Nonpartisan Education-based News for Talbot County Community
During a Friday visit to Easton, Maryland Comptroller Peter Franchot spoke via videoconference with The Spy.
Franchot talked about Maryland’s tax season, which began Feb. 12; the state’s COVID-19 stimulus checks, processed by his office; and how Maryland’s economy looks after nearly a year of the pandemic.
This video is about 18 minutes long.
The Spy Newspapers may periodically employ the assistance of artificial intelligence (AI) to enhance the clarity and accuracy of our content.
After the House of Delegates nixed a last-minute provision that would’ve included broader stimulus checks for Maryland taxpayers, Gov. Lawrence J. Hogan Jr. (R) plans to sign a billion-dollar relief effort into law Monday.
Hogan’s RELIEF Act, as currently amended and approved by both the House and Senate on Friday, would include sweeping tax relief for small businesses and Marylanders, and direct stimulus checks to certain low-income taxpayers. The proposal was overwhelmingly passed by the legislature Friday after a day of contentious debate over whether to include taxpayers without Social Security numbers, including undocumented immigrants, in the bill’s direct stimulus.
Hogan, who has repeatedly called on the legislature to quickly pass his relief proposal, lauded lawmakers’ fast action in a Friday statement.
“The RELIEF Act will deliver more than $1 billion in tax relief and economic stimulus for struggling families and small businesses,” Hogan wrote. “It will help Marylanders barely hanging on right now as we work to bring this global pandemic to an end. While Washington gears up for yet another partisan fight, here in Maryland we are once again setting an example of what effective and bipartisan leadership looks like.”
A spokesperson for Hogan confirmed that the governor plans to sign the emergency relief package into law on Monday.
The relief package includes direct stimulus payments – $500 for families and $300 for individuals – to low-income taxpayers who filed for the Earned Income Tax Credit (EITC) in 2019. But because the EITC requires a Social Security number, advocates have warned that thousands of Maryland taxpayers would be excluded from those stimulus payments.
House Democrats on Thursday added people who file taxes with individual taxpayer identification numbers (ITIN) who meet the EITC income guidelines to the RELIEF Act’s stimulus checks.
ITIN filers also include undocumented immigrants and “some people who are lawfully present in the U.S., such as certain survivors of domestic violence, Cuban and Haitian entrants, student visa–holders, and certain spouses and children of individuals with employment visas,” according to the National Immigration Law Center.
But the proposal to send ITIN filers stimulus checks was withdrawn Friday after Republican objections and questions over its viability threatened to hold up the bill. Instead, lawmakers plan to pass separate legislation next week to provide assistance to ITIN filers.
More than 86,000 ITIN filers paid more than $100 million in state and local taxes last year, according to Comptroller Peter V.R. Franchot (D), and many of those taxpayers meet the EITC income qualifications.
House Majority Leader Eric G. Luedkte (D-Montgomery County) said the removal of ITIN filers from the relief proposal was a compromise. He promised to quickly pass an “equivalent program” that would provide relief for those taxpayers as early as next week.
“Every Maryland taxpayer in poverty deserves help,” Luedtke said.
In a joint statement, Senate President Bill Ferguson (D-Baltimore City) and House Speaker Adrienne A. Jones (D-Baltimore County) promised to pass legislation to “include every Maryland taxpayer in the Earned Income Tax Credit” next week.
“No Marylander deserves to wonder where their next meal will come from, how to buy their child’s diapers, or how to pay for life saving medicine – especially when they go to work every single day,” the statement reads.
Ferguson and Jones wrote that, combined with the newly passed RELIEF Act, the proposal will be “the best anti-poverty legislation to have passed the General Assembly in years.”
That relief won’t include immediate stimulus payments to ITIN filers, a spokesperson for Ferguson said. It’ll extend EITC benefits to ITIN filers for the 2020, 2021 and 2022 tax years, Ferguson said at a Friday evening media briefing. He noted that Hogan currently holds “all the cards” in determining how to distribute relief funding.
In a Friday statement, CASA Research and Policy Analyst Cathryn Paul demanded the fast passage of that legislation, including a veto override if necessary.
“Today, leaders of the Maryland House and Senate issued a joint statement committing to immediately passing EITC reform expanding coverage to include ITIN filers,” Paul said. “While EITC reform is certainly needed, it is unimaginable that an anti-immigrant Governor like Larry Hogan will not veto the bill when it reaches his desk. Only a veto-proof majority and rapid veto override vote will provide the critical relief needed by immigrant tax filers.”
(Hogan’s wife, First Lady Yumi Hogan, immigrated to the U.S. from South Korea.)
After the House approved of the relief proposal Friday, the bill returned to the Senate floor just before 5 p.m. on Friday and was passed by a unanimous vote, 45-0.
“We have seen livelihoods destroyed and we have seen lives lost. And this is a clear message to Marylanders everywhere … relief is on its way. Not next year, not in the next month, but now. That is why we put partisanship aside and put public service first,” Sen. Craig Zucker (D-Montgomery) said.
Senate Minority Whip Michael J. Hough (R-Frederick) commended the chamber for working through a compromise quickly
“I think the Senate really showed leadership here and did a good thing. We’re going to get direct aid to people, relief,” Hough said. “It’s not a perfect bill, compromises are never perfect … but nonetheless I think this is a good bill overall.
In a Friday press release, leaders of the Maryland Legislative Latino Caucus said Maryland would join California and Colorado if it expands EITC benefits to ITIN taxpayers. According to that release, Attorney General Brian E. Frosh (D) said that the previous proposal to include ITIN filers in the RELIEF Act “would not be viable.”
“Now, more than ever, we must ensure there are no barriers to help those in need,” Latino Caucus Vice Chair Joseline Peña-Melnyk (D-Anne Arundel and Prince George’s) said in the release. “Immigrants have been working to keep our communities afloat during this time, so we absolutely need to step up for them.”
Franchot, in a statement after the vote, said he still believes the RELIEF Act “falls considerably short,” but was improved by legislative amendments.
“I was disappointed that tax-paying immigrants were excluded from receiving direct stimulus payments,” Franchot said. “They are our friends and neighbors who are also struggling to feed their families and pay their bills. The taxes they pay provide financial relief to others, but they are being cast aside without immediate assistance. This is economic injustice, plain and simple.”
His office will work with the General Assembly to “provide EITC benefits to all eligible Marylanders ― regardless of whether they file their taxes with a Social Security Number or an ITIN ― as soon as possible.”
By Bennett Leckrone and Danielle E. Gaines
The Spy Newspapers may periodically employ the assistance of artificial intelligence (AI) to enhance the clarity and accuracy of our content.
Gov. Lawrence J. Hogan Jr. (R) touted the state’s vaccine plan and urged state lawmakers to quickly pass his COVID-19 relief proposal in an unusual State of the State address Wednesday evening.
While normally Hogan would have delivered his annual address to a midday joint gathering of the Maryland Senate and House of Delegates, the governor live-streamed his comments. In the address, Hogan urged Marylanders to get the vaccine – but acknowledged it may be some time before everyone is vaccinated.
And as in past years, Hogan emphasized bipartisanship and cooperation in his address.
“Over this past year, as we have faced unimaginable challenges, those words were truly put to the test,” he said. “But together we rose to the challenge, and it is because of the courage, the sacrifices, and the strength of the people of Maryland that the state of our state is more resilient than it has ever been before.
Here’s what Hogan said in his seventh State of the State address:
On the state’s vaccine plan
More than 570,000 Marylanders have received a dose of the COVID-19 vaccine as of Wednesday, Hogan said, and the state is ready to vaccinate many more when the federal government allocates more doses.
“Unfortunately, right now the amount of vaccines being allocated by the federal government is just a tiny fraction of what we need,” Hogan said. “That is the hard truth not just for us in Maryland, but for every state in America.”
Hogan echoed his Acting Secretary of Health Dennis R. Schrader in saying that the state is building “infrastructure” to cope with a larger supply of the long-sought vaccine. He noted that the new single-shot Johnson & Johnson vaccine could soon receive federal approval – and that it’s being manufactured in Maryland.
Despite the limited supply, the state recently opened up eligibility to a much larger portion of Marylanders, leading some Democratic lawmakers to question the rapid expansion. In his rebuttal to Hogan’s address, House Majority Leader Eric G. Luedtke (D-Montgomery) pointed out that Maryland has lagged behind other states in its vaccine rollout.
Luedtke called the state’s vaccine plan “bungled” and criticized Hogan for “abysmal communication” on vaccines.
“The single-most important thing is communication. The public is deeply confused about how to get access to the vaccine,” Luedtke said during a conversational, interview-style response, unlike the pre-filmed rebuttal speeches of the past.
Hogan acknowledged that vaccination will take time, and urged Marylanders to be patient and continue following COVID-related precautions while they await the vaccine.
“It is going to require a great deal of patience for many months while states continue to push the federal government and the manufacturers to increase the production and to drastically increase the allocations they provide to the states,” Hogan said. “In the meantime, we must continue to take the necessary precautions, which keep our families, our friends, and our neighbors healthy and safe.”
On COVID-19 relief and the economy
Hogan again urged lawmakers to pass his billion-dollar relief plan, but made no mention of an additional $520 million amendment that senators tacked onto his proposal this week.
Hogan’s RELIEF Act of 2021 consists mostly of tax cuts and money from the state’s reserves, and includes relief checks of up to $750 for families and $500 for individuals who filed for the earned income tax credit.
“I am once again calling on the legislature to pass this bill and get it to my desk as soon as possible, so that I can sign it into law, so that it can take effect immediately,” Hogan said. “There is absolutely nothing more important for the legislature to do, and Marylanders simply cannot afford to wait.”
The amended bill received preliminary approval in the Senate on Wednesday. Final debate is currently scheduled for Friday.
But the proposal might see even more additions in the House. Luedtke said there’s bipartisan agreement that relief needs to get to Maryland families and businesses fast but said the House may take a “slightly different position” than the Senate on how to best help Marylanders.
“We believe that the bill should absolutely be focused, laser-tight, on making sure Maryland middle class families and small businesses have the support they need,” Luedtke said.
Hogan touted his proposed budget as “structurally balanced with absolutely no tax increases,” and no layoffs for state employees. He said he’s also proposing more than $1 billion in tax cuts for retired Marylanders, which he said will keep “tens of thousands of Marylanders from feeling our state.”
“Now more than ever, Marylanders need to be able to keep more of their hard-earned money in their own pockets,” Hogan said.
Luedtke said the problem isn’t high taxes, but rather low taxes on wealthy Marylanders and businesses. He slammed Hogan’s veto on the proposed digital ad tax, which legislators plan to use to fund the also-vetoed Blueprint for Maryland’s Future education reforms.
“It’s not that taxes are too high, it’s that we let too many people get away without paying their fair share,” he said. He noted that House and Senate leaders are set to unveil unemployment insurance reform tomorrow.
On Maryland’s recovery
Hogan said he’s issued more than 85 emergency health orders since the onset of the pandemic and noted that it was only a few days after his 2020 State of the State address that he met with other governors and federal officials in the District of Columbia to learn more about the spread of the coronavirus.
He lauded Maryland small businesses, essential workers and teachers for their actions over the past year and noted the Maryland National Guard’s role in distributing COVID-19 tests and, more recently, at the Capitol on Jan. 6. “When our democracy itself came under attack, they were first to arrive to protect our nation’s capital,” he said.
He also praised health care workers, and noted Daisy Solares, a Baltimore City resident and respiratory therapist at the University of Maryland Medical Center. He said Solares, who lost her father to COVID-19, was one of the first Marylanders to get the vaccine. She described it as a “step forward at healing,” Hogan said.
The pandemic “will not end overnight,” but Marylanders working together can “get life back to normal once again,” Hogan said.
“A better future is on the horizon where we can get back to doing the everyday things we all miss, like celebrating with friends and family at a crowded restaurant or taking our kids and grandkids to a baseball game,” he said. “A better future where our kids are thriving, our communities are safer, and our economy is booming once again. We will get there, but we must continue looking out for one another and continue working together to build that better future.”
In his response, Luedtke said the Democratic majority in the General Assembly will be focused on racial equity in the state’s pandemic recovery. He said he hopes Hogan works with the legislature as they attempt to pass police reform and pursue House Speaker Adrienne A. Jones’ (D-Baltimore County) racial justice agenda.
Luedtke said Maryland is “well-positioned” to lead the nation in economic recovery in the next few years but said an equitable recovery will be important as the state moves forward.
“The inequalities that exist in our society have been brought to light like never before,” Luedtke said.
The Spy Newspapers may periodically employ the assistance of artificial intelligence (AI) to enhance the clarity and accuracy of our content.
Comptroller Peter Franchot announced that nine agency branch offices reopened Monday, March 16, and will be open from 8:30 a.m. to 4:30 p.m. weekdays.
Taxpayers are still urged to call 1-800-MDTAXES for assistance or contact the comptroller’s office by email.
If necessary, residents of Talbot, Caroline, Queen Anne’s, Dorchester and the Lower Shore counties may visit the Salisbury branch office in Sea Gull Square at 1306 South Salisbury Blvd., Suite 182, Salisbury, or call 410-546-8100 for assistance.
Residents of Kent County may visit the Elkton Branch Office in the Upper Chesapeake Corporate Center at 103 Chesapeake Blvd, Suite D, Elkton, or call 410-996-0465.
Two branch offices — Upper Marlboro and Frederick — are located within county courthouses and are subject to local courthouse policies. The Upper Marlboro office will remain closed and there will be limited public access to the Frederick office. For a complete list of branch offices, visit www.marylandtaxes.gov.
Taxpayers who would typically use the Upper Marlboro branch should visit the offices in Greenbelt or Waldorf. Taxpayers who use the Frederick branch can visit the Hagerstown or Wheaton offices.
Md. Comptroller Peter Franchot
“Critical taxpayer services provided by our branch offices will be met by our staff, who will be exercising an abundance of public health caution,” said Franchot. “Our staff is committed to doing everything possible to ensure continuity of critical functions, including processing tax returns, distributing tax refunds, processing state payroll and making vendor payments.”
More than ever, taxpayers are urged to file their Maryland state income tax returns electronically, including the use of direct deposit for refunds. Taxpayers can email their questions to [email protected] or call 1-800-MD-TAXES for help weekdays from 8:30 a.m. to 7 p.m. (extended hours during tax season remain in effect.)
Last week, Comptroller Franchot announced certain business tax payments currently due in March, April and May will now be due June 1. The extension applies to businesses filing sales and use tax, withholding tax, and admissions & amusement tax, as well as alcohol, tobacco and motor fuel excise taxes, tire recycling fee and bay restoration fee returns.
The Spy Newspapers may periodically employ the assistance of artificial intelligence (AI) to enhance the clarity and accuracy of our content.
Since I spent the past two weeks reporting on all Kirwan, I wanted to catch you up on our long list of bills that MACo did discuss and take positions on. There really is legislation outside of Education spending and the Sales and Service tax hike, but you will see that many of these bills do tie back in to the big education bill!
Did you think that property tax was a flat rate? This bill, HB1276, “County Property Tax – Classifications of Real Property and Authority to Set Special Rates” may change that. This authorizes a county to set special property tax rates on any sub-class of real property. Properties such as agriculture land, marsh land, small and large commercial properties, industrial, residential condos/rentals and residential greater than 5000 square feet. While counties could theoretically charge a lower rate, a county could also charge a higher property tax rate. This could mean having “progressive” property tax rates. MACo supported the bill because it “authorizes” county control, however, it’s just another way to raise taxes to pay for Kirwan.
A bill that could tax some Marylanders even more is HB1494, “County Income Tax – Maximum Rate and Authority to Impose on an Income Bracket Basis.” This increases from 3.2% to 3.5% as a maximum a county could impose on an individual’s taxable income. It would also require that a county not charge the lower rate to certain income levels, if they have set this bracket policy by ordinance. MACo decided to take no position because we don’t know how it might affect disparity grants or the education “effort” of a county. We believe that this type of bill should wait until next year and the State has acted on an amended version of Kirwan.
Then there are bills that continue to limit or reduce County revenues, just when we need them more than ever. HB1280, “Admissions and Amusement Tax – Small Business Exemption”, would prohibit a county from imposing this tax on businesses with less than $75,000 in gross receipts. MACo mostly opposes bills that impose State mandates, revenue decreases or spending increases. HB1451, “School Bus Purchasing – Zero Emission Requirement,” would be such a bill, requiring that each school bus be a zero-emission vehicle. This is unworkable. Electric vehicles are limited as to how far they can travel and most jurisdictions have to cover many miles of roads, not to mention the cost of purchasing such buses.
Then there’s the BRFA. HB152/SB192 is the annual Budget Reconciliation and Financing Act. This is the “catch-all” to balance the budget. There are several problematic items in it this year. It proposes to shift the cost of SDAT (State Dept of Assessments and Taxation) from 50% to 60% onto the locals. It also reduces the Community College CADE formula and Counties would lose approximately $121 million in funding, which would either have to be added to the tuition or borne by the county taxpayers. And if you remember the Highway User Revenue issue, this would also pull some of what little bit of local dollars we have left to pay for a State tunnel project in Baltimore City.
Speaking of Highway User Revenues, HB1394/SB982 would repeal the “sunset” provision that counties and towns advocated for a couple years ago. Municipalities are nearly fully funded but Counties still have a long way to go. We would like to make permanent the partial restoration we regained. It also adds a gradual restoration of 1% and includes a CPI adjustment. It is very important to have some type of bill on the table each year. Funding was cut 90% ten years ago and many legislators don’t remember how much this has harmed the towns and counties. MACo definitely supports this bill!
A really bad bill, is HB1406, “Land Use Development – Middle Housing.” This would completely preempt local land use control. The bill states that a local jurisdiction SHALL adopt land use regulations and amend its comprehensive plan. Counties would be required to allow duplexes, triplex’s cottage clusters, townhomes and similar on single family lots in qualified census tracts. There are stipulations on what constitutes a qualified area, but this is definitely the proverbial “camel’s nose under the tent.” It would only be a matter of time before most jurisdictions would have this requirement. MACo strongly opposes this bill.
Another bad land use bill is HB1390/SB741, “Public Convenience and Necessity – Electric Study and Procedures.” This is another preemption bill that removes all semblance of land use planning regarding utility scale solar installations, requiring Public Service Commission approval. Solar developers should not “freeze out” local jurisdictions, as this bill would certainly do. What is reasonable along a highway in suburban Montgomery County, may be completely unreasonable in a rural setting, with historic homes and landmarks on the Eastern Shore or Western Maryland. There has already been litigation over this issue and will continue to be a fight. We strongly opposed this bill.
HB991, “Procurement – Transparency and Application to County Contracts” is another bill to eliminate local decision-making authority. County procurement would have to be altered to match the State, which would make it much more complicated. Counties are transparent. We go out to competitive bid, get a minimum number of quotes, or piggy back off State contracts. There is no reason to overturn our own procedures. MACo opposed.
A couple good bills that we did support were HB1485 and HB1496, “Maryland Medical Assistance – Emergency Service Transporters Reimbursement.” Currently, Emergency Service providers are only reimbursed $100 per transport to a hospital. This would increase to $300, transports, not only to hospitals, but also urgent care centers. It would also enable EMS to charge for the response, even if they don’t ultimately transport the patient to a medical facility. Our EMS units can sometimes bill insurance for these transports if a patient has insurance, but if there is no one to charge, it is a large expense to the counties. This could be a big help to help offset the high costs of this very critical service.
Finally, we heard from one of our favorite guests, Budget Secretary, David Brinkley. He gave us an update on the Governors budget and fiscal outlook. A record amount of $7.3 billion is being spent on Education. Environmental programs are fully funded. $1.3 billion is being retained in the reserve account and Maryland is happy to report that it maintained its AAA bond rating. General fund spending is growing at about 1%. The Governors budget is balanced with no tax or fee increases or raiding of funds. $75 million is in the pension funding, and the state has caught up and is ahead of its 80% funding goal.
Having served for three years on the Kirwan commission, Secretary Brinkley stated that the budget has competing interests and we live in a finite world. Future deficits will occur and Kirwan will only add to them and a recession will only make it worse. To quote the Secretary “If everything is a priority then nothing is a priority,” which he pushed for during his time on the commission. He believes we need to get the biggest bang for our buck and allow the locals the opportunity to prioritize their needs.
Secretary Brinkley said that the Kirwan commission was supposed to be a follow up to Thornton, from 18 years ago due to a court order. To quote, “We’re about to repeat history” and pass policy with no funding source. “We are already spending 22% more per pupil and 28% more in teacher salaries than the national average.” Passing a budget is one of only two Constitutional obligations of the State. He agreed that the proposed sales tax increase will do nothing to fund the County share of Kirwan and the Governor opposes any tax increases to pay for Kirwan. “The State must maintain its fiscal discipline and hardworking taxpayers live within their means and the State needs to do the same.”
So that’s the long wrap up of the past two weeks, all while the Kirwan discussions are going on, along with the Sales tax expansion that includes almost every service. It’s a whirlwind of activity, but don’t stop keeping track. Hold those legislators in Annapolis accountable to do what is in everyone’s best interests, and never just one group. Until next week….
Laura Price is 2nd Vice President on the Executive Board of Directors of MACo, Chair of Budget and Tax, Talbot’s legislative liaison and member of the Talbot County Council.
The Spy Newspapers may periodically employ the assistance of artificial intelligence (AI) to enhance the clarity and accuracy of our content.
