Piggyback Tax

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Worcester County residents will see an increase in the property tax of 6.5 percent and a .5 percent hike in the piggyback tax after the Commissioner approved the budget for the 2016 fiscal year.

In addition, the public schools will receive its maintenance of effort money but will operate at the same funding level as 2015 despite a cost of living increase request.

Finally there will be a budget surplus of $1.5 million.

The Commissioners were facing a $22 million budget shortfall.

The spending plan was approved a 5-to-2 vote.

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WASHINGTON (AP) - WASHINGTON (AP) - The Supreme Court is taking up a dispute over how a state may tax income its residents earn in another state.

The high court agreed Tuesday to hear an appeal from Maryland officials to overturn a lower court ruling that found the state's tax law unconstitutional.

Maryland law allows residents to deduct income taxes paid to other states from their Maryland state tax. But it does not apply that deduction when it comes to local "piggyback taxes" the state collects for county and city governments.

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BALTIMORE (AP) - Maryland Attorney General Doug Gansler is considering whether to appeal a tax decision by the state's highest court.

If the court decision stands, Gansler says it could cost local governments between $40 million and $50 million annually.

Maryland's Court of Appeals ruled in January that the state must offer credits to taxpayers whose out-of-state income is subject to local piggyback taxes, but granted a stay. The court rejected Gansler's request to reconsider last week and he has 90 days to decide whether to appeal to the U.S. Supreme Court.