October 10, 2003
Sean Caine, 410-576-6357
FILES MOTION IN D.C. COMMUTER TAX CASE
General J. Joseph Curran, Jr., announced today that his Office has
filed a Motion to Dismiss
the lawsuit filed by the District of Columbia, in which the District
seeks permission to tax the incomes of non-resident commuters who
work in D.C., but live in Maryland and neighboring states. The Motion
filed today argues that the District has not stated enough facts
to justify the case proceeding.
residents of the District were joined by the D.C. Council, Mayor
Anthony Williams and all Council members in filing the suit in the
U.S. District Court for the District of Columbia on July 24.
280,000 Maryland residents commute to work in the District. If the
suit is successful, Maryland and Virginia commuters would pay income
tax to D.C. and claim a credit on their state taxes. It is estimated
that a commuter tax would redirect between $500 million and $1.4
billion from the treasuries of neighboring states to the District's.
suit directly impacts the financial health of Maryland," Attorney
General Curran said. "We cannot sit silently while the District
asks the federal Court to allow it to take hundreds of millions
of taxpayer dollars out of the Maryland treasury."
District has 60 days from today to file a response. The Commonwealth
of Virginia and the United States are also expected to file a Motion
To Dismiss the suit today.