Governor Hogan Announces $1 Billion Relief Act and Notes From January 11th Press Conference (paraphrased)
$1 billion relief act will provide a direct stimulus payment for low-to-moderate income residents– $750 for families, and $450 for individuals.
State and local income taxes on unemployment benefits will be repealed.
There will be a $300 million commitment to supporting small businesses with sales tax credits of up to $3,000 per month for four months, which can total up to $12,000.
The relief act will help more than 55,000 Maryland small businesses.
Per Hogan communications director Mike Ricci:
“This relief is automatic & based on a sliding scale up to $3,000. Examples: if you’re a business with $100,000 in monthly revenue and you collect $6,000 in sales taxes, you only remit $3,000. If you have $50,000 revenue and you collect $3,000 in sales taxes, you keep it all.”
Maryland businesses will be safeguarded against any tax increase triggered by the use of state loan or grant funds.
This will be introduced as emergency legislation so that relief measures can begin immediately.
Graphics below, courtesy of Mike Ricci, shows federal and additional funding:
“Maryland’s economic performance went from 49th out of 50 states to one of the best in America.”
Question: Where is this money coming from?
Answer: Much of it is coming from budget actions taken earlier in the year at the board of public works. Reserve fund is doing better than anticipated. Small portion is coming from rainy day find.
Question: How’d you come up with $450-$750 payments
Answer: We don’t have the power to send $2,000 checks as it would drain the rainy day fund completely. This gets out more money to more people and gets it out faster.
Question: Can you describe the eligibility for these payments?
Answer: Marylanders who have qualified for earned income tax credit (lowest income Marylanders).
Question: Is this just for renters or also for mortgage?
Answer: This money is specifically for renters and not mortgages.