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Supreme Court rules on Maryland’s tax snafu

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in Small Business Tax

In a new case, the U.S. Supreme Court has ruled that Maryland’s tax system results in double taxation. Residents can take a credit against Maryland state tax for tax paid to other jurisdictions but not against a county tax. By a 5-4 margin, the top court said this is unconstitutional. (Comptroller of the State of Maryland v. Wynne, S. Ct. No. 13-485, 5/18/15)

New York, Ohio and Pennsylvania have similar tax regimes. Affected taxpayers can consider filing amended returns for open tax years.

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