Budget & Taxes (Sales Tax)

in committee · Maryland · House of Delegates Jan 28, 2026

HB 594: Sales and Use Tax - Distribution - City of Baltimore

HB 594 changes Maryland's sales tax distribution by requiring the state to pay one-third of sales tax revenue collected from retail sales within Baltimore City directly to the city government, instead of sending it to the state general fund. Previously, this revenue flowed to the state, but the bill redirects it to Baltimore for local use. The bill also adjusts the percentage of remaining sales tax revenue sent to Maryland's education fund (starting at 9.2% in 2023 and rising to 12.1% by 2027), with the rest going to the state general fund. This directly affects Baltimore City by increasing its local revenue from in-city retail sales, effective July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects sales tax revenue to Baltimore City and increases education fund allocation, directly funding local services and public programs.95% confidence

Sub-Topics Revenue Sales Tax State Budget

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signed · Maryland · House of Delegates Apr 28, 2026

HB 358: Sales and Use Tax - Elementary or Secondary School Book Fairs - Exemption

HB 358 exempts sales tax on in-person book fairs held at Maryland elementary or secondary schools when organized by the school, a nonprofit parent-teacher organization (PTO), or another school-based nonprofit. The exemption applies only if the book fair occurs on school premises and all net proceeds are used solely for the school’s educational benefit or student programs. This change modifies Maryland’s tax code by adding a new exemption under Section 11-204(b)(9), specifically covering book fairs managed by school staff, students, or PTO members acting as agents for vendors. The bill takes effect July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts sales tax on school book fairs, directing net proceeds to educational programs, providing tax relief that funds public schools.95% confidence ✓ EducationSupports EducationExempts sales tax on school book fairs, directing net proceeds to educational programs and student benefits, effectively increasing school funding for educational activities.95% confidence

Sub-Topics Sales Tax K-12 Education Teachers

in committee · Maryland · House of Delegates Jan 28, 2026

HB 560: Sales and Use Tax and Property Tax - Exemptions for Data Centers - Repeal

HB 560 repeals two tax exemptions for data centers in Maryland: one that exempted sales and use tax on qualifying equipment purchases and another that allowed local governments to reduce property tax on data center equipment. This bill directly affects data centers previously eligible for these breaks, requiring them to pay standard sales and use tax on equipment and full property tax on their assets. The repeal removes Sections 11-239 (Tax-General) and 7-248 (Tax-Property) from Maryland law, eliminating the eligibility requirements and certification process for these exemptions. As a result, data centers will no longer qualify for these specific tax benefits under current law.

Topics ✓ Budget & TaxesSupports Budget & TaxesRepeals tax exemptions for data centers, closing a loophole to increase state revenue and strengthen fiscal management per Budget & Taxes topic.95% confidence

Sub-Topics Property Tax Sales Tax Tax Incentives

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signed · Maryland · Senate Apr 28, 2026

SB 403: Sales and Use Tax - Elementary or Secondary School Book Fairs - Exemption

SB 403 exempts sales tax on in-person book fairs held at Maryland elementary and secondary schools. It applies to sales by schools, parent-teacher organizations (PTOs), or other nonprofit groups operating these events on school premises. The exemption covers sales where students, staff, or PTO members act as agents for vendors, with all net proceeds used solely for the school's educational benefit. This bill adds a new tax exemption provision (Section 11-204(b)(9)) to Maryland’s tax code, effective July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts sales tax on school book fairs, providing tax relief for educational programs and increasing net proceeds for schools per tax code amendment.95% confidence ✓ EducationSupports EducationExempts sales tax on school book fairs, increasing net proceeds for educational programs without direct state funding.95% confidence

Sub-Topics Sales Tax Tax Incentives K-12 Education Teachers

in committee · Maryland · House of Delegates Jan 16, 2026

HB 133: Income Tax and Sales and Use Tax - Rate Reductions and Alterations

HB 133 reduces Maryland's individual and corporate income tax rates, with key changes to capital gains taxation. It exempts the first $10,000 of net capital gains from tax for residents aged 65 or older and removes income tax on capital gains from primary home sales (under $1.5 million), retirement accounts, and certain agricultural or conservation land. The bill also repeals the sales tax on data, information technology services, and software publishing. These changes directly affect Maryland residents and businesses subject to state income and sales tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces income tax rates for individuals/corporations and exempts capital gains for seniors, providing direct tax relief per bill summary.95% confidence ✓ TechnologySupports TechnologyRepeals sales tax on data, IT services, and software publishing, lowering costs for tech providers and indirectly supporting the technology sector.85% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

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in committee · Maryland · Senate Feb 3, 2026

SB 405: Sales and Use Tax - Distribution - City of Baltimore

SB 405 changes how Maryland distributes sales tax revenue by requiring the Comptroller to pay one-third of sales tax collected from retail sales within Baltimore City directly to the City of Baltimore. This bill specifically affects Baltimore City by increasing its share of local sales tax revenue, which it will receive instead of the funds previously allocated to other state or county accounts. The key mechanism is a permanent reallocation of this specific revenue stream, effective July 1, 2026, with no other changes to tax rates or collection methods. This policy adjustment ensures Baltimore City receives a dedicated portion of tax revenue generated within its boundaries.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects existing sales tax revenue to Baltimore City, increasing local funding without new taxes per bill's reallocation of one-third of city retail sales tax.95% confidence

Sub-Topics Audits & Accountability Revenue Sales Tax

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in committee · Maryland · Senate Mar 9, 2026

SB 118: Comprehensive Community Safety Funding Act

SB 118 imposes a new excise tax on gross receipts from firearm, accessory, and ammunition sales by federally licensed dealers in Maryland. The tax revenue will fund specific community safety programs: 26% to violence prevention initiatives, 26% to trauma centers, 20% to community safety partnerships, and smaller portions to survivor support and trauma physician services. The bill rewrites multiple sections of Maryland law to create this tax, establish revenue distribution rules, and define key terms like "firearm" and "ammunition." It explicitly states the funding is intended to supplement, not replace, existing state funding for these programs.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes new excise tax on firearm sales to fund community safety programs (violence prevention, trauma centers), directly advancing fiscal management through targeted revenue allocation for essential services.95% confidence ✓ Criminal JusticeSupports Criminal JusticeBill funds violence prevention (26%) and trauma centers (26%) via firearm tax, aligning with reform goals like reducing recidivism and community safety partnerships.90% confidence ✓ HealthcareSupports HealthcareAllocates 26% of tax revenue to trauma centers, directly funding healthcare infrastructure and emergency services as part of community safety programs.95% confidence

Sub-Topics Revenue Sales Tax Firearms

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in committee · Maryland · House of Delegates Feb 10, 2026

HB 197: Comprehensive Community Safety Funding Act

HB 197 creates a new excise tax on firearms, accessories, and ammunition sales by dealers in Maryland. The tax applies to all retail sales within the state, with revenue distributed to five specific community safety programs: 26% to violence prevention, 26% to trauma care, 20% to community support, 20% to survivor services, and 8% to the University of Maryland Medical System. The bill directs funds to supplement existing programs rather than replace them. This tax targets firearms dealers as the direct taxpayers, with revenue funding state-level safety initiatives.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new excise tax on firearms dealers to fund community safety programs, supplementing existing services without replacement.95% confidence ✓ Criminal JusticeSupports Criminal JusticeFunds violence prevention & trauma care programs, key criminal justice reform initiatives targeting root causes of violence.95% confidence ✓ HealthcareSupports HealthcareAllocates 26% to trauma care and 8% to University of Maryland Medical System, directly funding healthcare services without replacement.90% confidence

Sub-Topics Sales Tax Firearms

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