Moore testifies for expanding military retiree tax relief
ANNAPOLIS, Md. (AP) — Maryland Gov. Wes Moore testified Thursday in favor of his proposal to expand state tax relief for military retirees, marking the first time a Maryland governor has testified for legislation in person before a committee in more than eight years.
Currently, the state allows anyone receiving military retirement, including surviving spouses, to deduct the first $5,000 from their taxable income if they are under 55 and $15,000 if they are 55 or older. The governor's proposal would expand the amount and eliminate the age distinction.
The measure calls for expanding the military tax exemption to $25,000 of income in tax year 2023 and $40,000 in tax year 2024.
"These are individuals who are starting small businesses," said Moore, a Democrat. "They're serving on our boards. They're bringing their talents to companies that are driving Maryland's economy forward. There also making sure that their family members are staying here as well."
Moore said Maryland needs to be competitive with neighboring states that do not tax veterans' retirement income as much as Maryland. The governor noted that Virginia recently increased its exemption for military retirees to $40,000 starting in 2025.
"As I've said before, I refuse to let this state be a farm team for other states," said Moore, who was a paratrooper with the U.S. Army's 82nd Airborne and served in Afghanistan.
About 33,300 military retirees would be eligible under the bill, according to an estimate by state analysts.
The governor included about $33 million in his $63.1 billion budget proposal for the next fiscal year for the proposal.
Moore's testimony before the House Ways and Means Committee was the first time a Maryland governor testified on a bill favored by the chief executive in more than eight years. Moore's predecessor, Republican Gov. Larry Hogan, never opted to testify on legislation before the General Assembly, which is controlled by Democrats.
Del. Vanessa Atterbeary, a Democrat who chairs the committee, thanked Moore for appearing before the panel and "showing and demonstrating that you are going to be a partner with this legislature."
"It means a lot," Atterbeary said.