![]() The bill also affects “disparity grants” that the state awards to poorer counties to help them pay for county government services.Ĭurrently, counties receive the grant if they charge a local income tax of at least 2.6%. The bill gives them the flexibility to be progressive,” Rosapepe said. “Without this bill, counties are forced to have the same tax rate on working class people as well as the high income people. If counties with the maximum 3.2% rate wanted to cut taxes on some residents, they’d have no way to make up the lost revenue by raising taxes on the wealthy residents. James Rosapepe, a Democrat who represents Anne Arundel and Prince George’s counties. Two-thirds of Maryland’s residents live in areas with the maximum 3.2%, so they would either see no change or a tax cut, based on what their local government decides, said Sen. Harford County currently charges 3.06%, Carroll County charges 3.03% while Anne Arundel’s current rate, 2.81%, is the fourth-lowest in the state. Twelve jurisdictions charge the maximum of 3.2%, including Baltimore City, Baltimore County and Howard County as well as Montgomery and Prince George’s counties in the D.C. But local leaders could choose to vary the rates on different levels of income, similar to how state and federal income taxes have different rates for different tax brackets. Under the legislation approved by state lawmakers, the minimum local income tax rate would rise to 2.25% - matching the rate set by Worcester County, the lowest actual rate charged anywhere in the state - and the maximum would remain unchanged. Under current state law, each county and Baltimore City must set the local income tax rate at a minimum of 1% up to a maximum of 3.2% - with whatever percentage local leaders pick charged across the board. “It’s like dumping gas on a pile of dry wood and handing them a match and after the fire is blazing, saying: ‘We didn’t start the fire.'” “This bill gives local governments all the tools and mandates to raise taxes,” he said. Bryan Simonaire, who also is the Republican leader in the state Senate, argued against the bill, saying it could lead to increased taxes. Baltimore Sun eNewspaper Home Page Close MenuĪnne Arundel County Sen.
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