Maryland SB 830: Income Tax - Standard Deduction - Inflation Adjustment

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0830*

SENATE BILL 830
Q3 8lr2007
SB 237/17 – B&T
By: Senators Eckardt, Bates, Edwards, Guzzone, Hershey, Hough, Jennings,
Madaleno, and Serafini
Introduced and read first time: February 5, 2018
Assigned to: Budget and Taxation
Committee Report: Favorable
Senate action: Adopted
Read second time: March 26, 2018

CHAPTER ______

AN ACT concerning 1

Income Tax – Standard Deduction – Inflation Adjustment 2

FOR the purpose of altering the minimum and maximum limitation amounts of certain 3
standard deductions allowed under the State income tax for certain taxable years by 4
a certain cost–of–living adjustment; and generally relating to a cost–of–living 5
adjustment for certain standard deductions allowed under the State income tax. 6

BY adding to 7
Article – Tax – General 8
Section 10–217(d) 9
Annotated Code of Maryland 10
(2016 Replacement Volume and 2017 Supplement) 11

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13

Article – Tax – General 14

10–217. 15

(D) (1) FOR EACH TAXABLE YEAR BEGINNING AFTER DECEMBER 31, 16
2018, EACH MINIMUM AND MAXIMUM STANDARD DEDUCTION LIMITATION AMOUNT 17
SPECIFIED IN SUBSECTION (C) OF THIS SECTION SHALL BE INCREASED BY AN 18
AMOUNT EQUAL TO THE PRODUCT OF MULTIPLYING THE MINIMUM AND MAXIMUM 19

2 SENATE BILL 830

STANDARD DEDUCTION LIMITATION AMOUNT BY THE COST–OF–LIVING 1
ADJUSTMENT SPECIFIED IN THIS SUBSECTION. 2

(2) FOR PURPOSES OF THIS SUBSECTION, THE COST–OF–LIVING 3
ADJUSTMENT IS THE COST–OF–LIVING ADJUSTMENT WITHIN THE MEANING OF § 4
1(F)(3) OF THE INTERNAL REVENUE CODE FOR THE CALENDAR YEAR IN WHICH A 5
TAXABLE YEAR BEGINS, AS DETERMINED BY THE COMPTROLLER BY SUBSTITUTING 6
“CALENDAR YEAR 2017” FOR “CALENDAR YEAR 2016” IN § 1(F)(3)(A) OF THE 7
INTERNAL REVENUE CODE. 8

(3) IF ANY INCREASE DETERMINED UNDER PARAGRAPH (1) OF THIS 9
SUBSECTION IS NOT A MULTIPLE OF $50, THE INCREASE SHALL BE ROUNDED DOWN 10
TO THE NEXT LOWEST MULTIPLE OF $50. 11

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 12
1, 2018. 13

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.