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MD HB767

MD HB767
Income Tax - Subtraction Modification - Military Retirement Income (Military Pension Tax Freedom Act)


summary

Introduced
02/08/2023
In Committee
02/08/2023
Crossed Over
Passed
Dead
04/10/2023

Introduced Session

2023 Regular Session

Bill Summary

AN ACT concerning Income Tax - Subtraction Modification - Military Retirement Income (Military Pension Tax Freedom Act) FOR the purpose of phasing in, over a certain period of years, an increase in a subtraction modification under the Maryland income tax to allow for a subtraction of all military retirement income; and generally relating to a subtraction modification under the Maryland income tax for military retirement income. BY repealing and reenacting, without amendments, Article - Tax - General Section 10-207(a) Annotated Code of Maryland (2022 Replacement Volume) BY repealing and reenacting, with amendments, Article - Tax - General Section 10-207(q) Annotated Code of Maryland (2022 Replacement Volume)

AI Summary

This bill, known as the Military Pension Tax Freedom Act, proposes to phase in an increase in the subtraction modification under the Maryland income tax to allow for the subtraction of all military retirement income. Specifically, the bill would gradually increase the amount of military retirement income that can be subtracted from the state's income tax, starting with the greater of $15,000 or 20% of the retirement income in 2023-2024, and reaching full exemption of all military retirement income by 2027 and beyond. The bill defines "military retirement income" as income, including death benefits, received as a result of military service, which includes active duty, reserve components, and the Maryland National Guard, among others.

Committee Categories

Budget and Finance

Sponsors (34)

Last Action

House Ways and Means Hearing (13:00:00 2/23/2023 ) (on 02/23/2023)

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