Duncan Joins State Official As First Local Earned Income Tax Credit Checks Mailed

Header--Montgomery County, Maryland. Press Releases

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CONTACT: Mary Anderson, 240-777-6530

FOR IMMEDIATE RELEASE: January 27, 2000

DUNCAN JOINS STATE OFFICIAL
AS FIRST LOCAL EARNED INCOME TAX
CREDIT CHECKS MAILED

Montgomery County Executive Douglas M. Duncan and Maryland Deputy Comptroller Stephen Cordi today announced that starting tomorrow the first local Earned Income Tax Credit (EITC) refund checks will be mailed to 12,322 eligible Montgomery County residents. The County's refundable Earned Income Tax Credit--the nation's first local EITC refund--is a major component of the Executive's comprehensive "Rewarding Work" proposal, a broad-based set of initiatives aimed at improving the lives of the working poor in Montgomery County.

"The Earned Income Tax Credit puts dollars directly into the pockets of people who need help the most," said Duncan, "and I'm proud that Montgomery County is the first local government in the nation to offer the refundable credit." "I am not surprised that Montgomery is the first county in the nation to offer local income tax refunds to the working poor," said Comptroller William Donald Schaefer. "This is a forward looking county and a forward looking county government. I'm not surprised when it leads the nation."

In addition to the federal earned income tax credit (EITC), the State of Maryland provides a credit that is based on 10 percent of the federal EITC for tax year 1999 minus the gross state tax. The rate will increase to 12.5 percent in tax year 2000 and to 15 percent in tax year 2001. The County's program provides eligible taxpayers with a local refund that matches the amount they receive through the Maryland Earned Income Credit.

Duncan also commended the Comptroller's office for working with the County to help administer the program. Under a memorandum of understanding signed by the County and the Comptroller's Office, the State will administer the program and mail checks to eligible residents. The County will reimburse the State for the full cost of these payments.

The checks, for tax year 1998, average $175. Once the State refundable portion is fully phased in, refund checks will average $330. The program will cost the County $2.2 million this year.

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