EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0076*
SENATE BILL 76
Q3 3lr0890
(PRE–FILED)
By: Senator Bailey
Requested: November 18, 2022
Introduced and read first time: January 11, 2023
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Income Tax – Subtraction Modification – Public Safety Volunteers 2
FOR the purpose of increasing a subtraction modification under the Maryland income tax 3
for an individual who is a qualifying public safety volunteer; and generally relating 4
to a subtraction modification under the Maryland income tax for an individual who 5
is a qualifying public safety volunteer. 6
BY repealing and reenacting, without amendments, 7
Article – Tax – General 8
Section 10–208(a) 9
Annotated Code of Maryland 10
(2022 Replacement Volume) 11
BY repealing and reenacting, with amendments, 12
Article – Tax – General 13
Section 10–208(i–1) 14
Annotated Code of Maryland 15
(2022 Replacement Volume) 16
BY repealing 17
Article – Tax – General 18
Section 10–208(l) 19
Annotated Code of Maryland 20
(2022 Replacement Volume) 21
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
That the Laws of Maryland read as follows: 23
Article – Tax – General 24
2 SENATE BILL 76
10–208. 1
(a) In addition to the modification under § 10–207 of this subtitle, the amounts 2
under this section are subtracted from the federal adjusted gross income of a resident to 3
determine Maryland adjusted gross income. 4
(i–1) (1) (I) IN THIS SUBSECTION THE FOLLOWING WORDS HAVE THE 5
MEANINGS INDICA TED. 6
(II) “PUBLIC SAFETY ORGANIZ ATION” MEANS: 7
1. A BONA FIDE MARYLAND POLICE AGENCY ; 8
2. A BONA FIDE MARYLAND FIRE, RESCUE, OR 9
EMERGENCY MEDICAL SE RVICES ORGANIZATION ; 10
3. AN AUXILIARY ORGANIZ ATION OF A BONA FIDE 11
MARYLAND FIRE, RESCUE, OR EMERGENCY MEDICAL SE RVICES ORGANIZATION ; 12
4. THE UNITED STATES COAST GUARD AUXILIARY; 13
5. THE MARYLAND DEFENSE FORCE; OR 14
6. THE MARYLAND CIVIL AIR PATROL. 15
(III) “PUBLIC SAFETY VOLUNTE ER” MEANS A MEMBER OF A 16
PUBLIC SAFETY ORGANI ZATION. 17
(2) The subtraction under subsection (a) of this section includes an amount 18
equal to the amount specified in paragraph [(3)] (4) of this subsection if an individual is a 19
qualifying PUBLIC SAFETY volunteer [fire, rescue, or emergency medical services member] 20
for the taxable year, as determined under paragraph [(2)] (3) of this subsection. 21
[(2)] (3) An individual is a qualifying PUBLIC SAFETY volunteer [fire, 22
rescue, or emergency medical services member] for the taxable year eligible for the 23
subtraction modification under this subsection if the individual: 24
(i) is an active member of A PUBLIC SAFETY ORGA NIZATION[: 25
1. a bona fide Maryland fire, rescue, or emergency medical 26
services organization; 27
2. an auxiliary organization of a bona fide Maryland fire, 28
rescue, or emergency medical services organization; 29
SENATE BILL 76 3
3. the United States Coast Guard Auxiliary; 1
4. the Maryland Defense Force; or 2
5. the Maryland Civil Air Patrol]; 3
(ii) serves the PUBLIC SAFETY organization in a volunteer capacity 4
without compensation, except nominal expenses or meals; 5
(iii) 1. qualifies for active status during the taxable year under: 6
A. A POLICE AUXILIARY O R RESERVE VOLUNTEER 7
PROGRAM APPROVED BY THE POLICE TRAINING AND STANDARDS COMMISSION IN 8
CONJUNCTION WITH THE MARYLAND ASSOCIATION OF COUNTIES AND THE 9
MARYLAND MUNICIPAL LEAGUE, THAT INCLUDES UNIFOR M SYSTEMS FOR 10
QUALIFICATION AND RE CORD KEEPING , IF THE PROGRAM IS IN CORPORATED INTO 11
THE POLICE AGENCY ’S RULES AND REGULATI ONS; 12
B. a volunteer fire, rescue, or emergency medical services 13
personnel or auxiliary length of service award program operated by a county or municipal 14
corporation of the State, if the length of service award program requires for active status 15
qualification a minimum of 50 points per year and that points be earned in at least two 16
different categories; or 17
[B.] C. a point system established by a county or municipal 18
corporation that does not operate a volunteer fire, rescue, or emergency medical services 19
personnel or auxiliary length of service award program or by the United States Coast Guard 20
Auxiliary, the Maryland Defense Force, or the Maryland Civil Air Patrol, to identify active 21
members of a volunteer fire, rescue, or emergency medical services organization or 22
auxiliary organization, if the point system requires for active status qualification a 23
minimum of 50 points per year and that points be earned in at least two different categories; 24
2. has maintained active status for at least 25 years under: 25
A. A POLICE AUXILIARY O R RESERVE VOLUNTEER 26
PROGRAM; OR 27
B. a volunteer fire, rescue, or emergency medical services 28
personnel or auxiliary length of service award program or a point system established in 29
lieu of a length of service award program; 30
3. is a member of the National Guard or other reserve 31
component of the United States armed forces who has been ordered into active military 32
service and who serves on active duty in the armed forces of the United States during the 33
taxable year; or 34
4 SENATE BILL 76
4. is a civilian or a member of the Merchant Marine on 1
assignment in support of the armed forces of the United States during the taxable year in 2
an area designated as a combat zone by executive order of the President; and 3
(iv) will have been an active member of a [bona fide Maryland fire, 4
rescue, or emergency medical services organization, an auxiliary organization of a bona fide 5
Maryland fire, rescue, or emergency medical services organization, or the United States 6
Coast Guard Auxiliary, the Maryland Defense Force, or the Maryland Civil Air Patrol] 7
PUBLIC SAFETY ORGANI ZATION for at least 36 months during the last 10 calendar years 8
by December 31 of the taxable year. 9
[(3)] (4) The amount of the subtraction under paragraph (1) of this 10
subsection is equal to: 11
(i) [$4,750 for a taxable year beginning after December 31, 2017, 12
but before January 1, 2019; 13
(ii) $5,000 for a taxable year beginning after December 31, 2018, but 14
before January 1, 2020; 15
(iii) $6,000 for a taxable year beginning after December 31, 2019, but 16
before January 1, 2021; 17
(iv) $6,500 for a taxable year beginning after December 31, 2020, but 18
before January 1, 2022; and 19
(v)] $7,000 for a taxable year beginning after December 31, [2021] 20
2022, BUT BEFORE JANUARY 1, 2024; AND 21
(II) $10,000 FOR A TAXABLE YEAR B EGINNING AFTER 22
DECEMBER 31, 2023. 23
[(4)] (5) (i) EACH POLICE AGENCY SH ALL: 24
1. MAINTAIN A RECORD OF THE ACTIVITIES OF EA CH 25
MEMBER OF A POLICE AUXILIARY OR RESERVE DURING THE CALENDAR YEAR ; 26
2. PROVIDE EACH MEMBER A REPORT BY FEBRUARY 15 27
OF THE FOLLOWING YEA R INDICATING THAT TH E MEMBER QUALIFIED D URING THE 28
PRECEDING CALENDAR Y EAR; AND 29
3. PROVIDE A REPORT THA T INCLUDES THE NAMES , 30
SOCIAL SECURITY NUMBERS, AND A CERTIFICATION THAT T HE INDIVIDUAL 31
QUALIFIED FOR THE SU BTRACTION MODIFICATI ON UNDER THIS SECTIO N. 32
SENATE BILL 76 5
(II) Each fire, rescue, or emergency medical services organization or 1
auxiliary organization shall: 2
1. maintain a record of the points earned by each individual 3
during each calendar year; 4
2. provide each member a report identifying the number of 5
points earned in each category by February 15 of the following year; and 6
3. provide a report that includes the names, Social Security 7
numbers, and points earned by those members qualifying for the subtraction modification 8
under this subsection to the Maryland State Firemen’s Association by May 1 of the 9
following year. 10
[(ii)] (III) An individual may not qualify for the subtraction under 11
this subsection based on membership in the United States Coast Guard Auxiliary, the 12
Maryland Defense Force, or the Maryland Civil Air Patrol unless the United States Coast 13
Guard Auxiliary, the Maryland Defense Force, or the Maryland Civil Air Patrol: 14
1. maintains a record of the points earned by each individual 15
during each calendar year; 16
2. provides each member a report identifying the number of 17
points earned in each category by February 15 of the following year; and 18
3. provides a report that includes the names, Social Security 19
numbers, and points earned by those members qualifying for the subtraction modification 20
under this subsection to the Comptroller on or before October 1 of each year. 21
[(5)] (6) To qualify for the subtraction modification under this subsection, 22
an individual shall attach to the individual’s income tax return a copy of the report provided 23
by the PUBLIC SAFETY organization under paragraph [(4)] (5) of this subsection. 24
[(6)] (7) (I) ON OR BEFORE OCTOBER 1 EACH YEAR, EACH BONA 25
FIDE MARYLAND POLICE AGENC Y SHALL SUBMIT TO TH E DEPARTMENT OF PUBLIC 26
SAFETY AND CORRECTIONAL SERVICES AND THE OFFICE OF THE COMPTROLLER A 27
REPORT LISTING THE N AMES AND SOCIAL SECURITY NUMBERS OF I NDIVIDUALS 28
WHO QUALIFIED FOR TH E SUBTRACTION MODIFI CATION UNDER THIS SUBSECTION 29
FOR THE PRECEDING TA XABLE YEAR. 30
(II) On or before October 1 of each year, the Maryland State 31
Firemen’s Association shall submit to the Department of Public Safety and Correctional 32
Services and the Office of the Comptroller a report stating the participation in the point 33
system by the various local subdivisions with the names and Social Security numbers of 34
individuals who qualified for the subtraction modification under this subsection for the 35
preceding taxable year. 36 6 SENATE BILL 76
[(7)] (8) (i) A person may not knowingly make or cause any false 1
statement or report to be made in any application or in any document required under this 2
subsection. 3
(ii) Any person who violates or attempts to violate any provision of 4
subparagraph (i) of this paragraph shall be subject to a fine of $1,000. 5
[(l) (1) The subtraction under subsection (a) of this section includes an amount 6
equal to the amount specified in paragraph (3) of this subsection if an individual is a 7
qualifying police auxiliary or reserve volunteer for the taxable year, as determined under 8
paragraph (2) of this subsection. 9
(2) An individual is a qualifying police auxiliary or reserve volunteer for 10
the taxable year eligible for the subtraction modification under this subsection if the 11
individual: 12
(i) is an active member of a bona fide Maryland police agency; 13
(ii) serves the organization in a volunteer capacity without 14
compensation, except nominal expenses or meals; 15
(iii) 1. qualifies for active status during the taxable year under a 16
police auxiliary or reserve volunteer program approved by the Police Training and 17
Standards Commission in conjunction with the Maryland Association of Counties and the 18
Maryland Municipal League, that includes uniform systems for qualification and record 19
keeping, if the program is incorporated into the police agency’s rules and regulations; 20
2. has maintained active status for at least 25 years under 21
the police auxiliary or reserve volunteer program; 22
3. is a member of the National Guard or other reserve 23
component of the United States armed forces who has been ordered into active military 24
service and who serves on active duty in the armed forces of the United States during the 25
taxable year; or 26
4. is a civilian or a member of the Merchant Marine on 27
assignment in support of the armed forces of the United States during the taxable year in 28
an area designated as a combat zone by executive order of the President; and 29
(iv) will have been an active member of a bona fide police agency for 30
at least 36 months during the last 10 calendar years by December 31 of the taxable year. 31
(3) The amount of the subtraction under paragraph (1) of this subsection is 32
equal to: 33
(i) $4,500 for a taxable year beginning after December 31, 2016, but 34 SENATE BILL 76 7
before January 1, 2018; 1
(ii) $4,750 for a taxable year beginning after December 31, 2017, but 2
before January 1, 2019; and 3
(iii) $5,000 for a taxable year beginning after December 31, 2018. 4
(4) Each police agency shall: 5
(i) maintain a record of the activities of each police auxiliary or 6
reserve volunteer during the calendar year; 7
(ii) provide each member a report by February 15 of the following 8
year indicating that the member qualified during the preceding calendar year; and 9
(iii) provide a report that includes the names, Social Security 10
numbers, and a certification that the individual qualified for the subtraction modification 11
under this section. 12
(5) To qualify for the subtraction modification under this subsection, an 13
individual shall attach to the individual’s income tax return a copy of the report provided 14
by the police agency under paragraph (4) of this subsection. 15
(6) On or before October 1 of each year, the police agency shall submit to 16
the Department of Public Safety and Correctional Services and the Office of the 17
Comptroller a report listing the names and Social Security numbers of individuals who 18
qualified for the subtraction modification under this subsection for the preceding taxable 19
year. 20
(7) (i) A person may not knowingly make or cause any false statement 21
or report to be made in any application or in any document required under this subsection. 22
(ii) Any person who violates or attempts to violate any provision of 23
subparagraph (i) of this paragraph shall be subject to a fine of $1,000.] 24
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 25
1, 2023, and shall be applicable to all taxable years beginning after December 31, 2022. 26