Largest Tax Cut In MD History Signed By Gov. Hogan

ANNAPOLIS, MD — A nearly $2 billion tax cut designed to help retirees, working families, and small businesses — the largest tax cut in Maryland history — was signed by Gov. Larry Hogan on Friday.

Maryland lawmakers approved a $61 billion budget Friday that includes expansions of health care services, public education spending and assistance for vulnerable residents, according to Maryland Matters. The state’s fiscal 2023 year budget, which starts July 1, will increase spending 10.5 percent from the current year.

The budget includes a $211 million surplus and maintains a $2.4 billion Rainy Day Fund balance, the political website said.

The budget package includes the Retirement Tax Elimination Act, which will provide an additional $1.86 billion in tax relief for Maryland retirees, families, and small businesses, Hogan's office said in a news release.

Combined with the $100 million gas tax suspension enacted March 18, the governor's office said the state is delivering nearly $2 billion in tax relief during this legislation session.

Related: Maryland Gas Tax Halted For 30 Days Under Emergency Bill

"Our state is in a stronger fiscal position today than it has ever been before, and because of that, we are able to keep our commitment to Maryland’s retirees," Hogan said in a statement. "Many said this could never be done in Maryland, but together we did it.

"I want to thank the legislative leaders on both sides of the aisle for coming together and overcoming the divisiveness and dysfunction that plagues our nation’s capital," he said. "We have put compromise ahead of conflict, and we have delivered real results for the Marylanders who sent us here."

The retiree tax credit is up to $1,000 for a person and $1,750 for a couple and applies to residents 65 and older who make less than $100,000 in federal adjusted gross income annually, or couples earning less than $150,000, Maryland Matters reported.

The budget bill also expands the hometown hero tax exemption, which lets retired law enforcement, correctional officers, fire and emergency personnel to exempt $15,000 of retirement income annually.

"The bills we signed today will give families and seniors a needed tax break, put more people back to work and put a little more money in people’s pockets," said House Speaker Adrienne Jones. "Investing state dollars to help vulnerable populations delivers on our promise to use this session to support our residents through post-pandemic recovery."