Maryland – Save It, Spend It Or Give It Back? Future Online Sales Tax Windfall Stirs Debate In Maryland

The Baltimore Sun
by Michael Dresser
June 22, 2018

A U.S. Supreme Court decision that could give Maryland $100 million or more in unexpected tax revenue is likely to present state elected officials with a welcome but difficult choice next year: Spend it, save it or give it back to taxpayers.

The court’s decision, which allows states to require out-of-state online retailers to collect sales taxes, is all but certain to set up a political clash over how to use the money when the General Assembly convenes in January, experts say.

Optimistic Democrats look at the money and envision it flowing into schools and other programs. Pessimistic Democrats see it as a hedge against a downturn. And Republicans see revenue that could let them cut other taxes.

Donald F. Norris, professor emeritus of public policy at the University of Maryland, Baltimore County, said he expects a tussle over the money, especially if Republican Gov. Larry Hogan is re-elected in November.

For More Information:
The Baltimore Sun

Supreme Court Decision 6.21.18