Maryland Taxed Too Much, Supreme Court Says

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Yesterday, the U.S. Supreme Court overturned a Maryland law that caused some people to effectively pay taxes twice. And now it looks like the state might owe a bunch of people some money.

The law in question essentially didn’t allow Marylanders who also earned money (and paid taxes on earnings) in other states to take credit for those out-of-state taxes paid on their local income tax filings. To put it in the unwonkiest terms possible, the court basically ruled that Maryland unfairly made some people pay taxes twice. And the state may owe those people as much as $200 million in refunds. (From what I can tell, however, only people who tried to claim this particular refund on a 2013 and/or 2014 return will be eligible to claim such a refund.) According to the Washington Post, the refund funds will come from the state’s income tax reserve fund.

This was one of those rare 5-4 cases where the court didn’t split down politico-ideological lines, interestingly enough.



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