Piggyback Tax

Local News
12:05 pm
Tue May 27, 2014

U.S. Supreme Court Takes Up Maryland Tax Case

U.S. Supreme Court Building
Credit creative commons

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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News
11:46 am
Thu May 23, 2013

MD Attorney General Mulls Appeal in Piggyback Tax Case

Maryland Attorney General Doug Gansler
Credit Official photo

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.

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