The U.S. Supreme Court held unconstitutional Maryland’s tax system that taxed residents on all income without a credit for out-of-state taxes paid while also taxing nonresidents on income earned in Maryland.
Since Maryland is one of only a few states with this system, the ruling doesn’t change the landscape so much as prevent other states from instituting a similar system, said Clark Calhoun, partner in Alston & Bird’s State and Local Tax Group.
“The key thing it does is, it prevents states from double-dipping,” he said. “It shouldn’t have major implications for anything that’s currently happening, but it will keep the states from getting more aggressive.”
Since Maryland is one of only a few states with this system, the ruling doesn’t change the landscape so much as prevent other states from instituting a similar system, said Clark Calhoun, partner in Alston & Bird’s State and Local Tax Group.
“The key thing it does is, it prevents states from double-dipping,” he said. “It shouldn’t have major implications for anything that’s currently happening, but it will keep the states from getting more aggressive.”