ANNAPOLIS, Md. — Maryland is offering incarcerated and formerly incarcerated residents a chance at a clean financial slate through a new income tax relief program. For many justice-involved individuals, rebuilding a stable life is made harder by years of unpaid taxes, mounting interest and financial penalties they had little means to resolve while behind bars. The new state program aims to lift that burden.
The Fresh Start Tax Payments Program, launched by the Office of the Comptroller, allows eligible individuals to pay off unpaid state income taxes over a 10-year period — with interest and penalties waived for those who stay on track with payment plans.
“I am focused on creating pathways to economic opportunity for all Marylanders,” said Comptroller Brooke E. Lierman, who testified in support of the legislation earlier this year. “This program is an additional tool to assist individuals who are paying their debt to society but are saddled with unnecessary tax debt that penalizes them long after their sentence. It will help them rebuild their lives and enjoy a more economically stable future.”
The program was made possible through Senate Bill 295, sponsored by Sen. Cory McCray (D-45, Baltimore City), and House Bill 634, sponsored by Dels. Bernice Mireku-North (D-14, Montgomery County) and Greg Wims (D-39, Montgomery County). It builds on existing Comptroller-administered initiatives such as the Offer-in-Compromise program, which already provides flexible payment options to eligible taxpayers.
“Justice-involved individuals shouldn’t be trapped by tax debt just because they were behind bars,” McCray said. “Senate Bill 295 opens a path to reconciliation — not punishment — giving returning citizens a real shot at rebuilding their lives. I’m proud to have championed this legislation after Dr. Carmen Johnson brought the issue to my attention. With leadership from Comptroller Lierman and the CASH Campaign, we turned a bold idea into real policy. This is what it looks like to lead with both fiscal discipline and humanity.”
House sponsors echoed that sentiment, emphasizing the program’s potential to reduce barriers to reentry.
“This tax reconciliation program is a game changer for justice-involved individuals,” said Mireku-North. “Allowing for tax payment plans and waiving interest and penalties for eligible individuals removes hurdles to reentry and creates pathways for justice-involved individuals to further contribute to our Maryland economy.”
“I am confident that this legislation will remove financial burdens and help those who have served their sentence as they reintegrate into society,” Wims said.
To expand awareness and ensure eligible individuals are reached, the Comptroller’s Office plans to collaborate with several agencies, including the Maryland Department of Public Safety and Correctional Services, the Maryland Judiciary and nonprofit organizations such as the CASH Campaign of Maryland.
“By clearing tax debt for formerly incarcerated individuals, we offer them a crucial opportunity for economic advancement,” said Robin McKinney, CEO of the CASH Campaign. “This step not only alleviates the burden of overwhelming debt but also empowers people to rebuild their lives, seek stable employment and contribute to their communities. Economic mobility should be a possibility for everyone, regardless of their past, and eliminating tax debt is a key part of that process.”
Dr. Carmen Johnson, founder of Helping Ourselves to Transform, a civic engagement and justice organization, said her group helped draft the legislation.
“Too many returning citizens face insurmountable financial burdens due to outdated tax policies,” Johnson said. “This legislation is a critical step toward economic justice and long-overdue relief. It was deeply encouraging that the Maryland Comptroller immediately recognized its significance. We hope this bold, innovative move by Maryland inspires the rest of the country to follow suit.”
The Comptroller’s Office is expected to issue eligibility guidelines and open applications in the coming months. More information will be made available at marylandtaxes.gov.
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when are inmates going to get the right to vote (while they’re in jail)?
Buy a vote, one criminal at a time.
Its the MD way…
Criminals keep getting it free way to go MD.