Supreme Court Decision To Cost Maryland Millions

ANNAPOLIS, Md. (AP) -- Maryland officials estimate a Supreme Court ruling against the state's tax policy will cost the state about $200 million in refunds it will have to pay residents going back seven or eight years.

The court ruled Monday it's unconstitutional not to allow a tax credit for money residents make in other states. Maryland does not apply the tax deduction on a local "piggy back" tax collected by counties.

The decision also will cost local governments about $42 million annually.

Last month, lawmakers prepared for the ruling by directing that money be paid out of a reserve fund the state's comptroller uses to pay refunds. Lawmakers also stipulated that costs will be shifted to local governments beginning in fiscal year 2017. The payments will be spread out over two fiscal years.

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