Maryland leaders agree to cut income taxes for retirees (North Beach: property taxes, bill)

[G1..]

Originally Posted by NJ2MDdude

Thank you, Larry!

Your persistence has paid off.

But, damn, I want to retire at 60.

https://www.wmar2news.com/rebound/co...s-for-retirees

Why only last to 2027?

[North Beach Person]

Originally Posted by G1..

Why only last to 2027?

Why not? My gut tells me that it was only done this year because it's an election year (which is when legislators in Maryland at all levels from municipal to County to State traditionally try to lower taxes anyway). Budgets are built for three years to allow that lowering to take place.

[G1..]

Originally Posted by North Beach Person

Why not? My gut tells me that it was only done this year because it's an election year (which is when legislators in Maryland at all levels from municipal to County to State traditionally try to lower taxes anyway). Budgets are built for three years to allow that lowering to take place.

Why not , maybe because the people who retired will be older and in more need of the savings.

[North Beach Person]

Originally Posted by G1..

Why not , maybe because the people who retired will be older and in more need of the savings.

They're not going to make any tax cut to individuals permanent, you know, "the situation may change". Also remember that the same bureaucrats who described retirees as "useless eaters" during the O'Malley Administration are still in their jobs writing regulations and designing enforcement mechanisms.

[G1..]

Originally Posted by North Beach Person

They're not going to make any tax cut to individuals permanent, you know, "the situation may change". Also remember that the same bureaucrats who described retirees as "useless eaters" during the O'Malley Administration are still in their jobs writing regulations and designing enforcement mechanisms.

Seems other States do.

https://www.kiplinger.com/retirement...s-for-retirees

[North Beach Person]

Originally Posted by G1..

Seems other States do.

https://www.kiplinger.com/retirement...s-for-retirees

Other states, not Maryland for the most part. Maryland actually needs the constant influx of younger workers getting regular raises to support the tax system in the state.

You're in Charles County which has the highest property tax rate (of the Counties) in the State. With all the development over there have your property taxes ever really gone down?

[NJ2MDdude]

The tax cut will be phased in over a 5-year period in 2022. I'm not sure about the mechanics. I haven't found a detailed explanation anywhere. It's supposed to be permanent. The law provides the tax cut will take effect July 1, 2022 and will be applicable to all taxable years beginning after December 31, 2021. There's no mention of an expiration date. However, if the State doesn't meet its revenue goals in 2027, I understand the State could modify or even eliminate the tax cut as NBP alluded to above.

Btw, Maryland retirees are still on the hook for the piggyback tax.

[G1..]

Originally Posted by NJ2MDdude

The tax cut will be phased in over a 5-year period in 2022. I'm not sure about the mechanics. I haven't found a detailed explanation anywhere. It's supposed to be permanent. The law provides the tax cut will take effect July 1, 2022 and will be applicable to all taxable years beginning after December 31, 2021. There's no mention of an expiration date. However, if the State doesn't meet its revenue goals in 2027, I understand the State could modify or even eliminate the tax cut as NBP alluded to above.

Btw, Maryland retirees are still on the hook for the piggyback tax.

Thank you.

[G1..]

Originally Posted by North Beach Person

Other states, not Maryland for the most part. Maryland actually needs the constant influx of younger workers getting regular raises to support the tax system in the state.

You're in Charles County which has the highest property tax rate (of the Counties) in the State. With all the development over there have your property taxes ever really gone down?

I want to say two years ago.

[North Beach Person]

Originally Posted by G1..

I want to say two years ago.

The taxes went down or the rate? The way the property tax system is set up you'll always pay more.

Here's how it works. The Constant Yield Rate means that your County (or municipality) can't collect more money next year than this unless the rate is raised to what it was.

It's an elegant system, the constituent complains that his tax bill is higher and the legislator raised his taxes. The Legislator can say no, the rate remained the same as last year and you're paying higher taxes because your house is worth more. That's why all the development in the world won't lower your property taxes.

That's why the locals want the income tax from residents, that's the extra spiff. Over here, and elsewhere, it's slots money (well here they're not slots but video lottery terminals).