HEARING ALERT: Military Retiree Tax Relief and Hometown Heroes Act

Important Pieces of Legislation Offering Relief to Retired Military Members and First Responders
Note: Senate Budget And Taxation Committee to Hold Hearings on SB 321 and SB 322 on February 22, 2017, 1:00 PM

“But, let’s get started moving toward that goal right now by passing the Hometown Heroes Act to eliminate income taxes on the pensions of those who have put their lives on the line for us: our retired military, police, fire, and first responders.” - Governor Larry Hogan, February 1, 2017

Governor Hogan Campaigned On Providing Tax Relief For Retired Military Personnel And First Responders

In 2014, Candidate For Governor Larry Hogan Stated That He Would Fight To Eliminate Income Tax On The Pensions Of Military Retirees; Stated Veterans Deserve Better. “Republican Larry Hogan says he would push to eliminate Maryland’s income tax on military pensions, if he is elected governor. Hogan spoke Wednesday to the Maryland American Legion’s annual convention in Ocean City. He says veterans deserve much better than they have been getting from the state or federal government. Hogan says veterans have earned the tax break. He also says the tax is bad economic policy.” (“Hogan: Eliminate Income Tax On Military Pensions,” The Associated Press, 7/16/14)

In 2014, Candidate For Hogan Stated That Members Of Law Enforcement “Deserve” To Not Pay State Income Tax On Their Pensions. “Maryland Republican gubernatorial nominee Larry Hogan plans to voice his support Tuesday for eliminating the state income tax on pensions of law enforcement officers. Hogan, an Anne Arundel County businessman, will make the announcement during an appearance before the Maryland Fraternal Order of Police, according to aides… ‘You deserve these tax breaks,’ Hogan says in prepared remarks to the group. ‘You earned them. It’s not just good economic policy for the state, it’s the right thing to do.’” (John Wagner, “Hogan To Call For Tax Break For Retired Md. Law Enforcement Officers,” The Washington Post, 8/12/14)

During The 2015 Legislative Session, Governor Hogan Introduced Legislation To Eliminate Taxes On Pensions For Retired Military Personnel And First Responders

Governor Hogan Proposed Legislation To Eliminate Income Tax On The Pensions Of All Military Retirees.
Legislation Proposed By The Governor Was Altered; Governor Hogan Signed Legislation Which Increased The Tax Exemption On Military Retiree Pensions To $10,000 For Military Retirees At Least 65 Years Old.”The subtraction under subsection (a) of this section includes:... If on the last day of the taxable year, the individual is at least 65 years old, the first $10,000 of military retirement income received by an individual during the taxable year.” (“Senate Bill 592,” Maryland General Assembly, 5/12/15)
Governor Hogan: ‘We are also making sure our veterans will be taxed less. Signing this bill is not only the right thing to do for our men and women in uniform, but it will also encourage more people to live and retire in our state. It’s a small token of the respect and appreciation we have for their service and sacrifice.” (Press Release, “Governor Larry Hogan Signs Rain Tax Repeal And Military Retiree Tax Relief Legislation,” Office Of The Governor, 5/12/15)

Governor Hogan Proposed Legislation To Eliminate Income Tax On The Pensions Of Retired Law Enforcement Officers, Fire, Rescue, And Emergency Personnel.
Members Of The General Assembly Did Not Act On Governor Hogan’s Common Sense Proposal. (“Senate Bill 594,” Maryland General Assembly, 11/20/15; “House Bill 488,” Maryland General Assembly, 11/20/15)

Military Retiree Tax Relief

Governor Hogan’s Proposed Legislation Would Exempt Military Retirees From State Income Tax On Their Military Retirement Income. “The extent included in federal adjusted gross income, the amounts under this section are subtracted from the federal adjusted gross income of a resident to determine Maryland adjusted gross income… All military retirement income received by an individual during a taxable year beginning after December 31, 2019.” (“Senate Bill 321,” Maryland General Assembly, 1/20/17)

Hometown Heroes Act

Governor Hogan’s Proposed Legislation Would Exempt Retired Law Enforcement, Fire, Rescue, Or Emergency Personnel From State Tax On Their Retirement Income, Specific To Their Service As A First Responder. “The retirement income that is eligible under paragraph (1) of this subsection to be included in the subtraction under subsection (B) (1) of this section may not exceed an amount equal to:... 100% of the amount of income that is eligible under paragraph (1) of this subsection for a taxable year beginning after December 31, 2018.” (“Senate Bill 322,” Maryland General Assembly, 1/20/17)