Maryland faces returning millions in back taxes

WASHINGTON – Lots of people will see tax returns this spring, but some Maryland residents could see tax returns dating back to 2009.

The Gazette reports that Maryland is asking the state’s highest court to reconsider “double taxation” for residents who pay out-of-state taxes on their incomes.

In late January, the Maryland Court of Appeals ruled the double taxation unconstitutional. If the ruling stands, state counties will have to pay out refunds for those who qualified from 2009 through 2011. This could cost the state between $45 million and $50 million a year.

Attorney General Doug Gansler filed papers to have the court either reverse the ruling or, at the very least, not have the measure date back four years.

The Gazette reports that if the ruling stands, it will affect small businesses and Montgomery County the most. Montgomery County could be forced to refund up to $72.5 million from those three years.

WTOP’s Thomas Warren contributed to this report. Follow @WTOP on Twitter.

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