Baltimore City - Sales Tax - Authorization

HB 1508 authorizes Baltimore City to impose a local sales tax of up to 2% on retail sales and taxable services within the city, subject to specific rules. The bill modifies Maryland tax law to explicitly grant Baltimore City Council the authority to set this tax rate and requires the city to notify the state Comptroller at least six months before any rate changes. It also establishes that Baltimore would receive a share of state sales tax revenue distributed under new Section 2-1302.5 of the tax code. This directly affects Baltimore residents and businesses by enabling the city to generate local revenue through this sales tax, while ensuring the tax rate remains capped at 2% and aligns with state tax administration procedures.