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Military Officers Association of America
Star Spangled Banner Chapter

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state tax exemption of military retired pay

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The Governor's tax relief bill on Uniformed Services Retired Pay was drastically reduced by eliminating the out year proposals passed by another bill in the House of Delegates but did not pass in the Senate. Both Houses finally passed a $15,000 tax exemption bill for all age 55 and over beginning with tax year 2018! This applies to all seven (7) Uniformed Services and also SBP payments to surviving spouses. This is a significant victory for those age 55 up!

Thanks to those who helped advance this legislation with your emails! I know many of you reacted quickly because I helped you cut and past into the legislator's form! However, this chipping away is not near good enough! We need to get 100% exemption for all ages and it will take a lot more positive action on your part! Our young members and new members are key to our success. Legislators listen to you. They recognize an active constituent from a passive voter. Remember politics is a contact sport!

We have argued for many years that 100% exemption is a solid economic move for Maryland, its workforce, its employers, our military installations, and all taxpayers across the State. Our Maryland Comptroller agrees! So does our Maryland Military Coalition (MMC). With the recent addition of West Virginia and Arkansas in 2018, the retired pay of Uniformed Services is not taxed at all in 27 States.

With your help we will continue the fight for 100% tax emption and wake up our legislators to all the facts that military retirees are good for Maryland! Don’t be bashful, the summer is a great time to chat with your representatives!

You can check the status of proposed legislation any time by visiting the General Assembly's website.  For support of all issues, committees, emails, etc., see our "What You Can Do" page Everything you need is there!

In the Senate, tax bills are managed by the Budget and Taxation (B&T) Committee; in the House of Delegates, they are managed by the Ways and Means (W&M) Committee. It is especially important to communicate with the members of these two Committees. Members of the General Assembly's Veterans Caucus, in both the House and Senate, should also be contacted. Remember, everyone has three Delegates and one Senator. B&T and W&M Committee members in your County Delegation should definitely be contacted.

The Senators and Delegates in the Veterans Caucuses will continue to meet and drive this effort as well as other legislation for future years based on the approved priorities from last November. Our website has information on the Veterans Caucus and their priorities, especially state tax exemption and mental health---our chapter key current issues and advocacies!

House Bill 898, co-sponsored by Delegate Nick Kipke, speaker at our April 26, 2017 dinner meeting, took effect June 1, 2016 and applies to taxable year 2017. It authorizes local governments to grant a property tax credit for a dwelling of an individual who is either
(a) A retired member of the U.S. Armed Forces who is at least 65 or
(b) The widow of a retired member of the U.S. Armed Forces who was at least 65 or
(c) The widower of a retired member of the U.S. Armed Forces who was at least 65.
The amount of the property tax credit may not exceed 20% of the county or municipal property tax imposed on the property and may be granted for up to five years. The text of the final law as signed by the Governor is available here. Budget problems currently hinder progress, but contact with County and City Councils should be considered and attempted.

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