ANNAPOLIS, Md. — Governor Larry Hogan has come to an agreement with Senate President Bill Ferguson and Speaker Adrienne Jones on tax cuts for Maryland retirees.
Under the new agreement, retired residents 65 and older making up to $100,000 in retirement income would qualify for tax relief.
For married couples, the maximum retirement income to be eligible would be $150,000
It's unclear exactly how high the tax cut rate would be for those individuals, but in a Monday press release, the State said some retirees would owe no income tax at all.
According to that same release, 80 percent of Maryland retirees could be impacted by the agreement, which would go into effect this July and last through July 2027.
Earlier this month, the state revealed a $7.5 billion budget surplus which Hogan said should be used to enact tax cuts.
Retirees aren't the only focus of this bipartisan agreement.
The State would offer what they're calling a "Work Opportunity Tax Credit," as an incentive to employers and businesses who hire and retain workers from less fortunate communities and neighborhoods.
Then there are sales tax exemptions that would apply to items such as diapers, car seats, baby bottles, and dental hygiene and diabetic care products, as well as medical devices.
SEE ALSO: State lawmakers propose eliminating sales tax on baby, medical products
"This agreement will deliver on our promise to provide real, long-term relief for hard-working Marylanders dealing with inflation and higher prices, and help create more jobs and more opportunity to continue our strong recovery," said Hogan.
It also makes a previously reported $800 million investment in the educational "Blueprint for Maryland’s Future," which Hogan had been critical of in the past. Lawmakers say it would not affect the State's Rainy Day Fund.
Additionally, the agreement calls for expanded Medicaid dental coverage for adults, in-home medical care, and autism services.
Other issues that will be addressed include access to childcare, public school staff bonuses, college financial aid, affordable rental housing, and local transportation infrastructure.
In total, the agreement amounts to about $1.86 billion in taxpayer dollars over five-years.
