Maryland 2024 Regular Session

Maryland Senate Bill SB422 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	sb0422
6	6
7	7	SENATE BILL 422
8	8	Q3 4lr1915
9	9
10	10	By: Senator Rosapepe
11	11	Introduced and read first time: January 19, 2024
12	12	Assigned to: Budget and Taxation
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Income Tax – Subtraction Modification – Foreign Service Retirement Income 2
19	19
20	20	FOR the purpose of allowing a subtraction modification under the Maryland income tax for 3
21	21	certain foreign service retirement income received by an individual during the 4
22	22	taxable year; providing that foreign service retirement income that is included in the 5
23	23	subtraction allowed under this Act may not be taken into account for purposes of a 6
24	24	certain subtraction modification under the Maryland income tax for certain 7
25	25	retirement income; and generally relating to a subtraction modification under the 8
26	26	Maryland income tax for foreign service retirement income. 9
27	27
28	28	BY repealing and reenacting, without amendments, 10
29	29	Article – Tax – General 11
30	30	Section 10–207(a) 12
31	31	Annotated Code of Maryland 13
32	32	(2022 Replacement Volume and 2023 Supplement) 14
33	33
34	34	BY adding to 15
35	35	Article – Tax – General 16
36	36	Section 10–207(pp) 17
37	37	Annotated Code of Maryland 18
38	38	(2022 Replacement Volume and 2023 Supplement) 19
39	39
40	40	BY repealing and reenacting, with amendments, 20
41	41	Article – Tax – General 21
42	42	Section 10–209(d) 22
43	43	Annotated Code of Maryland 23
44	44	(2022 Replacement Volume and 2023 Supplement) 24
45	45
46	46	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
47	47	That the Laws of Maryland read as follows: 26
48	48	2 SENATE BILL 422
49	49
50	50
51	51	Article – Tax – General 1
52	52
53	53	10–207. 2
54	54
55	55	(a) To the extent included in federal adjusted gross income, the amounts under 3
56	56	this section are subtracted from the federal adjusted gross income of a resident to determine 4
57	57	Maryland adjusted gross income. 5
58	58
59	59	(PP) (1) IN THIS SUBSECTION , “FOREIGN SERVICE RETIREMENT INCOME ” 6
60	60	MEANS RETIREMENT INC OME FROM THE FOREIGN SERVICE RETIREMENT AND 7
61	61	DISABILITY SYSTEM OR THE FOREIGN SERVICE PENSION SYSTEM RECEIVED AS A 8
62	62	RESULT OF EMPLOYMENT IN THE FOREIGN SERVICE OF THE UNITED STATES. 9
63	63
64	64	(2) THE SUBTRACTION UNDER SUBSECTION (A) OF THIS SECTION 10
65	65	INCLUDES: 11
66	66
67	67	(I) IF, ON THE LAST DAY OF T HE TAXABLE YEAR , THE 12
68	68	INDIVIDUAL IS UNDER THE AGE OF 55 YEARS, THE FIRST $12,500 OF FOREIGN 13
69	69	SERVICE RETIREMENT INCOME RE CEIVED BY AN INDIVID UAL DURING THE TAXAB LE 14
70	70	YEAR; AND 15
71	71
72	72	(II) IF, ON THE LAST DAY OF T HE TAXABLE YEAR , THE 16
73	73	INDIVIDUAL IS AT LEA ST 55 YEARS OLD, THE FIRST $20,000 OF FOREIGN SERVICE 17
74	74	RETIREMENT INCOME RE CEIVED BY AN INDIVID UAL DURING THE TAXAB LE YEAR. 18
75	75
76	76	10–209. 19
77	77
78	78	(d) (1) Military retirement income that is included in the subtraction under § 20
79	79	10–207(q) of this subtitle may not be taken into account for purposes of the subtraction 21
80	80	under this section. 22
81	81
82	82	(2) Public safety employee retirement income that is included in the 23
83	83	subtraction under § 10–207(mm) of this subtitle may not be taken into account for purposes 24
84	84	of the subtraction under this section. 25
85	85
86	86	(3) FOREIGN SERVICE RETIR EMENT INCOME THAT IS INCLUDED IN 26
87	87	THE SUBTRACTION UNDE R § 10–207(PP) OF THIS SUBTITLE MAY NOT BE TAKEN INTO 27
88	88	ACCOUNT FOR PURPOSES OF THE SUBTRACTION U NDER THIS SECTION. 28
89	89
90	90	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 29
91	91	1, 2024, and shall be applicable to all taxable years beginning after December 31, 2023. 30