Maryland considering reparations bill that would raise taxes for ‘reinvestment’ fund

ANNAPOLIS, Md. (TND) — Maryland lawmakers are considering a bill that would create a reparations system by increasing certain taxes. The Maryland Reparations Act of 2024 calls for changes to the state’s income tax rates and estate capital gains tax. In addition to increasing the marijuana sales tax from 9% to 14%, the legislation seeks to increase Maryland’s revenue by an estimated $1.2 billion in fiscal 2025, according to the bill’s fiscal note. Under the proposal, the increased taxes would be distributed to the Community Reinvestment and Repair Fund. Established in conjunction with the state’s legalization of marijuana in 2023, the fund aims to direct money to low-income individuals and to “serve disproportionately impacted areas.” “The purpose of the [f]und is to provide funds to community-based organizations that serve communities determined by the Office of Social Equity, in consultation with the Office of the Attorney General, to have the most impacted by disproportionate enforcement of cannabis prohibition before July 1, 2022,” Maryland state law reads. Sponsored by Sen. Jill Carter, D-Baltimore City, she told the Senate Budget and Taxation Committee on Valentine’s Day this bill needs to be acted on immediately. We are just in the beginning stages of our...