EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0677*
SENATE BILL 677
Q7 4lr2996
CF HB 455
By: The President (By Request – Office of the Comptroller)
Introduced and read first time: January 29, 2024
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Comptroller – Electronic Tax and Fee Return Filing Requirements 2
FOR the purpose of requiring that returns for certain taxes and fees collected by the 3
Comptroller be filed electronically, subject to certain exceptions; altering certain 4
requirements for electronic filing of returns for certain taxes; and generally relating 5
to electronic filing of tax and fee returns. 6
BY repealing and reenacting, with amendments, 7
Article – Environment 8
Section 9–228(g)(4) and 9–1605.2(e)(1) 9
Annotated Code of Maryland 10
(2014 Replacement Volume and 2023 Supplement) 11
BY repealing and reenacting, with amendments, 12
Article – Tax – General 13
Section 4–201, 10–817, and 10–824 14
Annotated Code of Maryland 15
(2022 Replacement Volume and 2023 Supplement) 16
BY repealing 17
Article – Tax – General 18
Section 5–201(f) and 9–308(e) 19
Annotated Code of Maryland 20
(2022 Replacement Volume and 2023 Supplement) 21
BY adding to 22
Article – Tax – General 23
Section 5–201(f), 7.5–201(d), 9–207(c), 9–308(e), 10–809.1, 10–812.1, 10–819.1, 24
11–502.2, and 12–202.1 25
Annotated Code of Maryland 26
(2022 Replacement Volume and 2023 Supplement) 27 2 SENATE BILL 677
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Environment 3
9–228. 4
(g) (4) (I) Each tire dealer shall: 5
[(i)] 1. Pay the tire recycling fee; and 6
[(ii)] 2. Complete and submit, under oath, a return and remit the 7
fees to the Comptroller of the Treasury on or before the 21st day of the month that follows 8
the month in which the sale was made, and for other periods and on other dates that the 9
Comptroller specifies by regulation, including periods for which no fees were due. 10
(II) BEGINNING IN CALENDAR YEAR 2026, A PERSON SHALL 11
FILE A TIRE RECYCLIN G FEE RETURN ELECTRO NICALLY. 12
9–1605.2. 13
(e) (1) (I) A local government, the billing authority for a water or 14
wastewater facility, or any other authorized collecting agency shall complete and submit, 15
under oath, a return and remit the restoration fees collected to the Comptroller: 16
[(i)] 1. On or before the 20th day of the month that follows the 17
calendar quarter in which the restoration fee was collected; and 18
[(ii)] 2. For other periods and on other dates that the Comptroller 19
may specify by regulation, including periods in which no restoration fee has been collected. 20
(II) BEGINNING IN CALENDAR YEAR 2026, A PERSON SHALL 21
FILE A BAY RESTORATION FEE RETURN ELECTRONIC ALLY. 22
Article – Tax – General 23
4–201. 24
(A) A person shall complete, under oath, and file with the Comptroller the 25
admissions and amusement tax return: 26
(1) on or before the 10th day of the month that follows the month in which 27
the person has gross receipts subject to the admissions and amusement tax; and 28
SENATE BILL 677 3
(2) for other periods and on other dates that the Comptroller specifies by 1
regulation, including periods in which the person has no gross receipts subject to the tax. 2
(B) BEGINNING IN CALENDAR YEAR 2026, A PERSON SHALL FILE THE 3
ADMISSIONS AND AMUSE MENT TAX RETURN ELEC TRONICALLY. 4
5–201. 5
[(f) On or before January 1, 2018, the Comptroller shall develop and implement 6
procedures for the electronic filing of the alcoholic beverage tax returns required to be filed 7
under this section.] 8
(F) BEGINNING IN CALENDAR YEAR 2026, A PERSON SHALL FILE AN 9
ALCOHOLIC BEVERAGE T AX RETURN ELECTRONIC ALLY. 10
7.5–201. 11
(D) BEGINNING IN CALENDAR YE AR 2026, A PERSON SHALL FILE A DIGITAL 12
ADVERTISING GROSS RE VENUES TAX RETURN EL ECTRONICALLY . 13
9–207. 14
(C) BEGINNING IN CALENDAR YEAR 2026, A PERSON SHALL FILE A MOTOR 15
CARRIER TAX RETURN E LECTRONICALLY . 16
9–308. 17
[(e) (1) The Comptroller by regulation may require each person that is required 18
to file a return under this section to file the return through electronic means. 19
(2) A regulation adopted under this subsection: 20
(i) shall include an exemption from electronic filing for persons that 21
do not have access to means of transmitting data electronically; and 22
(ii) shall include provisions for the periodic affirmation and 23
verification of the information that is submitted electronically.] 24
(E) BEGINNING IN CALENDAR YEAR 2026, A PERSON SHALL FILE A MOTOR 25
FUEL TAX RETURN ELEC TRONICALLY. 26
10–809.1. 27
4 SENATE BILL 677
(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , FOR A 1
TAXABLE YEAR BEGINNI NG AFTER DECEMBER 31, 2029, AN INDIVIDUAL SHALL FILE 2
AN INCOME TAX RETURN ELECTRONICALLY . 3
(B) AN INDIVIDUAL IS NOT RE QUIRED TO FILE AN IN COME TAX RETURN 4
ELECTRONICALLY IF TH E INDIVIDUAL: 5
(1) IS AT LEAST 65 YEARS OLD AS OF DECEMBER 31 OF THE TAXABLE 6
YEAR FOR WHICH THE R ETURN IS BEING FILED ; 7
(2) IS SINGLE AND THE IN DIVIDUAL’S MARYLAND ADJUSTED GR OSS 8
INCOME IS LESS THAN $200,000; 9
(3) IS MARRIED FILING SE PARATELY, A HEAD OF HOUSEHOLD , OR A 10
QUALIFYING WIDOW OR WIDOWER WITH A DEPEN DENT CHILD AND THE MARYLAND 11
ADJUSTED GROSS INCOM E OF THE INDIVIDUAL IS LESS THAN $400,000; 12
(4) IS MARRIED FILING JOINTLY AND THE MARYLAND ADJUSTED 13
GROSS INCOME OF THE INDIVIDUAL AND THE I NDIVIDUAL’S SPOUSE IS LESS THA N 14
$400,000; OR 15
(5) HAS A DISABILITY AS DEFINED IN THE FEDER AL AMERICANS WITH 16
DISABILITIES ACT. 17
10–812.1. 18
(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , FOR A 19
TAXABLE YEAR BEGINNI NG AFTER DECEMBER 31, 2025, A CORPORATION SHALL 20
FILE AN INCOME TAX R ETURN ELECTRONICALLY . 21
(B) A CORPORATION WITH FEW ER THAN 15 EMPLOYEES IS NOT REQ UIRED 22
TO FILE AN INCOME TA X RETURN ELECTRONICA LLY. 23
10–817. 24
(A) A person required to withhold income tax under § 10–906 of this title shall file 25
an income tax withholding return. 26
(B) FOR A TAXABLE YEAR BE GINNING AFTER DECEMBER 31, 2025, A 27
PERSON SHALL FILE AN INCOME TAX WITHHOLDI NG RETURN ELECTRONIC ALLY. 28
10–819.1. 29
SENATE BILL 677 5
(A) IN THIS SECTION, “PASS–THROUGH ENTITY ” HAS THE MEANING STAT ED 1
IN § 10–102.1 OF THIS TITLE. 2
(B) FOR A TAXABLE YEAR BE GINNING AFTER DECEMBER 31, 2025, A 3
PASS–THROUGH ENTITY SHALL FILE AN INCOME TAX R ETURN ELECTRONICALLY . 4
10–824. 5
(a) (1) In this section the following words have the meanings indicated. 6
(2) (i) “Income tax return preparer” means a person who for 7
compensation prepares a substantial portion or more of a qualified return or employs one 8
or more persons to prepare for compensation a substantial portion or more of a qualified 9
return. 10
(ii) “Income tax return preparer” does not include a person who 11
merely performs those acts described under § 7701(a)(36)(B) of the Internal Revenue Code. 12
(3) “Qualified return” means any original return of individual income tax 13
imposed by this title, regardless of whether a tax is due or a refund is claimed. 14
(b) [Except] SUBJECT TO § 10–809.1 OF THIS SUBTITLE AND EXCEPT as 15
otherwise provided in this section, an income tax return preparer shall file all qualified 16
returns that the income tax return preparer prepares by electronic means as prescribed by 17
the Comptroller if[: 18
(1) for a taxable year beginning after December 31, 2008, but before 19
January 1, 2010, the income tax return preparer has prepared more than 300 qualified 20
returns in the prior taxable year; 21
(2) for a taxable year beginning after December 31, 2009, but before 22
January 1, 2011, the income tax return preparer has prepared more than 200 qualified 23
returns in the prior taxable year; and 24
(3) for any taxable year beginning after December 31, 2010,] the income 25
tax return preparer has prepared more than 100 qualified tax returns in the prior taxable 26
year. 27
(c) [Subsection] SUBJECT TO § 10–809.1 OF THIS SUBTITLE, SUBSECTION (b) 28
of this section does not apply to a qualified return if: 29
(1) the taxpayer has indicated on the qualified return that the taxpayer 30
does not want the return filed by electronic means; or 31
(2) the income tax return preparer preparing the qualified return has 32
requested and received a waiver from the Comptroller. 33 6 SENATE BILL 677
(d) [On] SUBJECT TO § 10–809.1 OF THIS SUBTITLE , ON written request for a 1
waiver by an income tax return preparer who is subject to subsection (b) of this section, the 2
Comptroller may grant the income tax return preparer a waiver of the requirements of this 3
section if the income tax return preparer is able to establish to the satisfaction of the 4
Comptroller either reasonable cause for not filing the return by electronic means or that 5
there is no feasible means of filing the return by electronic means without undue hardship. 6
11–502.2. 7
BEGINNING IN CALENDAR YEAR 2026, A PERSON SHALL FILE A SALES AND USE 8
TAX RETURN ELECTRONI CALLY. 9
12–202.1. 10
BEGINNING IN CALENDAR YEAR 2026, A PERSON SHALL FILE A TOBACCO TAX 11
RETURN ELECTRONICALL Y. 12
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 13
1, 2024. 14