EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0108*
SENATE BILL 108
Q3 4lr0756
(PRE–FILED)
By: Senator Bailey
Requested: September 28, 2023
Introduced and read first time: January 10, 2024
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Income Tax – Subtraction Modification – Police Auxiliary and Reserve 2
Volunteers 3
FOR the purpose of increasing a subtraction modification under the Maryland income tax 4
for an individual who is a qualifying police auxiliary or reserve volunteer; and 5
generally relating to a subtraction modification under the Maryland income tax for 6
an individual who is a qualifying police auxiliary or reserve volunteer. 7
BY repealing and reenacting, without amendments, 8
Article – Tax – General 9
Section 10–208(a) 10
Annotated Code of Maryland 11
(2022 Replacement Volume and 2023 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Tax – General 14
Section 10–208(i–1) 15
Annotated Code of Maryland 16
(2022 Replacement Volume and 2023 Supplement) 17
BY repealing 18
Article – Tax – General 19
Section 10–208(l) 20
Annotated Code of Maryland 21
(2022 Replacement Volume and 2023 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – Tax – General 25 2 SENATE BILL 108
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 TH E FOLLOWING WORDS HA VE THE 5
MEANINGS INDICATED . 6
(II) “PUBLIC SAFETY ORGANIZ ATION” MEANS: 7
1. A BONA FIDE MARYLAND POLICE AGENC Y; 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 SERVICES ORGANIZATIO N; 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[: 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 108 3
3. the United States Coast Guard Auxiliary; 1
4. the Maryland Defense Force; or 2
5. the Maryland Civil Air Patrol] A PUBLIC SAFETY 3
ORGANIZATION ; 4
(ii) serves the PUBLIC SAFETY organization in a volunteer capacity 5
without compensation, except nominal expenses or meals; 6
(iii) 1. qualifies for active status during the taxable year under: 7
A. A POLICE AUXILIARY O R RESERVE VOLUNTEER 8
PROGRAM APPROVED BY THE MARYLAND POLICE TRAINING AND STANDARDS 9
COMMISSION IN CONJUNC TION WITH THE MARYLAND ASSOCIATION OF COUNTIES 10
AND THE MARYLAND MUNICIPAL LEAGUE THAT INCLUDES UNIFORM SYSTEMS FOR 11
QUALIFICATION AND RE CORD KEEPING , IF THE PROGRAM IS IN CORPORATED INTO 12
THE POLICE AGENCY ’S RULES AND REGULATI ONS; 13
B. a volunteer fire, rescue, or emergency medical services 14
personnel or auxiliary length of service award program operated by a county or municipal 15
corporation of the State, if the length of service award program requires for active status 16
qualification a minimum of 50 points per year and that points be earned in at least two 17
different categories; or 18
[B.] C. a point system established by a county or municipal 19
corporation that does not operate a volunteer fire, rescue, or emergency medical services 20
personnel or auxiliary length of service award program or by the United States Coast Guard 21
Auxiliary, the Maryland Defense Force, or the Maryland Civil Air Patrol, to identify active 22
members of a volunteer fire, rescue, or emergency medical services organization or 23
auxiliary organization, if the point system requires for active status qualification a 24
minimum of 50 points per year and that points be earned in at least two different categories; 25
2. has maintained active status for at least 25 years under: 26
A. A POLICE AUXILIARY O R RESERVE VOLUNTEER 27
PROGRAM; OR 28
B. a volunteer fire, rescue, or emergency medical services 29
personnel or auxiliary length of service award program or a point system established in 30
lieu of a length of service award program; 31
3. is a member of the National Guard or other reserve 32
component of the United States armed forces who has been ordered into active military 33
service and who serves on active duty in the armed forces of the United States during the 34 4 SENATE BILL 108
taxable year; or 1
4. is a civilian or a member of the Merchant Marine on 2
assignment in support of the armed forces of the United States during the taxable year in 3
an area designated as a combat zone by executive order of the President; and 4
(iv) will have been an active member of a [bona fide Maryland fire, 5
rescue, or emergency medical services organization, an auxiliary organization of a bona fide 6
Maryland fire, rescue, or emergency medical services organization, or the United States 7
Coast Guard Auxiliary, the Maryland Defense Force, or the Maryland Civil Air Patrol] 8
PUBLIC SAFETY ORGAN IZATION for at least 36 months during the last 10 calendar years 9
by December 31 of the taxable year. 10
[(3)] (4) The amount of the subtraction under paragraph [(1)] (2) of this 11
subsection is equal to[: 12
(i) $4,750 for a taxable year beginning after December 31, 2017, but 13
before January 1, 2019; 14
(ii) $5,000 for a taxable year beginning after December 31, 2018, but 15
before January 1, 2020; 16
(iii) $6,000 for a taxable year beginning after December 31, 2019, but 17
before January 1, 2021; 18
(iv) $6,500 for a taxable year beginning after December 31, 2020, but 19
before January 1, 2022; and 20
(v)] $7,000 [for a taxable year beginning after December 31, 2021]. 21
[(4)] (5) (i) EACH POLICE AGENCY SH ALL: 22
1. MAINTAIN A RECORD OF THE ACTIVITIES OF EA CH 23
MEMBER OF A POLICE A UXILIARY OR RESERVE DURING THE CALENDAR YEAR; 24
2. PROVIDE EACH MEMBER A REPORT BY FEBRUARY 15 25
OF THE FOLLOWING YEA R INDICATING THAT TH E MEMBER QUALIFIED D URING THE 26
PRECEDING CALENDAR Y EAR; AND 27
3. PROVIDE A REPORT THA T INCLUDES THE NAMES , 28
SOCIAL SECURITY NUMBERS , AND A CERTIFICATION THAT THE INDIVIDUAL 29
QUALIFIED FOR THE SU BTRACTION MODIFICATI ON UNDER THIS SECTIO N. 30
(II) Each fire, rescue, or emergency medical services organization or 31
auxiliary organization shall: 32 SENATE BILL 108 5
1. maintain a record of the points earned by each individual 1
during each calendar year; 2
2. provide each member a report identifying the number of 3
points earned in each category by February 15 of the following year; and 4
3. provide a report that includes the names, Social Security 5
numbers, and points earned by those members qualifying for the subtraction modification 6
under this subsection to the Maryland State Firemen’s Association by May 1 of the 7
following year. 8
[(ii)] (III) An individual may not qualify for the subtraction under 9
this subsection based on membership in the United States Coast Guard Auxiliary, the 10
Maryland Defense Force, or the Maryland Civil Air Patrol unless the United States Coast 11
Guard Auxiliary, the Maryland Defense Force, or the Maryland Civil Air Patrol: 12
1. maintains a record of the points earned by each individual 13
during each calendar year; 14
2. provides each member a report identifying the number of 15
points earned in each category by February 15 of the following year; and 16
3. provides a report that includes the names, Social Security 17
numbers, and points earned by those members qualifying for the subtraction modification 18
under this subsection to the Comptroller on or before October 1 of each year. 19
[(5)] (6) To qualify for the subtraction modification under this subsection, 20
an individual shall attach to the individual’s income tax return a copy of the report provided 21
by the PUBLIC SAFETY organization under paragraph [(4)] (5) of this subsection. 22
[(6)] (7) (I) ON OR BEFORE OCTOBER 1 EACH YEAR, EACH BONA 23
FIDE MARYLAND POLICE AGENC Y SHALL SUBMIT TO TH E DEPARTMENT OF PUBLIC 24
SAFETY AND CORRECTIONAL SERVICES AND THE OFFICE OF THE COMPTROLLER A 25
REPORT LISTING THE N AMES AND SOCIAL SECURITY NUMBERS OF I NDIVIDUALS 26
WHO QUALIFIED FOR THE SUBTRACTION MODIFICATION UNDER T HIS SUBSECTION 27
FOR THE PRECEDING TA XABLE YEAR. 28
(II) On or before October 1 of each year, the Maryland State 29
Firemen’s Association shall submit to the Department of Public Safety and Correctional 30
Services and the Office of the Comptroller a report stating the participation in the point 31
system by the various local subdivisions with the names and Social Security numbers of 32
individuals who qualified for the subtraction modification under this subsection for the 33
preceding taxable year. 34
[(7)] (8) (i) A person may not knowingly make or cause any false 35 6 SENATE BILL 108
statement or report to be made in any application or in any document required under this 1
subsection. 2
(ii) Any person who violates or attempts to violate any provision of 3
subparagraph (i) of this paragraph shall be subject to a fine of $1,000. 4
[(l) (1) The subtraction under subsection (a) of this section includes an amount 5
equal to the amount specified in paragraph (3) of this subsection if an individual is a 6
qualifying police auxiliary or reserve volunteer for the taxable year, as determined under 7
paragraph (2) of this subsection. 8
(2) An individual is a qualifying police auxiliary or reserve volunteer for 9
the taxable year eligible for the subtraction modification under this subsection if the 10
individual: 11
(i) is an active member of a bona fide Maryland police agency; 12
(ii) serves the organization in a volunteer capacity without 13
compensation, except nominal expenses or meals; 14
(iii) 1. qualifies for active status during the taxable year under a 15
police auxiliary or reserve volunteer program approved by the Police Training and 16
Standards Commission in conjunction with the Maryland Association of Counties and the 17
Maryland Municipal League, that includes uniform systems for qualification and record 18
keeping, if the program is incorporated into the police agency’s rules and regulations; 19
2. has maintained active status for at least 25 years under 20
the police auxiliary or reserve volunteer program; 21
3. is a member of the National Guard or other reserve 22
component of the United States armed forces who has been ordered into active military 23
service and who serves on active duty in the armed forces of the United States during the 24
taxable year; or 25
4. is a civilian or a member of the Merchant Marine on 26
assignment in support of the armed forces of the United States during the taxable year in 27
an area designated as a combat zone by executive order of the President; and 28
(iv) will have been an active member of a bona fide police agency for 29
at least 36 months during the last 10 calendar years by December 31 of the taxable year. 30
(3) The amount of the subtraction under paragraph (1) of this subsection is 31
equal to: 32
(i) $4,500 for a taxable year beginning after December 31, 2016, but 33
before January 1, 2018; 34
SENATE BILL 108 7
(ii) $4,750 for a taxable year beginning after December 31, 2017, but 1
before January 1, 2019; and 2
(iii) $5,000 for a taxable year beginning after December 31, 2018. 3
(4) Each police agency shall: 4
(i) maintain a record of the activities of each police auxiliary or 5
reserve volunteer during the calendar year; 6
(ii) provide each member a report by February 15 of the following 7
year indicating that the member qualified during the preceding calendar year; and 8
(iii) provide a report that includes the names, Social Security 9
numbers, and a certification that the individual qualified for the subtraction modification 10
under this section. 11
(5) To qualify for the subtraction modification under this subsection, an 12
individual shall attach to the individual’s income tax return a copy of the report provided 13
by the police agency under paragraph (4) of this subsection. 14
(6) On or before October 1 of each year, the police agency shall submit to 15
the Department of Public Safety and Correctional Services and the Office of the 16
Comptroller a report listing the names and Social Security numbers of individuals who 17
qualified for the subtraction modification under this subsection for the preceding taxable 18
year. 19
(7) (i) A person may not knowingly make or cause any false statement 20
or report to be made in any application or in any document required under this subsection. 21
(ii) Any person who violates or attempts to violate any provision of 22
subparagraph (i) of this paragraph shall be subject to a fine of $1,000.] 23
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 24
1, 2024, and shall be applicable to all taxable years beginning after December 31, 2023. 25