The Maryland General Assembly passed a $61 billion budget Friday that includes expansions of health care services, funding for public education, and tax cuts on baby products and other health care items, as well as for retirees in Maryland. Governor Hogan signed the tax cuts in a bill signing ceremony alongside President Ferguson, Speaker Jones, and key lawmakers from both the House and Senate
The tax relief measures enacted Friday include:
- The Retirement Tax Elimination Act provides relief for retirees 65 and older making up to $100,000 in retirement income, and married couples making up to $150,000 in retirement income. ($1.55 billion)
- The Work Opportunity Tax Credit incentivizes employers and businesses to hire and retain workers from underserved communities that have faced significant barriers to employment. ($195 million)
- Family Budget Boosters: sales tax exemptions for child care products such as diapers, car seats, and baby bottles, and critical health products such as dental hygiene products, diabetic care products, and medical devices. ($115.6 million)
The state’s operating budget for the fiscal 2023 year, which begins July 1st, will increase 10.5% from the current fiscal year. The budget includes a $211 million surplus while maintaining a $2.4 billion Rainy Day Fund balance.
From the Governor’s press release:
“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,” said Governor Hogan. “Many said this could never be done in Maryland, but together we did it. I want to sincerely thank the legislative leaders on both sides of the aisle and in both houses for coming together to help more Marylanders keep more of their hard-earned tax dollars in their own pockets, particularly our seniors on fixed incomes.”
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