State tax regulators were to decide Thursday whether former Vice President Spiro Agnew should be given a tax break on $142,500 he returned to Maryland for bribes he collected as governor.

Agnew and his wife, Elinor, who live in Rancho Mirage, are asking the state Board of Equalization to refund $24,197 in California income taxes.Agnew contends California auditors unjustly taxed him on the money he repaid in 1982 as restitution for accepting bribes from road construction companies while governor of Maryland from 1967-69.

State auditors, however, say the former vice president should be taxed on the reimbursement or else California taxpayers will be subsidizing repayment of the bribes.