE YEAR . 6
105+
106+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 7
107+1, 2023, and shall be applicable to all taxable years beginning after December 31, 2022. 8
108+
109+
110+
111+
112+Approved:
113+________________________________________________________________________________
114+ Governor.
115+________________________________________________________________________________
116+ President of the Senate.
117+________________________________________________________________________________
118+ Speaker of the House of Delegates.