Courts and the Judiciary

Supreme Court: Md. has double taxed some income

Supreme Court: Md. has double taxed some income

Maryland overtaxed a portion of out-of-state income earned by its residents, and must now refund hundreds of millions of dollars, the Supreme Court ruled Monday in a decision that could have a significant impact on city and county budgets. In the 5-4 ruling, the court found that the way the state taxes income earned beyond its borders is unconstitutional, because it discourages interstate commerce. The decision upheld a 2013 ruling by the Maryland Court of Appeals. The decision could lead to refunds for an estimated 55,000 taxpayers in Maryland, and affect similar laws in New York, Pennsylvania, Indiana and Ohio. At the same time, it will cost Baltimore and the state’s counties...