MD
Maryland House Bill HB634

Maryland 2025 Regular Session

Maryland House Bill HB634

Introduced
1/23/25  
Refer
1/23/25  
Report Pass
3/10/25  
Engrossed
3/13/25  
Refer
3/17/25  
Report Pass
4/4/25  
Enrolled
4/7/25  
Chaptered
5/20/25  

Caption

Income Tax - Income Tax Reconciliation Program - Established (Maryland Fair Taxation for Justice-Involved Individuals Act)

Impact

The implementation of HB634 could significantly change how tax liabilities are managed for individuals who have been sentenced to terms of imprisonment. Specifically, from taxable years beginning after December 31, 2024, the bill allows individuals to apply for installment payment plans that could extend up to a maximum of 10 years. Such provisions are especially important as they address the unique challenges faced by those unable to work or file taxes while incarcerated. The Comptroller will oversee this program, ensuring that eligible individuals are informed and assisted in navigating this system.

Summary

House Bill 634, known as the Maryland Fair Taxation for Justice-Involved Individuals Act, establishes an Income Tax Reconciliation Program designed to assist individuals involved in the justice system. This program allows individuals who are currently incarcerated or were recently released to engage in payment plans for unpaid income tax that is due for years during their incarceration. The bill aims to alleviate the financial burden on justice-involved individuals by waiving interest and penalties on these unpaid taxes, thus promoting financial rehabilitation and reducing barriers to reintegration into society.

Sentiment

General sentiment around HB634 appears to be supportive, particularly among advocacy groups focused on criminal justice reform and rehabilitation. Proponents argue that the bill represents a meaningful step toward addressing economic disparities faced by justice-involved individuals and assists in reducing recidivism rates by facilitating their financial stability upon release. However, some critics may express concern over the potential loss of tax revenue for the state, raising questions about balancing fiscal responsibility with social justice initiatives.

Contention

Notable points of contention may arise regarding how the program will be implemented and monitored. Critics may argue about the effectiveness of waiving penalties and interest, and whether this approach truly benefits individuals or simply extends tax liabilities without addressing the underlying issues that contribute to these debts. Furthermore, the requirement for the Comptroller to cooperate with the Department of Public Safety and Correctional Services in creating an awareness campaign will be crucial for the program's success, as it relies heavily on effective communication and outreach to the impacted population.

Companion Bills

MD SB295

Crossfiled Income Tax - Income Tax Reconciliation Program - Established (Maryland Fair Taxation for Justice-Involved Individuals Act)

Previously Filed As

MD HB1101

Maryland Maternity Care Access Program, Fund, and Income Tax Checkoff - Establishment

MD SB901

Maryland Maternity Care Access Program, Fund, and Income Tax Checkoff - Establishment

MD HB451

Tax Assistance for Low-Income Marylanders - Funding

MD SB1142

Tax Assistance for Low-Income Marylanders - Funding

MD SB676

Tax Assistance for Low-Income Marylanders - Funding

MD HB1506

Tax Clinics for Low-Income Marylanders - Funding

MD HB346

Tax Clinics for Low-Income Marylanders - Funding - Repeal of Sunset

MD SB312

Tax Clinics for Low-Income Marylanders - Funding - Repeal of Sunset

MD HB337

Income Tax – Capital Gains, Dividends, and Foreign–Derived Intangible Income – Alterations (Investing in Marylanders Act of 2023)

MD HB316

Income Tax Checkoff - Maryland Veterans Trust Fund

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