VIDEO RELEASE: Governor Hogan Enacts Largest Tax Cut Package In State History; Retirement Tax Elimination Act Becomes Law
Press Release
Governor Larry Hogan today enacted the largest tax cut package in state history, signing into law $1.86 billion in relief for retirees, working families, and small businesses. Combined with the recent $100 million gas tax suspension, this legislative session will deliver nearly $2 billion in tax relief.
"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."
The governor was joined by Senate President Bill Ferguson and House Speaker Adrienne A. Jones, along with lawmakers from both the House and Senate.
The tax relief measures enacted today 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)
This brings the total tax, toll, and fee relief under the Hogan administration to nearly $4.7 billion.
Governor Hogan first pledged to pursue retirement tax relief as a candidate in August 2014, and proposed it in his first State of the State address in 2015, promising to act "once we solve our current budget crisis."
In addition today, Governor Hogan enacted HB1469, legislation to establish the Maggie McIntosh Art Schools Fund, to help public schools in Baltimore City expand their arts curriculum.
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