HB 983 modifies Maryland's tax credit programs and exemptions. It terminates the Enterprise Zone Program and the One Maryland Economic Development Tax Credit Program on specific dates, ending eligibility for related tax benefits. The bill also limits annual claims for enterprise zone tax credits, restricts carryforwards for film production tax credits, and repeals sales tax exemptions for concrete, telecom equipment, and construction materials. Additionally, it alters eligibility rules for certain vehicle tax credits and ends property tax credits tied to enterprise zones.
HB 1271 establishes the Maryland Reparations Fund as a permanent fund to provide grants to people impacted by historic inequality. It creates a Reparations Board (appointed by legislative leaders and the governor) to study reparations and recommend grant programs. The bill imposes an excise tax on nonpublic institutions (like private universities) with endowments above a set threshold, requiring all tax revenue to fund the Reparations Fund. This directly affects large-endowment institutions through the tax obligation and historically marginalized communities through the grant program. The fund’s interest earnings will also remain within the fund, not flowing to the state general fund.
HB 916 establishes three new regional transportation funds for Baltimore, the Capital region, and Southern Maryland. It directs specific tax revenues - including 70% of sales tax surcharges and hotel surcharges collected in each region - to these funds, while the remaining 30% is distributed to local jurisdictions based on sales activity. The funds are designated as special, nonlapsing accounts, meaning they carry over year-to-year, and interest earned on these funds must be credited back to the same accounts. This bill creates the legal framework for regional transportation authorities to develop and implement transportation plans using these dedicated revenue streams.
SB 468 authorizes Maryland counties to create their own local child tax credits against county income tax for qualifying families. It allows counties to provide credits for each "qualified child" (defined as a dependent under age 6, or under 17 with a disability) to households with federal adjusted gross income below $15,000. The credit amount is set by the county, but must follow income phaseout rules ($50 reduction per $1,000 of income over $15,000) and requires county notification to the Comptroller. This bill does not create a state-level credit but gives counties the option to implement this local tax benefit for low-income families.
This bill exempts property owned by Hagerstown City or the Hagerstown Multi-Use Sports and Events Facility used primarily for public social, recreational, and entertainment purposes from property taxes. It applies retroactively to tax years beginning after June 30, 2023, requiring Washington County, the city, and the state to refund any overpaid taxes from that period. The exemption covers properties meeting the specified public use criteria, with refunds processed for eligible taxpayers who request retroactive relief. The bill takes effect June 1, 2026.
SB 600 modifies Maryland's sales tax definition to exclude certain business-to-business technology service sales from taxation. It specifically exempts sales of data/information technology services (NAICS 518, 519) and software publishing services (NAICS 5132) when: (1) buyers intend to incorporate them into other taxable services for resale, or (2) vendors and buyers are affiliated entities. This affects businesses selling or purchasing these technology services, removing sales tax liability for qualifying transactions. The bill clarifies existing tax rules rather than creating new taxes, effective July 1, 2026.
SB 945 imposes a 3% admissions tax on tickets for University of Maryland, College Park athletic events and a game-day surcharge on food, alcohol, and accommodations sold near the stadium on event days. The revenue from both taxes will fund a new University of Maryland Athletic Department Support Fund, a dedicated account that cannot expire and will provide ongoing financial support for the university's athletic programs. This bill amends Maryland's tax code to create these specific taxes and redirect the revenue to the fund, replacing prior tax distribution rules for similar revenue streams. The bill does not affect general public sales or taxes outside these targeted events and locations.
SB 9 establishes an annual tax-free day on November 11 (Veterans Day) in Maryland starting in 2026. It exempts sales tax on items costing less than $2,000 purchased by veterans, provided they show valid ID (like a driver's license or government ID) indicating veteran status. The Comptroller may suspend this tax-free day at their sole discretion. The law takes effect July 1, 2026, directly benefiting eligible veterans making qualifying purchases.
SB 374 exempts rental vehicles from Maryland's vehicle excise tax, directly affecting rental car companies operating in the state. The bill adds a new exemption category (Section 13-810(a)(26)) to the existing list, removing rental vehicles from the tax base that previously applied a 3.5% rate under Section 13-809(c)(1)(ii). This change eliminates the excise tax obligation for rental car companies on vehicles they lease to customers. The exemption takes effect July 1, 2026, and does not alter other tax rates or provisions.
HB 500 removes two requirements that previously limited the sales tax exemption for precious metal bullion and coins. Specifically, it eliminates the $1,000 minimum sale price and the requirement that sales must occur at the Baltimore Convention Center. The bill expands the exemption to cover all qualifying precious metal bullion (refined metal where value depends on metal content) and historically used coins, while still excluding jewelry and art. This change directly affects buyers and sellers of these items by making the exemption available for more transactions without location or price restrictions. The exemption will apply to all qualifying sales starting July 1, 2026.
