ANNAPOLIS, Md. (AP) — Maryland Gov. Wes Moore wants to expand state tax relief for military retirees.
The governor highlighted the “Keep Our Heroes Home Act” in his legislative agenda during a roundtable with veterans on Thursday. It calls for expanding the military tax exemption to $25,000 of income in tax year 2023 and $40,000 in tax year 2024.
Now, the state allows any individual 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 expands the amount and eliminates the age distinction.
The governor also is supporting free medical and dental care for members of the Maryland National Guard and their families who are eligible for Tri-Care Reserve Select.
Moore, a Democrat who is a former U.S. Army captain, proposed his $63.1 billion state budget plan last week.
Moore's budget includes about $30 million in the next fiscal year for the tax relief proposal and $5 million for the healthcare proposal.
The General Assembly will be working on the plan for much of their legislative session, which ends April 10.