EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 29, 2024
CHAPTER ______
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; prohibiting a certain 5
tax return preparer or software company from charging a separate fee for the 6
electronic filing of certain tax documents; prohibiting a software company from 7
selling different versions of the same tax software under certain circumstances; and 8
generally relating to electronic filing of tax and fee returns. 9
BY repealing and reenacting, with amendments, 10
Article – Environment 11
Section 9–228(g)(4) and 9–1605.2(e)(1) 12
Annotated Code of Maryland 13
(2014 Replacement Volume and 2023 Supplement) 14
BY adding to 15
Article – Tax – General 16
Section 1–208, 2–118, 5–201(f), 7.5–201(d), 9–308(e), 10–809.1, 10–812.1, 10–819.1, 17
11–502.2, and 12–202.1 18
Annotated Code of Maryland 19
(2022 Replacement Volume and 2023 Supplement) 20
BY repealing and reenacting, with amendments, 21
Article – Tax – General 22 2 SENATE BILL 677
Section 4–201, 10–817, and 10–824 1
Annotated Code of Maryland 2
(2022 Replacement Volume and 2023 Supplement) 3
BY repealing 4
Article – Tax – General 5
Section 5–201(f) and 9–308(e) 6
Annotated Code of Maryland 7
(2022 Replacement Volume and 2023 Supplement) 8
BY adding to 9
Article – Tax – General 10
Section 5–201(f), 7.5–201(d), 9–207(c), 9–308(e), 10–809.1, 10–812.1, 10–819.1, 11
11–502.2, and 12–202.1 12
Annotated Code of Maryland 13
(2022 Replacement Volume and 2023 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Environment 17
9–228. 18
(g) (4) (I) Each tire dealer shall: 19
[(i)] 1. Pay the tire recycling fee; and 20
[(ii)] 2. Complete and submit, under oath, a return and remit the 21
fees to the Comptroller of the Treasury on or before the 21st day of the month that follows 22
the month in which the sale was made, and for other periods and on other dates that the 23
Comptroller specifies by regulation, including periods for which no fees were due. 24
(II) BEGINNING IN CALENDAR YEAR 2026 FOR PERIODS 25
BEGINNING AFTER DECEMBER 31, 2026, A PERSON SHALL FILE A TIRE RECYCLING 26
FEE RETURN ELECTRONI CALLY. 27
9–1605.2. 28
(e) (1) (I) A local government, the billing authority for a water or 29
wastewater facility, or any other authorized collecting agency shall complete and submit, 30
under oath, a return and remit the restoration fees collected to the Comptroller: 31
[(i)] 1. On or before the 20th day of the month that follows the 32
calendar quarter in which the restoration fee was collected; and 33
SENATE BILL 677 3
[(ii)] 2. For other periods and on other dates that the Comptroller 1
may specify by regulation, including periods in which no restoration fee has been collected. 2
(II) BEGINNING IN CALENDAR YEAR 2026 FOR PERIODS 3
BEGINNING AFTER DECEMBER 31, 2026, A PERSON SHALL FILE A BAY 4
RESTORATION FEE RETURN ELECTRONIC ALLY. 5
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 6
as follows: 7
Article – Tax – General 8
1–208. 9
(A) (1) IN THIS SECTION THE FOLLOWIN G WORDS HAVE THE MEA NINGS 10
INDICATED. 11
(2) “AUTHORIZED TAX DOCUME NT” MEANS A TAX DOCUMENT THAT 12
THE COMPTROLLER HAS AUTHO RIZED OR REQUIRES TO BE FILED 13
ELECTRONICALLY . 14
(3) “SOFTWARE COMPANY ” MEANS A DEVELOPER OF TAX SOFTWARE . 15
(4) “TAX” MEANS A TAX OR ANY O THER MATTER ADMINIST ERED BY 16
THE COMPTROLLER IN ACCORD ANCE WITH THIS ARTIC LE OR ANY OTHER 17
PROVISION OF LAW . 18
(5) “TAX DOCUMENT ” MEANS A RETURN , A REPORT, OR ANY OTHER 19
DOCUMENT RELATING TO A TAX. 20
(6) (I) “TAX RETURN PREPARER ” MEANS A PERSON WHO 21
PREPARES FOR COMPENS ATION, OR WHO EMPLOYS OR EN GAGES ONE OR MORE 22
PERSONS TO PREPARE F OR COMPENSATION , AN AUTHORIZED TAX DO CUMENT. 23
(II) “TAX RETURN PREPARER ” INCLUDES A PAYROLL S ERVICE. 24
(7) (I) “TAX SOFTWARE ” MEANS A COMPUTER SOF TWARE 25
PROGRAM INTENDED FOR TAX RETURN PREPARATI ON PURPOSES . 26
(II) “TAX SOFTWARE ” INCLUDES AN OFF –THE–SHELF 27
SOFTWARE PROGRAM LOA DED ONTO A TAX RETUR N PREPARER ’S OR TAXPAYER ’S 28
COMPUTER OR AN ONLIN E TAX PREPARATION AP PLICATION. 29
4 SENATE BILL 677
(B) (1) A TAX RETURN PREPAR ER OR A SOFTWARE COM PANY MAY NOT 1
CHARGE A SEPARATE FE E FOR THE ELECTRONIC FILING OF AUTHORIZED TAX 2
DOCUMENTS . 3
(2) A SOFTWARE COMPANY MAY NOT SELL A VERSION O F THE 4
COMPANY’S TAX SOFTWARE THAT CHARGES A SEPARATE F EE FOR THE ELECTRONI C 5
FILING OF AUTHORIZED TAX DOCUMENTS AND A VERSION OF THE SAME TAX 6
SOFTWARE THAT DOES N OT CHARGE THE SEPARA TE FEE. 7
(C) (1) THE COMPTROLLER SHALL IMP OSE AGAINST A TAX RE TURN 8
PREPARER OR SOFTWARE COMPANY THAT VIOLATE S THIS SECTION A CIVIL PENALTY 9
OF: 10
(I) $500 FOR A FIRST VIOLATION; OR 11
(II) $1,000 FOR A SECOND OR SUBS EQUENT VIOLATION . 12
(2) FOR THE PURPOSES OF T HIS SUBSECTION , EACH TRANSACTION IN 13
WHICH A CUSTOMER IS CHARGED A PROHIBITED FEE OR EACH SALE TO A CUSTOMER 14
OF TAX SOFTWARE THAT CHARGES A PROHIBITED FEE IS AN INDEPENDENT 15
VIOLATION. 16
(3) BEFORE A CIVIL PENALT Y IS IMPOSED UNDER T HIS SUBSECTION , 17
THE COMPTROLLER SHALL PRO VIDE TO THE PERSON A GAINST WHOM THE CIVI L 18
PENALTY WILL BE IMPO SED NOTICE OF THE AL LEGED VIOLATION AND AN 19
OPPORTUNITY FOR A HE ARING. 20
(4) A PERSON AGAINST WHOM A C IVIL PENALTY IS IMPO SED UNDER 21
THIS SUBSECTION MAY SEEK REVIEW OF THE P ENALTY UNDER TITLE 10, SUBTITLE 22
2 OF THE STATE GOVERNMENT ARTICLE. 23
(5) EACH CIVIL PENALTY SH ALL BE PAID INTO THE GENERAL FUND 24
OF THE STATE. 25
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 26
as follows: 27
Article – Tax – General 28
2–118. 29
NOTWITHSTANDING ANY O THER PROVISION OF LA W, A PERSON IS NOT 30
REQUIRED TO FILE A R ETURN, SCHEDULE, OR REPORT WITH THE COMPTROLLER 31
ELECTRONICALLY IF : 32
SENATE BILL 677 5
(1) THE PERSON HAS A DISABILITY , AS DEFINED IN THE AMERICANS 1
WITH DISABILITIES ACT; 2
(2) THE PERSON HAS RELIG IOUS BELIEFS THAT PR OHIBIT THE 3
PERSON’S USE OF ELECTRONIC FILING TECHNOLOGY ; OR 4
(3) THE PERSON IS DETERM INED BY THE COMPTROLLER TO HAVE A 5
SPECIAL NEED TO FILE A PAPER RETU RN, SCHEDULE, OR REPORT. 6
4–201. 7
(A) A person shall complete, under oath, and file with the Comptroller the 8
admissions and amusement tax return: 9
(1) on or before the 10th day of the month that follows the month in which 10
the person has gross receipts subject to the admissions and amusement tax; and 11
(2) for other periods and on other dates that the Comptroller specifies by 12
regulation, including periods in which the person has no gross receipts subject to the tax. 13
(B) BEGINNING IN CALENDAR YEAR 2026 FOR PERIODS BEGINNING AFTER 14
DECEMBER 31, 2026, A PERSON SHALL FILE THE ADMISSIONS AND A MUSEMENT TAX 15
RETURN ELECTRONICALL Y. 16
5–201. 17
[(f) On or before January 1, 2018, the Comptroller shall develop and implement 18
procedures for the electronic filing of the alcoholic beverage tax returns required to be filed 19
under this section.] 20
(F) BEGINNING IN CALENDAR YEAR 2026 FOR PERIODS BEGINNING AFTER 21
DECEMBER 31, 2026, A PERSON SHALL FILE AN ALCOHOLIC BEVERAG E TAX RETURN 22
ELECTRONICALLY . 23
7.5–201. 24
(D) BEGINNING IN CALENDAR YEAR 2026 FOR PERIODS BEGINNING AFTER 25
DECEMBER 31, 2026, A PERSON SHALL FILE A DIGITAL ADVERTISIN G GROSS 26
REVENUES TAX RETURN ELECTRONICALLY . 27
9–207. 28
(C) BEGINNING IN CALENDAR YEAR 2026, A PERSON SHALL FILE A MOTOR 29
CARRIER TAX RETURN E LECTRONICALLY . 30
6 SENATE BILL 677
9–308. 1
[(e) (1) The Comptroller by regulation may require each person that is required 2
to file a return under this section to file the return through electronic means. 3
(2) A regulation adopted under this subsection: 4
(i) shall include an exemption from electronic filing for persons that 5
do not have access to means of transmitting data electronically; and 6
(ii) shall include provisions for the periodic affirmation and 7
verification of the information that is submitted electronically.] 8
(E) BEGINNING IN CALENDAR YEAR 2026 FOR PERIODS BEGINNING AFTER 9
DECEMBER 31, 2026, A PERSON SHALL FILE A MOTOR FUEL TAX RET URN 10
ELECTRONICALLY . 11
10–809.1. 12
(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , FOR A 13
TAXABLE YEAR BEGINNING AFT ER DECEMBER 31, 2029, AN INDIVIDUAL SHALL FILE 14
AN INCOME TAX RETURN ELECTRONICALLY . 15
(B) AN INDIVIDUAL IS NOT REQUIRED TO FILE AN INCOME TAX RETURN 16
ELECTRONICALLY IF TH E INDIVIDUAL: 17
(1) IS AT LEAST 65 YEARS OLD AS OF DECEMBER 31 OF THE TAXABLE 18
YEAR FOR WHICH THE R ETURN IS BEING FILED ; 19
(2) IS SINGLE OR A DEPENDENT TAXPA YER AND THE INDIVIDUAL ’S 20
MARYLAND ADJUSTED GRO SS INCOME IS LESS TH AN $200,000; 21
(3) IS MARRIED FILING SE PARATELY, A HEAD OF HOUSEHOLD , OR A 22
QUALIFYING WIDOW OR WIDOWER WITH A DEPEN DENT CHILD AND THE MARYLAND 23
ADJUSTED GROSS INCOM E OF THE INDIVIDUAL IS LESS THAN $400,000; OR 24
(4) IS MARRIED FILING JO INTLY AND THE MARYLAND ADJUSTED 25
GROSS INCOME OF THE INDIVI DUAL AND THE INDIVID UAL’S SPOUSE IS LESS THA N 26
$400,000; OR 27
(5) HAS A DISABILITY AS DEFINED IN THE FEDER AL AMERICANS WITH 28
DISABILITIES ACT. 29
10–812.1. 30
SENATE BILL 677 7
(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , FOR A 1
TAXABLE YEAR BE GINNING AFTER DECEMBER 31, 2025 2026, A CORPORATION 2
SHALL FILE AN INCOME TAX RETURN ELECTRONI CALLY. 3
(B) A CORPORATION WITH FEW ER THAN 15 EMPLOYEES IS NOT REQ UIRED 4
TO FILE AN INCOME TA X RETURN ELECTRONICA LLY. 5
10–817. 6
(A) A person required to withhold income tax under § 10–906 of this title shall file 7
an income tax withholding return. 8
(B) FOR A TAXABLE YEAR BE GINNING AFTER DECEMBER 31, 2025 2026, A 9
PERSON SHALL FILE AN INCOME TAX WITHHOLDI NG RETURN ELECTRONIC ALLY. 10
10–819.1. 11
(A) IN THIS SECTION, “PASS–THROUGH ENTITY ” HAS THE MEANING STAT ED 12
IN § 10–102.1 OF THIS TITLE. 13
(B) FOR A TAXABLE YEAR BE GINNING AFTER DECEMBER 31, 2025 2026, A 14
PASS–THROUGH ENTITY SHALL FILE AN INCOME TAX R ETURN ELECTRONICALLY . 15
10–824. 16
(a) (1) In this section the following words have the meanings indicated. 17
(2) (i) “Income tax return preparer” means a person who for 18
compensation prepares a substantial portion or more of a qualified return or employs one 19
or more persons to prepare for compensation a substantial portion or more of a qualified 20
return. 21
(ii) “Income tax return preparer” does not include a person who 22
merely performs those acts described under § 7701(a)(36)(B) of the Internal Revenue Code. 23
(3) “Qualified return” means any original return of individual income tax 24
imposed by this title, regardless of whether a tax is due or a refund is claimed. 25
(b) [Except] SUBJECT TO § 10–809.1 OF THIS SUBTITLE AND EXCEPT as 26
otherwise provided in this section, an income tax return preparer shall file all qualified 27
returns that the income tax return preparer prepares by electronic means as prescribed by 28
the Comptroller if[: 29
(1) for a taxable year beginning after December 31, 2008, but before 30
January 1, 2010, the income tax return preparer has prepared more than 300 qualified 31
returns in the prior taxable year; 32 8 SENATE BILL 677
(2) for a taxable year beginning after December 31, 2009, but before 1
January 1, 2011, the income tax return preparer has prepared more than 200 qualified 2
returns in the prior taxable year; and 3
(3) for any taxable year beginning after December 31, 2010,] the income 4
tax return preparer has prepared more than 100 qualified tax returns in the prior taxable 5
year. 6
(c) [Subsection] SUBJECT TO § 10–809.1 OF THIS SUBTITLE, SUBSECTION (b) 7
of this section does not apply to a qualified return if: 8
(1) the taxpayer has indicated on the qualified return that the taxpayer 9
does not want the return filed by electronic means; or 10
(2) the income tax return preparer preparing the qualified return has 11
requested and received a waiver from the Comptroller. 12
(d) [On] SUBJECT TO § 10–809.1 OF THIS SUBTITLE , ON written request for a 13
waiver by an income tax return preparer who is subject to subsection (b) of this section, the 14
Comptroller may grant the income tax return preparer a waiver of the requirements of this 15
section if the income tax return preparer is able to establish to the satisfaction of the 16
Comptroller either reasonable cause for not filing the return by electronic means or that 17
there is no feasible means of filing the return by electronic means without undue hardship. 18
11–502.2. 19
BEGINNING IN CALENDAR YEAR 2026 FOR PERIODS BEGINNING AFTER 20
DECEMBER 31, 2026, A PERSON SHALL FILE A SALES AND USE TAX RETURN 21
ELECTRONICALLY . 22
12–202.1. 23
BEGINNING IN CALENDAR Y EAR 2026 FOR PERIODS BEGINNING AFTER 24
DECEMBER 31, 2026, A PERSON SHALL FILE A TOBACCO TAX RETURN 25
ELECTRONICALLY . 26
SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 27
effect January 1, 2030. 28
SECTION 2. 5. AND BE IT FURTHER ENACTED, That , except as provided in 29
Section 4 of this Act, this Act shall take effect July 1, 2024. 30