Maryland Opportunity Zones

Maryland has designated 129 Qualified Opportunity Zones by identifying certain census tracts as low-income areas with specific poverty rates. To get approved as an opportunity zone, an area must be nominated by the governor and CEO of U.S. Territories. Maryland has a few specific areas that are heavier with opportunity zones. The highest concentration of opportunity zones in Maryland are located in Baltimore County, with 42 designated in the city of Baltimore

Opportunity Zones were designed as a way of improving the quality of life in areas considered to be economically distressed. That means improving the work opportunities, property value while also lowering crime and unemployment rates. The basis for a thriving opportunity zone depends on the ability to attract private investors by offering capital gains tax incentives. It is through this approach that private investments are expected to become more appealing and boost the overall community.

Opportunity zones are awarded to areas that meet low-income and poverty-rate qualifications. Out of all the census tracts that are eligible, 129 were approved in the state of Maryland. These communities are considered ones that are most in need of economic upheaval.

Maryland personal income tax has five brackets and starts at 2 percent before topping out at 5.75 percent. These rates have made Maryland one of the better states when it comes to personal income tax. It is not among the 10 lowest, although it does not have a big jump and is considered favorable.

The property taxes in Maryland are around the middle of the pack as annual taxes on a $185k home are estimated to be $2,030. The sales tax in the state of Maryland is 6 percent across the board as local municipalities are not permitted to add on their own percentages. Maryland is one of the more tax-friendly states to the wealthy. The lower personal income tax and property tax rates make it quite accommodating for the upper class.

Maryland’s working poor class has benefited from the incentives in the Earned Income Tax Credit, which has been revered throughout the state. When it comes to the middle class and income tax, Maryland residents have much lower rates than nearby Virginia or Washington, D.C. In Maryland, estate taxes only apply to those who have an estate of $4 million.

Maryland personal income tax has five brackets and starts at 2 percent before topping out at 5.75 percent. These rates have made Maryland one of the better states when it comes to personal income tax. It is not among the 10 lowest, although it does not have a big jump and is considered favorable.

The property taxes in Maryland are around the middle of the pack as annual taxes on a $185k home are estimated to be $2,030. The sales tax in the state of Maryland is 6 percent across the board as local municipalities are not permitted to add on their own percentages. Maryland is one of the more tax-friendly states to the wealthy. The lower personal income tax and property tax rates make it quite accommodating for the upper class.

Maryland’s working poor class has benefited from the incentives in the Earned Income Tax Credit, which has been revered throughout the state. When it comes to the middle class and income tax, Maryland residents have much lower rates than nearby Virginia or Washington, D.C. In Maryland, estate taxes only apply to those who have an estate of $4 million.

The tax breaks are not enough to keep all industries in the state of Maryland. Food manufacturing companies have been leaving the state because of the high tax rates and there are also major car manufacturers who have fled Maryland. While not one industry has been overwhelmingly decimated by these departures, there are consistent departures across a number of industries.

Maryland State Financial Facts

It is important to point out that the cost of living is high throughout the state of Maryland. This has hindered the ability to save money among the majority of residents. Here is a look at some of the state’s key financial facts:

• Median household income – $77,359
• Median household savings
  • $0 in savings: 42%
  • $1,000 or less in savings: 57%
• Total household investments

68 percent of families that own their home
Median value of Maryland home – $286,700
Maryland median hourly wage rate – $21.08

Maryland income has been on the rise as the state showed a 7.2 percent wage increase in 2017, while only four states have shown a greater growth in this area. Employment has also been increasing as the unemployment rate is down to 4.3 percent. The economic climate of Maryland is fair in comparison with the rest of the country as some areas are performing much better than others.

Business startups are not as easy in Maryland compared to other states and that is due to the high cost of labor and high rents for office space. However, there is a thriving section of government agencies because of the state’s location. This has allowed Maryland to lead all states when it comes to research and develop for federal obligations.

The poverty rate across the state is eight around 10 percent, although that is impacted by downtrodden areas in Baltimore where there an abundance of opportunity zones. However, is substantial job growth as Maryland has exceeded the national average for new jobs added for the past few years.

Maryland took a hit during the latest financial crisis in 2009 and that led to an escalating number of foreclosures. Five years after that, three of the more prosperous counties experienced a 100 percent increase in their number of foreclosures. The impact of the financial crisis lingered more than it did in many other states. Things have continued to level out, although there was no immediate in-state solution that could prevent aftereffects like the foreclosure boom.

Maryland is home to an abundance of industry and while there remains a balanced variety, there are certain industries that continue to lead the state economy. Below is a glimpse of some of the most prominent industries within the state of Maryland:

• Cyber Security
• Fishing
• Manufacturing
• Aerospace and Defense
• Government Services

Opportunity Zones in Maryland

There are some thriving communities in what is one of the most historical states in the country Maryland is rich in history and also features a budding fishing and blue claw crab industry Its proximity to Washington D.C. has also created a wealth of employment opportunities in the government sector. However, Maryland has recognized 149 opportunity zones throughout the state and they are located in the following cities:

• Allegany (4)
• Anne Arundel (4)
• Baltimore County (10)
• Baltimore City (42)
• Calvert (3)
• Caroline (2)
• Carroll
• Cecil (3)
• Charles (3)
• Dorchester (2)
• Frederick (5)
• Garrett (3)
• Harford (4)
• Howard
• Kent
• Montgomery (14)
• Prince George’s (25)
• Queen Anne’s
• Somerset (3)
• Mary’s
• Talbot (2)
• Washington (5)
• Wicomico (7)
• Worcester (3)

The city of Baltimore has a bit of a divided economic makeup. Parts of the city contribute to a bustling economy, although there are other parts where unemployment rates and economic distress are high. The city has an overall unemployment rate of 13.1 percent, indicating there are some areas in need of assistance. Only the city of New Carrolton has a higher unemployment rate. It is in these areas that opportunity zones are intended to bolster the economy through the use of capital gains tax incentives. That is designed to build the community from the inside with more opportunities and resources.