1710                             Joint Resolutions

No. 13
(Senate Joint Resolution 12)

Senate Joint Resolution urging the Governor of the State of Delaware
and the General Assembly of that State, to amend its State income
tax law to provide an exemption to residents of Maryland employed
within Delaware, similar to the exemption now provided in the
Maryland income tax law to residents of Delaware who are em-
ployed within the State of Maryland.

Whereas, both the States of Delaware and Maryland impose in-
come taxes on both residents and nonresidents and many of the resi-
dents of these two states commute back and forth across state lines
in pursuit of employment; and

Whereas, both states having general withholding income tax pro-
visions require employers to withhold income tax for both states,
when required by the law, from the wages of employees who work in
one state and live in the other; and

Whereas, both states have reciprocal provisions under which tax
credits are allowed by the nonresident state for the income tax paid
to the state of residence, thus making refundable part if not all of the
tax withheld; and

Whereas, the State of Maryland in 1957 recognizing the imprac-
ticability of this dual withholding, the filing of nonresident returns,
and the refunding back to the employee the tax withheld, amended
its income tax law to provide exemption for wages paid to a nonresi-
dent for employment in Maryland when such nonresident resides
within a state imposing an income tax and under which imposition a
Maryland resident will receive a reciprocal tax credit; and

Whereas, by reason of this amendment residents of Delaware
employed within Maryland, no longer have Maryland income tax
withheld from their wages and are required to file no income tax
returns to Maryland, but at the same time residents of Maryland
working in Delaware have Delaware income tax withheld from their
wages and must file nonresident returns to that state to recover any
overpayment that may have been made; and

Whereas, in view of this disparity a conference was held at Dover,
Delaware, on February 9, 1959, there being present the Honorable
Sherman W. Tribbett, Speaker of the Delaware House; Alexander
Abrahams, Delaware Tax Commissioner, the Honorable Louis L.
Goldstein, State Comptroller of Maryland; the Honorable Harry R.
Hughes, State Senator from Caroline County; and Benjamin F.
Marsh, Chief of the Maryland Income Tax Division; and

Whereas, Speaker Tribbett recognizing the unfairness and in-

Explanation: Italics indicate new matter added to existing law.

[Brackets] indicate matter stricken from existing law.
CAPITALS indicate amendments to bill.
Strike out indicates matter stricken out of bill.