MARYLAND WYNNE CASE UPDATE
The Maryland comptroller filed a motion for reconsideration in the Maryland Court of Appeals on February 27, 2013 asking the court to reconsider its decision, or to declare that its decision will operate only prospectively for nonparties. The comptroller argues this is an appropriate remedy because local governments have relied on the state's interpretation of the statute and already spent the revenue collected through application of the credit. And, the court acknowledged that its ruling was not the outcome intended by the General Assembly, which clearly intended the credit to apply only to the state portion.
The comptroller estimates that local governments will suffer a negative fiscal impact of $40 million per year should the court order refunds for all eligible taxpayers. Finally, the comptroller asserts that, at a minimum, the court should stay the effect of its judgment to permit an opportunity for legislative action and because the state will likely seek a U.S. Supreme Court review of the decision.
It is possible that we won’t know if the case is accepted until the U.S. Supreme Court convenes in October.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at firstname.lastname@example.org.
Because state and local taxes are deceptively simple and endlessly complicated.