Maryland 2023 Regular Session

Maryland Senate Bill SB76 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0076
6	6
7	7	SENATE BILL 76
8	8	Q3 3lr0890
9	9	(PRE–FILED)
10	10	By: Senator Bailey
11	11	Requested: November 18, 2022
12	12	Introduced and read first time: January 11, 2023
13	13	Assigned to: Budget and Taxation
14	14
15	15	A BILL ENTITLED
16	16
17	17	AN ACT concerning 1
18	18
19	19	Income Tax – Subtraction Modification – Public Safety Volunteers 2
20	20
21	21	FOR the purpose of increasing a subtraction modification under the Maryland income tax 3
22	22	for an individual who is a qualifying public safety volunteer; and generally relating 4
23	23	to a subtraction modification under the Maryland income tax for an individual who 5
24	24	is a qualifying public safety volunteer. 6
25	25
26	26	BY repealing and reenacting, without amendments, 7
27	27	Article – Tax – General 8
28	28	Section 10–208(a) 9
29	29	Annotated Code of Maryland 10
30	30	(2022 Replacement Volume) 11
31	31
32	32	BY repealing and reenacting, with amendments, 12
33	33	Article – Tax – General 13
34	34	Section 10–208(i–1) 14
35	35	Annotated Code of Maryland 15
36	36	(2022 Replacement Volume) 16
37	37
38	38	BY repealing 17
39	39	Article – Tax – General 18
40	40	Section 10–208(l) 19
41	41	Annotated Code of Maryland 20
42	42	(2022 Replacement Volume) 21
43	43
44	44	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
45	45	That the Laws of Maryland read as follows: 23
46	46
47	47	Article – Tax – General 24
48	48	2 SENATE BILL 76
49	49
50	50
51	51	10–208. 1
52	52
53	53	(a) In addition to the modification under § 10–207 of this subtitle, the amounts 2
54	54	under this section are subtracted from the federal adjusted gross income of a resident to 3
55	55	determine Maryland adjusted gross income. 4
56	56
57	57	(i–1) (1) (I) IN THIS SUBSECTION THE FOLLOWING WORDS HAVE THE 5
58	58	MEANINGS INDICA TED. 6
59	59
60	60	(II) “PUBLIC SAFETY ORGANIZ ATION” MEANS: 7
61	61
62	62	1. A BONA FIDE MARYLAND POLICE AGENCY ; 8
63	63
64	64	2. A BONA FIDE MARYLAND FIRE, RESCUE, OR 9
65	65	EMERGENCY MEDICAL SE RVICES ORGANIZATION ; 10
66	66
67	67	3. AN AUXILIARY ORGANIZ ATION OF A BONA FIDE 11
68	68	MARYLAND FIRE, RESCUE, OR EMERGENCY MEDICAL SE RVICES ORGANIZATION ; 12
69	69
70	70	4. THE UNITED STATES COAST GUARD AUXILIARY; 13
71	71
72	72	5. THE MARYLAND DEFENSE FORCE; OR 14
73	73
74	74	6. THE MARYLAND CIVIL AIR PATROL. 15
75	75
76	76	(III) “PUBLIC SAFETY VOLUNTE ER” MEANS A MEMBER OF A 16
77	77	PUBLIC SAFETY ORGANI ZATION. 17
78	78
79	79	(2) The subtraction under subsection (a) of this section includes an amount 18
80	80	equal to the amount specified in paragraph [(3)] (4) of this subsection if an individual is a 19
81	81	qualifying PUBLIC SAFETY volunteer [fire, rescue, or emergency medical services member] 20
82	82	for the taxable year, as determined under paragraph [(2)] (3) of this subsection. 21
83	83
84	84	[(2)] (3) An individual is a qualifying PUBLIC SAFETY volunteer [fire, 22
85	85	rescue, or emergency medical services member] for the taxable year eligible for the 23
86	86	subtraction modification under this subsection if the individual: 24
87	87
88	88	(i) is an active member of A PUBLIC SAFETY ORGA NIZATION[: 25
89	89
90	90	1. a bona fide Maryland fire, rescue, or emergency medical 26
91	91	services organization; 27
92	92
93	93	2. an auxiliary organization of a bona fide Maryland fire, 28
94	94	rescue, or emergency medical services organization; 29
95	95	SENATE BILL 76 3
96	96
97	97
98	98	3. the United States Coast Guard Auxiliary; 1
99	99
100	100	4. the Maryland Defense Force; or 2
101	101
102	102	5. the Maryland Civil Air Patrol]; 3
103	103
104	104	(ii) serves the PUBLIC SAFETY organization in a volunteer capacity 4
105	105	without compensation, except nominal expenses or meals; 5
106	106
107	107	(iii) 1. qualifies for active status during the taxable year under: 6
108	108
109	109	A. A POLICE AUXILIARY O R RESERVE VOLUNTEER 7
110	110	PROGRAM APPROVED BY THE POLICE TRAINING AND STANDARDS COMMISSION IN 8
111	111	CONJUNCTION WITH THE MARYLAND ASSOCIATION OF COUNTIES AND THE 9
112	112	MARYLAND MUNICIPAL LEAGUE, THAT INCLUDES UNIFOR M SYSTEMS FOR 10
113	113	QUALIFICATION AND RE CORD KEEPING , IF THE PROGRAM IS IN CORPORATED INTO 11
114	114	THE POLICE AGENCY ’S RULES AND REGULATI ONS; 12
115	115
116	116	B. a volunteer fire, rescue, or emergency medical services 13
117	117	personnel or auxiliary length of service award program operated by a county or municipal 14
118	118	corporation of the State, if the length of service award program requires for active status 15
119	119	qualification a minimum of 50 points per year and that points be earned in at least two 16
120	120	different categories; or 17
121	121
122	122	[B.] C. a point system established by a county or municipal 18
123	123	corporation that does not operate a volunteer fire, rescue, or emergency medical services 19
124	124	personnel or auxiliary length of service award program or by the United States Coast Guard 20
125	125	Auxiliary, the Maryland Defense Force, or the Maryland Civil Air Patrol, to identify active 21
126	126	members of a volunteer fire, rescue, or emergency medical services organization or 22
127	127	auxiliary organization, if the point system requires for active status qualification a 23
128	128	minimum of 50 points per year and that points be earned in at least two different categories; 24
129	129
130	130	2. has maintained active status for at least 25 years under: 25
131	131
132	132	A. A POLICE AUXILIARY O R RESERVE VOLUNTEER 26
133	133	PROGRAM; OR 27
134	134
135	135	B. a volunteer fire, rescue, or emergency medical services 28
136	136	personnel or auxiliary length of service award program or a point system established in 29
137	137	lieu of a length of service award program; 30
138	138
139	139	3. is a member of the National Guard or other reserve 31
140	140	component of the United States armed forces who has been ordered into active military 32
141	141	service and who serves on active duty in the armed forces of the United States during the 33
142	142	taxable year; or 34
143	143	4 SENATE BILL 76
144	144
145	145
146	146	4. is a civilian or a member of the Merchant Marine on 1
147	147	assignment in support of the armed forces of the United States during the taxable year in 2
148	148	an area designated as a combat zone by executive order of the President; and 3
149	149
150	150	(iv) will have been an active member of a [bona fide Maryland fire, 4
151	151	rescue, or emergency medical services organization, an auxiliary organization of a bona fide 5
152	152	Maryland fire, rescue, or emergency medical services organization, or the United States 6
153	153	Coast Guard Auxiliary, the Maryland Defense Force, or the Maryland Civil Air Patrol] 7
154	154	PUBLIC SAFETY ORGANI ZATION for at least 36 months during the last 10 calendar years 8
155	155	by December 31 of the taxable year. 9
156	156
157	157	[(3)] (4) The amount of the subtraction under paragraph (1) of this 10
158	158	subsection is equal to: 11
159	159
160	160	(i) [$4,750 for a taxable year beginning after December 31, 2017, 12
161	161	but before January 1, 2019; 13
162	162
163	163	(ii) $5,000 for a taxable year beginning after December 31, 2018, but 14
164	164	before January 1, 2020; 15
165	165
166	166	(iii) $6,000 for a taxable year beginning after December 31, 2019, but 16
167	167	before January 1, 2021; 17
168	168
169	169	(iv) $6,500 for a taxable year beginning after December 31, 2020, but 18
170	170	before January 1, 2022; and 19
171	171
172	172	(v)] $7,000 for a taxable year beginning after December 31, [2021] 20
173	173	2022, BUT BEFORE JANUARY 1, 2024; AND 21
174	174
175	175	(II) $10,000 FOR A TAXABLE YEAR B EGINNING AFTER 22
176	176	DECEMBER 31, 2023. 23
177	177
178	178	[(4)] (5) (i) EACH POLICE AGENCY SH ALL: 24
179	179
180	180	1. MAINTAIN A RECORD OF THE ACTIVITIES OF EA CH 25
181	181	MEMBER OF A POLICE AUXILIARY OR RESERVE DURING THE CALENDAR YEAR ; 26
182	182
183	183	2. PROVIDE EACH MEMBER A REPORT BY FEBRUARY 15 27
184	184	OF THE FOLLOWING YEA R INDICATING THAT TH E MEMBER QUALIFIED D URING THE 28
185	185	PRECEDING CALENDAR Y EAR; AND 29
186	186
187	187	3. PROVIDE A REPORT THA T INCLUDES THE NAMES , 30
188	188	SOCIAL SECURITY NUMBERS, AND A CERTIFICATION THAT T HE INDIVIDUAL 31
189	189	QUALIFIED FOR THE SU BTRACTION MODIFICATI ON UNDER THIS SECTIO N. 32
190	190	SENATE BILL 76 5
191	191
192	192
193	193	(II) Each fire, rescue, or emergency medical services organization or 1
194	194	auxiliary organization shall: 2
195	195
196	196	1. maintain a record of the points earned by each individual 3
197	197	during each calendar year; 4
198	198
199	199	2. provide each member a report identifying the number of 5
200	200	points earned in each category by February 15 of the following year; and 6
201	201
202	202	3. provide a report that includes the names, Social Security 7
203	203	numbers, and points earned by those members qualifying for the subtraction modification 8
204	204	under this subsection to the Maryland State Firemen’s Association by May 1 of the 9
205	205	following year. 10
206	206
207	207	[(ii)] (III) An individual may not qualify for the subtraction under 11
208	208	this subsection based on membership in the United States Coast Guard Auxiliary, the 12
209	209	Maryland Defense Force, or the Maryland Civil Air Patrol unless the United States Coast 13
210	210	Guard Auxiliary, the Maryland Defense Force, or the Maryland Civil Air Patrol: 14
211	211
212	212	1. maintains a record of the points earned by each individual 15
213	213	during each calendar year; 16
214	214
215	215	2. provides each member a report identifying the number of 17
216	216	points earned in each category by February 15 of the following year; and 18
217	217
218	218	3. provides a report that includes the names, Social Security 19
219	219	numbers, and points earned by those members qualifying for the subtraction modification 20
220	220	under this subsection to the Comptroller on or before October 1 of each year. 21
221	221
222	222	[(5)] (6) To qualify for the subtraction modification under this subsection, 22
223	223	an individual shall attach to the individual’s income tax return a copy of the report provided 23
224	224	by the PUBLIC SAFETY organization under paragraph [(4)] (5) of this subsection. 24
225	225
226	226	[(6)] (7) (I) ON OR BEFORE OCTOBER 1 EACH YEAR, EACH BONA 25
227	227	FIDE MARYLAND POLICE AGENC Y SHALL SUBMIT TO TH E DEPARTMENT OF PUBLIC 26
228	228	SAFETY AND CORRECTIONAL SERVICES AND THE OFFICE OF THE COMPTROLLER A 27
229	229	REPORT LISTING THE N AMES AND SOCIAL SECURITY NUMBERS OF I NDIVIDUALS 28
230	230	WHO QUALIFIED FOR TH E SUBTRACTION MODIFI CATION UNDER THIS SUBSECTION 29
231	231	FOR THE PRECEDING TA XABLE YEAR. 30
232	232
233	233	(II) On or before October 1 of each year, the Maryland State 31
234	234	Firemen’s Association shall submit to the Department of Public Safety and Correctional 32
235	235	Services and the Office of the Comptroller a report stating the participation in the point 33
236	236	system by the various local subdivisions with the names and Social Security numbers of 34
237	237	individuals who qualified for the subtraction modification under this subsection for the 35
238	238	preceding taxable year. 36 6 SENATE BILL 76
239	239
240	240
241	241
242	242	[(7)] (8) (i) A person may not knowingly make or cause any false 1
243	243	statement or report to be made in any application or in any document required under this 2
244	244	subsection. 3
245	245
246	246	(ii) Any person who violates or attempts to violate any provision of 4
247	247	subparagraph (i) of this paragraph shall be subject to a fine of $1,000. 5
248	248
249	249	[(l) (1) The subtraction under subsection (a) of this section includes an amount 6
250	250	equal to the amount specified in paragraph (3) of this subsection if an individual is a 7
251	251	qualifying police auxiliary or reserve volunteer for the taxable year, as determined under 8
252	252	paragraph (2) of this subsection. 9
253	253
254	254	(2) An individual is a qualifying police auxiliary or reserve volunteer for 10
255	255	the taxable year eligible for the subtraction modification under this subsection if the 11
256	256	individual: 12
257	257
258	258	(i) is an active member of a bona fide Maryland police agency; 13
259	259
260	260	(ii) serves the organization in a volunteer capacity without 14
261	261	compensation, except nominal expenses or meals; 15
262	262
263	263	(iii) 1. qualifies for active status during the taxable year under a 16
264	264	police auxiliary or reserve volunteer program approved by the Police Training and 17
265	265	Standards Commission in conjunction with the Maryland Association of Counties and the 18
266	266	Maryland Municipal League, that includes uniform systems for qualification and record 19
267	267	keeping, if the program is incorporated into the police agency’s rules and regulations; 20
268	268
269	269	2. has maintained active status for at least 25 years under 21
270	270	the police auxiliary or reserve volunteer program; 22
271	271
272	272	3. is a member of the National Guard or other reserve 23
273	273	component of the United States armed forces who has been ordered into active military 24
274	274	service and who serves on active duty in the armed forces of the United States during the 25
275	275	taxable year; or 26
276	276
277	277	4. is a civilian or a member of the Merchant Marine on 27
278	278	assignment in support of the armed forces of the United States during the taxable year in 28
279	279	an area designated as a combat zone by executive order of the President; and 29
280	280
281	281	(iv) will have been an active member of a bona fide police agency for 30
282	282	at least 36 months during the last 10 calendar years by December 31 of the taxable year. 31
283	283
284	284	(3) The amount of the subtraction under paragraph (1) of this subsection is 32
285	285	equal to: 33
286	286
287	287	(i) $4,500 for a taxable year beginning after December 31, 2016, but 34 SENATE BILL 76 7
288	288
289	289
290	290	before January 1, 2018; 1
291	291
292	292	(ii) $4,750 for a taxable year beginning after December 31, 2017, but 2
293	293	before January 1, 2019; and 3
294	294
295	295	(iii) $5,000 for a taxable year beginning after December 31, 2018. 4
296	296
297	297	(4) Each police agency shall: 5
298	298
299	299	(i) maintain a record of the activities of each police auxiliary or 6
300	300	reserve volunteer during the calendar year; 7
301	301
302	302	(ii) provide each member a report by February 15 of the following 8
303	303	year indicating that the member qualified during the preceding calendar year; and 9
304	304
305	305	(iii) provide a report that includes the names, Social Security 10
306	306	numbers, and a certification that the individual qualified for the subtraction modification 11
307	307	under this section. 12
308	308
309	309	(5) To qualify for the subtraction modification under this subsection, an 13
310	310	individual shall attach to the individual’s income tax return a copy of the report provided 14
311	311	by the police agency under paragraph (4) of this subsection. 15
312	312
313	313	(6) On or before October 1 of each year, the police agency shall submit to 16
314	314	the Department of Public Safety and Correctional Services and the Office of the 17
315	315	Comptroller a report listing the names and Social Security numbers of individuals who 18
316	316	qualified for the subtraction modification under this subsection for the preceding taxable 19
317	317	year. 20
318	318
319	319	(7) (i) A person may not knowingly make or cause any false statement 21
320	320	or report to be made in any application or in any document required under this subsection. 22
321	321
322	322	(ii) Any person who violates or attempts to violate any provision of 23
323	323	subparagraph (i) of this paragraph shall be subject to a fine of $1,000.] 24
324	324
325	325	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 25
326	326	1, 2023, and shall be applicable to all taxable years beginning after December 31, 2022. 26
327	327