Maryland 2023 Regular Session

Maryland Senate Bill SB94 Compare Versions

Version 1 (Old)

Version 2 (New)

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		-	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	5		sb0094
9	6
10	7		SENATE BILL 94
11	8		Q3 3lr0823
12	9		SB 122/22 – B&T (PRE–FILED)
13		-	By: Senator Jackson Senators Jackson, Bailey, Benson, Corderman, Elfreth,
14		-	Guzzone, Hettleman, Jennings, King, McCray, Rosapepe, Salling, and
15		-	Zucker
	10	+	By: Senator Jackson
16	11		Requested: November 16, 2022
17	12		Introduced and read first time: January 11, 2023
18	13		Assigned to: Budget and Taxation
19		-	Committee Report: Favorable with amendments
20		-	Senate action: Adopted
21		-	Read second time: February 14, 2023
22	14
23		-	~~CHAPTER ______~~
	15	+	A BILL ENTITLED
24	16
25	17		AN ACT concerning 1
26	18
27	19		Income Tax – Subtraction Modification – Volunteer Fire, Rescue, and 2
28		-	Emergency Medical Services ~~Public Safety Volunteers~~ 3
	20	+	Emergency Medical Services 3
29	21
30	22		FOR the purpose of increasing the amount of a subtraction modification under the 4
31	23		Maryland income tax for certain qualifying volunteer fire, rescue, and emergency 5
32		-	medical services members an individual who is a qualifying public safety volunteer 6
33		-	beginning in a certain taxable year; and generally relating to a subtraction 7
34		-	modification under the Maryland income tax for qualifying volunteer fire, rescue, 8
35		-	and emergency medical services members public safety volunteers. 9
	24	+	medical services members beginning in a certain taxable year; and generally relating 6
	25	+	to a subtraction modification under the Maryland income tax for qualifying volunteer 7
	26	+	fire, rescue, and emergency medical services members. 8
36	27
37		-	BY repealing and reenacting, without amendments, 10
38		-	Article – Tax – General 11
39		-	Section 10–208(a) and (i–1)(1) 12
40		-	Annotated Code of Maryland 13
41		-	(2022 Replacement Volume) 14
	28	+	BY repealing and reenacting, without amendments, 9
	29	+	Article – Tax – General 10
	30	+	Section 10–208(a) and (i–1)(1) 11
	31	+	Annotated Code of Maryland 12
	32	+	(2022 Replacement Volume) 13
42	33
43		-	BY repealing and reenacting, with amendments, 15
44		-	Article – Tax – General 16
45		-	Section 10–208(i–1)(3) 10–208(i–1) 17
46		-	Annotated Code of Maryland 18
47		-	(2022 Replacement Volume) 19
	34	+	BY repealing and reenacting, with amendments, 14
	35	+	Article – Tax – General 15
	36	+	Section 10–208(i–1)(3) 16
	37	+	Annotated Code of Maryland 17
	38	+	(2022 Replacement Volume) 18
	39	+
	40	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
	41	+	That the Laws of Maryland read as follows: 20
	42	+
	43	+	Article – Tax – General 21
	44	+
	45	+	10–208. 22
48	46		2 SENATE BILL 94
49	47
50	48
51		-	BY repealing 1
52		-	Article – Tax – General 2
53		-	Section 10–208(l) 3
54		-	Annotated Code of Maryland 4
55		-	(2022 Replacement Volume) 5
	49	+	(a) In addition to the modification under § 10–207 of this subtitle, the amounts 1
	50	+	under this section are subtracted from the federal adjusted gross income of a resident to 2
	51	+	determine Maryland adjusted gross income. 3
56	52
57		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
58		-	That the Laws of Maryland read as follows: 7
	53	+	(i–1) (1) The subtraction under subsection (a) of this section includes an amount 4
	54	+	equal to the amount specified in paragraph (3) of this subsection if an individual is a 5
	55	+	qualifying volunteer fire, rescue, or emergency medical services member for the taxable 6
	56	+	year, as determined under paragraph (2) of this subsection. 7
59	57
60		-	Article – Tax – General 8
	58	+	(3) The amount of the subtraction under paragraph (1) of this subsection is 8
	59	+	equal to: 9
61	60
62		-	10–208. 9
	61	+	(i) $4,750 for a taxable year beginning after December 31, 2017, but 10
	62	+	before January 1, 2019; 11
63	63
64		-	(a) In addition to the modification under § 10–207 of this subtitle, the amounts 10
65		-	under this section are subtracted from the federal adjusted gross income of a resident to 11
66		-	determine Maryland adjusted gross income. 12
	64	+	(ii) $5,000 for a taxable year beginning after December 31, 2018, but 12
	65	+	before January 1, 2020; 13
67	66
68		-	(i–1) (1) The subtraction under subsection (a) of this section includes an amount 13
69		-	equal to the amount specified in paragraph (3) of this subsection if an individual is a 14
70		-	qualifying volunteer fire, rescue, or emergency medical services member for the taxable 15
71		-	year, as determined under paragraph (2) of this subsection. 16
	67	+	(iii) $6,000 for a taxable year beginning after December 31, 2019, but 14
	68	+	before January 1, 2021; 15
72	69
73		-	(~~i–1~~) ~~(1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 17~~
74		-	~~MEANINGS INDICATED . 18~~
	70	+	(iv) $6,500 for a taxable year beginning after December 31, 2020, but 16
	71	+	before January 1, 2022; [and] 17
75	72
76		-	(II) “PUBLIC SAFETY ORGANIZ ATION” MEANS: 19
	73	+	(v) $7,000 for a taxable year beginning after December 31, 2021, 18
	74	+	BUT BEFORE JANUARY 1, 2024; AND 19
77	75
78		-	1. A BONA FIDE MARYLAND POLICE AGENC Y; 20
	76	+	(VI) $10,000 FOR A TAXABLE YEAR B EGINNING AFTER 20
	77	+	DECEMBER 31, 2023. 21
79	78
80		-	2. ~~A BONA FIDE MARYLAND FIRE~~ , ~~RESCUE, OR 21~~
81		-	~~EMERGENCY MEDICAL SE RVICES ORGANIZATION ; 22~~
	79	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22
	80	+	1, 2023. 23
82	81
83		-	3. AN AUXILIARY ORGANIZ ATION OF A BONA FIDE 23
84		-	MARYLAND FIRE, RESCUE, OR EMERGENCY MEDICAL SERVICES ORGANIZATIO N; 24
85		-
86		-	4. THE UNITED STATES COAST GUARD AUXILIARY; 25
87		-
88		-	5. THE MARYLAND DEFENSE FORCE; OR 26
89		-
90		-	6. THE MARYLAND CIVIL AIR PATROL. 27
91		-
92		-	(III) “PUBLIC SAFETY VOLUNTE ER” MEANS A MEMBER OF A 28
93		-	PUBLIC SAFETY ORGANI ZATION. 29
94		-
95		-	(2) The subtraction under subsection (a) of this section includes an amount 30
96		-	equal to the amount specified in paragraph [(3)] (4) of this subsection if an individual is a 31 SENATE BILL 94 3
97		-
98		-
99		-	qualifying PUBLIC SAFETY volunteer [fire, rescue, or emergency medical services member] 1
100		-	for the taxable year, as determined under paragraph [(2)] (3) of this subsection. 2
101		-
102		-	[(2)] (3) An individual is a qualifying PUBLIC SAFETY volunteer [fire, 3
103		-	rescue, or emergency medical services member] for the taxable year eligible for the 4
104		-	subtraction modification under this subsection if the individual: 5
105		-
106		-	(i) is an active member of[: 6
107		-
108		-	1. a bona fide Maryland fire, rescue, or emergency medical 7
109		-	services organization; 8
110		-
111		-	2. an auxiliary organization of a bona fide Maryland fire, 9
112		-	rescue, or emergency medical services organization; 10
113		-
114		-	3. the United States Coast Guard Auxiliary; 11
115		-
116		-	4. the Maryland Defense Force; or 12
117		-
118		-	5. the Maryland Civil Air Patrol] A PUBLIC SAFETY 13
119		-	ORGANIZATION ; 14
120		-
121		-	(ii) serves the PUBLIC SAFETY organization in a volunteer capacity 15
122		-	without compensation, except nominal expenses or meals; 16
123		-
124		-	(iii) 1. qualifies for active status during the taxable year under: 17
125		-
126		-	A. A POLICE AUXILIARY O R RESERVE VOLUNTEER 18
127		-	PROGRAM APPROVED BY THE MARYLAND POLICE TRAINING AND STANDARDS 19
128		-	COMMISSION IN CONJUNC TION WITH THE MARYLAND ASSOCIATION OF COUNTIES 20
129		-	AND THE MARYLAND MUNICIPAL LEAGUE, THAT INCLUDES UNIFORM SYSTEMS FOR 21
130		-	QUALIFICATION AND RE CORD KEEPING , IF THE PROGRAM IS IN CORPORATED INTO 22
131		-	THE POLICE AGENCY ’S RULES AND REGULATI ONS; 23
132		-
133		-	B. a volunteer fire, rescue, or emergency medical services 24
134		-	personnel or auxiliary length of service award program operated by a county or municipal 25
135		-	corporation of the State, if the length of service award program requires for active status 26
136		-	qualification a minimum of 50 points per year and that points be earned in at least two 27
137		-	different categories; or 28
138		-
139		-	[B.] C. a point system established by a county or municipal 29
140		-	corporation that does not operate a volunteer fire, rescue, or emergency medical services 30
141		-	personnel or auxiliary length of service award program or by the United States Coast Guard 31
142		-	Auxiliary, the Maryland Defense Force, or the Maryland Civil Air Patrol, to identify active 32
143		-	members of a volunteer fire, rescue, or emergency medical services organization or 33 4 SENATE BILL 94
144		-
145		-
146		-	auxiliary organization, if the point system requires for active status qualification a 1
147		-	minimum of 50 points per year and that points be earned in at least two different categories; 2
148		-
149		-	2. has maintained active status for at least 25 years under: 3
150		-
151		-	A. A POLICE AUXILIARY O R RESERVE VOLUNTEER 4
152		-	PROGRAM; OR 5
153		-
154		-	B. a volunteer fire, rescue, or emergency medical services 6
155		-	personnel or auxiliary length of service award program or a point system established in 7
156		-	lieu of a length of service award program; 8
157		-
158		-	3. is a member of the National Guard or other reserve 9
159		-	component of the United States armed forces who has been ordered into active military 10
160		-	service and who serves on active duty in the armed forces of the United States during the 11
161		-	taxable year; or 12
162		-
163		-	4. is a civilian or a member of the Merchant Marine on 13
164		-	assignment in support of the armed forces of the United States during the taxable year in 14
165		-	an area designated as a combat zone by executive order of the President; and 15
166		-
167		-	(iv) will have been an active member of a [bona fide Maryland fire, 16
168		-	rescue, or emergency medical services organization, an auxiliary organization of a bona fide 17
169		-	Maryland fire, rescue, or emergency medical services organization, or the United States 18
170		-	Coast Guard Auxiliary, the Maryland Defense Force, or the Maryland Civil Air Patrol] 19
171		-	PUBLIC SAFETY ORGAN IZATION for at least 36 months during the last 10 calendar years 20
172		-	by December 31 of the taxable year. 21
173		-
174		-	(3) (4) The amount of the subtraction under paragraph (1) of this 22
175		-	subsection is equal to: 23
176		-
177		-	(i) $4,750 for a taxable year beginning after December 31, 2017, but 24
178		-	before January 1, 2019; 25
179		-
180		-	(ii) $5,000 for a taxable year beginning after December 31, 2018, but 26
181		-	before January 1, 2020; 27
182		-
183		-	(iii) $6,000 for a taxable year beginning after December 31, 2019, but 28
184		-	before January 1, 2021; 29
185		-
186		-	(iv) $6,500 for a taxable year beginning after December 31, 2020, but 30
187		-	before January 1, 2022; [and] 31
188		-
189		-	(v) $7,000 for a taxable year beginning after December 31, 2021 32
190		-	2022, BUT BEFORE JANUARY 1, 2024; AND 33
191		-	SENATE BILL 94 5
192		-
193		-
194		-	(VI) (II) $10,000 FOR A TAXABLE YEAR B EGINNING AFTER 1
195		-	DECEMBER 31, 2023. 2
196		-
197		-	[(4)] (5) (i) EACH POLICE AGENCY SH ALL: 3
198		-
199		-	1. MAINTAIN A RECORD OF THE ACTIVITIES OF EA CH 4
200		-	MEMBER OF A POLICE A UXILIARY OR RESERVE DURING THE CALENDAR YEAR; 5
201		-
202		-	2. PROVIDE EACH MEMBER A REPORT BY FEBRUARY 15 6
203		-	OF THE FOLLOWING Y EAR INDICATING THAT THE MEMBER QUALIFIED DURING THE 7
204		-	PRECEDING CALENDAR Y EAR; AND 8
205		-
206		-	3. PROVIDE A REPORT THA T INCLUDES THE NAMES , THE 9
207		-	SOCIAL SECURITY NUMBERS , AND A CERTIFICATION THAT THE INDIVIDUAL 10
208		-	QUALIFIED FOR THE SU BTRACTION MODIFICATI ON UNDER THIS SE CTION. 11
209		-
210		-	(II) Each fire, rescue, or emergency medical services organization or 12
211		-	auxiliary organization shall: 13
212		-
213		-	1. maintain a record of the points earned by each individual 14
214		-	during each calendar year; 15
215		-
216		-	2. provide each member a report identifying the number of 16
217		-	points earned in each category by February 15 of the following year; and 17
218		-
219		-	3. provide a report that includes the names, Social Security 18
220		-	numbers, and points earned by those members qualifying for the subtraction modification 19
221		-	under this subsection to the Maryland State Firemen’s Association by May 1 of the 20
222		-	following year. 21
223		-
224		-	[(ii)] (III) An individual may not qualify for the subtraction under 22
225		-	this subsection based on membership in the United States Coast Guard Auxiliary, the 23
226		-	Maryland Defense Force, or the Maryland Civil Air Patrol unless the United States Coast 24
227		-	Guard Auxiliary, the Maryland Defense Force, or the Maryland Civil Air Patrol: 25
228		-
229		-	1. maintains a record of the points earned by each individual 26
230		-	during each calendar year; 27
231		-
232		-	2. provides each member a report identifying the number of 28
233		-	points earned in each category by February 15 of the following year; and 29
234		-
235		-	3. provides a report that includes the names, Social Security 30
236		-	numbers, and points earned by those members qualifying for the subtraction modification 31
237		-	under this subsection to the Comptroller on or before October 1 of each year. 32
238		-	6 SENATE BILL 94
239		-
240		-
241		-	[(5)] (6) To qualify for the subtraction modification under this subsection, 1
242		-	an individual shall attach to the individual’s income tax return a copy of the report provided 2
243		-	by the PUBLIC SAFETY organization under paragraph [(4)] (5) of this subsection. 3
244		-
245		-	[(6)] (7) (I) ON OR BEFORE OCTOBER 1 EACH YEAR, EACH BONA 4
246		-	FIDE MARYLAND POLICE AGENC Y SHALL SUBMIT TO TH E DEPARTMENT OF PUBLIC 5
247		-	SAFETY AND CORRECTION AL SERVICES AND THE OFFICE OF THE COMPTROLLER A 6
248		-	REPORT LISTING THE N AMES AND SOCIAL SECURITY NUMBERS OF I NDIVIDUALS 7
249		-	WHO QUALIFIED FOR TH E SUBTRACTION MODIFI CATION UNDER THIS SU BSECTION 8
250		-	FOR THE PRECEDING TA XABLE YEAR. 9
251		-
252		-	(II) On or before October 1 of each year, the Maryland State 10
253		-	Firemen’s Association shall submit to the Department of Public Safety and Correctional 11
254		-	Services and the Office of the Comptroller a report stating the participation in the point 12
255		-	system by the various local subdivisions with the names and Social Security numbers of 13
256		-	individuals who qualified for the subtraction modification under this subsection for the 14
257		-	preceding taxable year. 15
258		-
259		-	[(7)] (8) (i) A person may not knowingly make or cause any false 16
260		-	statement or report to be made in any application or in any document required under this 17
261		-	subsection. 18
262		-
263		-	(ii) Any person who violates or attempts to violate any provision of 19
264		-	subparagraph (i) of this paragraph shall be subject to a fine of $1,000. 20
265		-
266		-	[(l) (1) The subtraction under subsection (a) of this section includes an amount 21
267		-	equal to the amount specified in paragraph (3) of this subsection if an individual is a 22
268		-	qualifying police auxiliary or reserve volunteer for the taxable year, as determined under 23
269		-	paragraph (2) of this subsection. 24
270		-
271		-	(2) An individual is a qualifying police auxiliary or reserve volunteer for 25
272		-	the taxable year eligible for the subtraction modification under this subsection if the 26
273		-	individual: 27
274		-
275		-	(i) is an active member of a bona fide Maryland police agency; 28
276		-
277		-	(ii) serves the organization in a volunteer capacity without 29
278		-	compensation, except nominal expenses or meals; 30
279		-
280		-	(iii) 1. qualifies for active status during the taxable year under a 31
281		-	police auxiliary or reserve volunteer program approved by the Police Training and 32
282		-	Standards Commission in conjunction with the Maryland Association of Counties and the 33
283		-	Maryland Municipal League, that includes uniform systems for qualification and record 34
284		-	keeping, if the program is incorporated into the police agency’s rules and regulations; 35
285		-	SENATE BILL 94 7
286		-
287		-
288		-	2. has maintained active status for at least 25 years under 1
289		-	the police auxiliary or reserve volunteer program; 2
290		-
291		-	3. is a member of the National Guard or other reserve 3
292		-	component of the United States armed forces who has been ordered into active military 4
293		-	service and who serves on active duty in the armed forces of the United States during the 5
294		-	taxable year; or 6
295		-
296		-	4. is a civilian or a member of the Merchant Marine on 7
297		-	assignment in support of the armed forces of the United States during the taxable year in 8
298		-	an area designated as a combat zone by executive order of the President; and 9
299		-
300		-	(iv) will have been an active member of a bona fide police agency for 10
301		-	at least 36 months during the last 10 calendar years by December 31 of the taxable year. 11
302		-
303		-	(3) The amount of the subtraction under paragraph (1) of this subsection is 12
304		-	equal to: 13
305		-
306		-	(i) $4,500 for a taxable year beginning after December 31, 2016, but 14
307		-	before January 1, 2018; 15
308		-
309		-	(ii) $4,750 for a taxable year beginning after December 31, 2017, but 16
310		-	before January 1, 2019; and 17
311		-
312		-	(iii) $5,000 for a taxable year beginning after December 31, 2018. 18
313		-
314		-	(4) Each police agency shall: 19
315		-
316		-	(i) maintain a record of the activities of each police auxiliary or 20
317		-	reserve volunteer during the calendar year; 21
318		-
319		-	(ii) provide each member a report by February 15 of the following 22
320		-	year indicating that the member qualified during the preceding calendar year; and 23
321		-
322		-	(iii) provide a report that includes the names, Social Security 24
323		-	numbers, and a certification that the individual qualified for the subtraction modification 25
324		-	under this section. 26
325		-
326		-	(5) To qualify for the subtraction modification under this subsection, an 27
327		-	individual shall attach to the individual’s income tax return a copy of the report provided 28
328		-	by the police agency under paragraph (4) of this subsection. 29
329		-
330		-	(6) On or before October 1 of each year, the police agency shall submit to 30
331		-	the Department of Public Safety and Correctional Services and the Office of the 31
332		-	Comptroller a report listing the names and Social Security numbers of individuals who 32
333		-	qualified for the subtraction modification under this subsection for the preceding taxable 33
334		-	year. 34 8 SENATE BILL 94
335		-
336		-
337		-
338		-	(7) (i) A person may not knowingly make or cause any false statement 1
339		-	or report to be made in any application or in any document required under this subsection. 2
340		-
341		-	(ii) Any person who violates or attempts to violate any provision of 3
342		-	subparagraph (i) of this paragraph shall be subject to a fine of $1,000.] 4
343		-
344		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 5
345		-	1, 2023, and shall be applicable to all taxable years beginning after December 31, 2022. 6
346		-
347		-
348		-
349		-
350		-	Approved:
351		-	________________________________________________________________________________
352		-	Governor.
353		-	________________________________________________________________________________
354		-	President of the Senate.
355		-	________________________________________________________________________________
356		-	Speaker of the House of Delegates.