WES MOORE, Governor Ch. 730
– 1 –
Chapter 730
(Senate Bill 677)
AN ACT concerning
Comptroller – Electronic Tax and Fee Return Filing Requirements
FOR the purpose of requiring that returns for certain taxes and fees collected by the
Comptroller be filed electronically, subject to certain exceptions; altering certain
requirements for electronic filing of returns for certain taxes; prohibiting a certain
tax return preparer or software company from charging a separate fee for the
electronic filing of certain tax documents; prohibiting a software company from
selling different versions of the same tax software under certain circumstances; and
generally relating to electronic filing of tax and fee returns.
BY repealing and reenacting, with amendments,
Article – Environment
Section 9–228(g)(4) and 9–1605.2(e)(1)
Annotated Code of Maryland
(2014 Replacement Volume and 2023 Supplement)
BY adding to
Article – Tax – General
Section 1–208, 2–118, 5–201(f), 7.5–201(d), 9–308(e), 10–809.1, 10–812.1, 10–819.1,
11–502.2, and 12–202.1
Annotated Code of Maryland
(2022 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Tax – General
Section 4–201, 10–817, and 10–824
Annotated Code of Maryland
(2022 Replacement Volume and 2023 Supplement)
BY repealing
Article – Tax – General
Section 5–201(f) and 9–308(e)
Annotated Code of Maryland
(2022 Replacement Volume and 2023 Supplement)
BY adding to
Article – Tax – General
Section 5–201(f), 7.5–201(d), 9–207(c), 9–308(e), 10–809.1, 10–812.1, 10–819.1,
11–502.2, and 12–202.1
Annotated Code of Maryland
(2022 Replacement Volume and 2023 Supplement) Ch. 730 2024 LAWS OF MARYLAND
– 2 –
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Environment
9–228.
(g) (4) (I) Each tire dealer shall:
[(i)] 1. Pay the tire recycling fee; and
[(ii)] 2. Complete and submit, under oath, a return and remit the
fees to the Comptroller of the Treasury on or before the 21st day of the month that follows
the month in which the sale was made, and for other periods and on other dates that the
Comptroller specifies by regulation, including periods for which no fees were due.
(II) BEGINNING IN CALENDAR YEAR 2026 FOR PERIODS
BEGINNING AFTER DECEMBER 31, 2026, A PERSON SHALL FILE A TIRE RECYCLING
FEE RETURN ELECTRONI CALLY.
9–1605.2.
(e) (1) (I) A local government, the billing authority for a water or
wastewater facility, or any other authorized collecting agency shall complete and submit,
under oath, a return and remit the restoration fees collected to the Comptroller:
[(i)] 1. On or before the 20th day of the month that follows the
calendar quarter in which the restoration fee was collected; and
[(ii)] 2. For other periods and on other dates that the Comptroller
may specify by regulation, including periods in which no restoration fee has been collected.
(II) BEGINNING IN CALENDAR YEAR 2026 FOR PERIODS
BEGINNING AFTER DECEMBER 31, 2026, A PERSON SHALL FILE A BAY
RESTORATION FEE RETURN ELECTRONIC ALLY.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Tax – General
1–208.
WES MOORE, Governor Ch. 730
– 3 –
(A) (1) IN THIS SECTION THE FOLLOWIN G WORDS HAVE THE MEA NINGS
INDICATED.
(2) “AUTHORIZED TAX DOCUME NT” MEANS A TAX DOCUMENT THAT
THE COMPTROLLER HAS AUTHO RIZED OR REQUIRES TO BE FILED
ELECTRONICALLY .
(3) “SOFTWARE COMPANY ” MEANS A DEVELOPER OF TAX SOFTWARE .
(4) “TAX” MEANS A TAX OR ANY O THER MATTER ADMINIST ERED BY
THE COMPTROLLER IN ACCORD ANCE WITH THIS ARTIC LE OR ANY OTHER
PROVISION OF LAW .
(5) “TAX DOCUMENT ” MEANS A RETURN , A REPORT, OR ANY OTHER
DOCUMENT RELATING TO A TAX.
(6) (I) “TAX RETURN PREPARER ” MEANS A PERSON WHO
PREPARES FOR COMPENS ATION, OR WHO EMPLOYS OR EN GAGES ONE OR MORE
PERSONS TO PREPARE F OR COMPENSATION , AN AUTHORIZED TAX DO CUMENT.
(II) “TAX RETURN PREPARER ” INCLUDES A PAYROLL S ERVICE.
(7) (I) “TAX SOFTWARE ” MEANS A COMPUTER SOF TWARE
PROGRAM INTENDED FOR TAX RETURN PREPARATI ON PURPOSES .
(II) “TAX SOFTWARE ” INCLUDES AN OFF –THE–SHELF
SOFTWARE PROGRAM LOA DED ONTO A TAX RETUR N PREPARER ’S OR TAXPAYER ’S
COMPUTER OR AN ONLIN E TAX PREPARATION AP PLICATION.
(B) (1) A TAX RETURN PREPAR ER OR A SOFTWARE COM PANY MAY NOT
CHARGE A SEPARATE FE E FOR THE ELECTRONIC FILING OF AUTHORIZED TAX
DOCUMENTS .
(2) A SOFTWARE COMPANY MAY NOT SELL A VERSION O F THE
COMPANY’S TAX SOFTWARE THAT CHARGES A SEPARATE F EE FOR THE ELECTRONI C
FILING OF AUTHORIZED TAX DOCUMENTS AND A VERSION OF THE SAME TAX
SOFTWARE THAT DOES N OT CHARGE THE SEPARA TE FEE.
(C) (1) THE COMPTROLLER SHALL IMP OSE AGAINST A TAX RE TURN
PREPARER OR SOFTWARE COMPANY THAT VIOLATE S THIS SECTION A CIVIL PENALTY
OF:
(I) $500 FOR A FIRST VIOLATION; OR
Ch. 730 2024 LAWS OF MARYLAND
– 4 –
(II) $1,000 FOR A SECOND OR SUBS EQUENT VIOLATION .
(2) FOR THE PURPOSES OF T HIS SUBSECTION , EACH TRANSACTION IN
WHICH A CUSTOMER IS CHARGED A PROHIBITED FEE OR EACH SALE TO A CUSTOMER
OF TAX SOFTWARE THAT CHARGES A PROHIBITED FEE IS AN INDEPENDENT
VIOLATION.
(3) BEFORE A CIVIL PENALT Y IS IMPOSED UNDER T HIS SUBSECTION ,
THE COMPTROLLER SHALL PRO VIDE TO THE PERSON A GAINST WHOM THE CIVI L
PENALTY WILL BE IMPO SED NOTICE OF THE AL LEGED VIOLATION AND AN
OPPORTUNITY FOR A HE ARING.
(4) A PERSON AGAINST WHOM A C IVIL PENALTY IS IMPO SED UNDER
THIS SUBSECTION MAY SEEK REVIEW OF THE P ENALTY UNDER TITLE 10, SUBTITLE
2 OF THE STATE GOVERNMENT ARTICLE.
(5) EACH CIVIL PENALTY SH ALL BE PAID INTO THE GENERAL FUND
OF THE STATE.
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Tax – General
2–118.
NOTWITHSTANDING ANY O THER PROVISION OF LA W, A PERSON IS NOT
REQUIRED TO FILE A R ETURN, SCHEDULE, OR REPORT WITH THE COMPTROLLER
ELECTRONICALLY IF :
(1) THE PERSON HAS A DIS ABILITY, AS DEFINED IN THE AMERICANS
WITH DISABILITIES ACT;
(2) THE PERSON HAS RELIG IOUS BELIEFS THAT PR OHIBIT THE
PERSON’S USE OF ELECTRONIC FILING TECHNOLOGY ; OR
(3) THE PERSON IS DETERM INED BY THE COMPTROLLER TO HAVE A
SPECIAL NEED TO FILE A PAP ER RETURN, SCHEDULE, OR REPORT.
4–201.
(A) A person shall complete, under oath, and file with the Comptroller the
admissions and amusement tax return:
WES MOORE, Governor Ch. 730
– 5 –
(1) on or before the 10th day of the month that follows the month in which
the person has gross receipts subject to the admissions and amusement tax; and
(2) for other periods and on other dates that the Comptroller specifies by
regulation, including periods in which the person has no gross receipts subject to the tax.
(B) BEGINNING IN CALENDAR YE AR 2026 FOR PERIODS BEGINNING AFTER
DECEMBER 31, 2026, A PERSON SHALL FILE THE ADMISSIONS AND A MUSEMENT TAX
RETURN ELECTRONICALL Y.
5–201.
[(f) On or before January 1, 2018, the Comptroller shall develop and implement
procedures for the electronic filing of the alcoholic beverage tax returns required to be filed
under this section.]
(F) BEGINNING IN CALENDAR YEAR 2026 FOR PERIODS BEGINNING AFTER
DECEMBER 31, 2026, A PERSON SHALL FILE AN ALCOHOLIC BEVERAG E TAX RETURN
ELECTRONICALLY .
7.5–201.
(D) BEGINNING IN CALENDAR YEAR 2026 FOR PERIODS BEGINNING AFTER
DECEMBER 31, 2026, A PERSON SHALL FILE A DIGITAL ADVERTISIN G GROSS
REVENUES TAX RETURN ELECTRONICALLY .
9–207.
(C) BEGINNING IN CALENDAR YEAR 2026, A PERSON SHALL FILE A MOTOR
CARRIER TAX RETURN E LECTRONICALLY .
9–308.
[(e) (1) The Comptroller by regulation may require each person that is required
to file a return under this section to file the return through electronic means.
(2) A regulation adopted under this subsection:
(i) shall include an exemption from electronic filing for persons that
do not have access to means of transmitting data electronically; and
(ii) shall include provisions for the periodic affirmation and
verification of the information that is submitted electronically.]
Ch. 730 2024 LAWS OF MARYLAND
– 6 –
(E) BEGINNING IN CALENDAR YEAR 2026 FOR PERIODS BEGINNING AFTER
DECEMBER 31, 2026, A PERSON SHALL FILE A MOTOR FUEL TAX RET URN
ELECTRONICALLY .
10–809.1.
(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , FOR A
TAXABLE YEAR BEGINNING AFTER DECEMBER 31, 2029, AN INDIVIDUAL SHALL FILE
AN INCOME TAX RETURN ELECTRONICALLY .
(B) AN INDIVIDUAL IS NOT REQUIRED TO FILE AN INCOME TAX RETURN
ELECTRONICALLY IF TH E INDIVIDUAL:
(1) IS AT LEAST 65 YEARS OLD AS OF DECEMBER 31 OF THE TAXABLE
YEAR FOR WHICH THE R ETURN IS BEING FILED ;
(2) IS SINGLE OR A DEPENDENT TAXPA YER AND THE INDIVIDUAL ’S
MARYLAND ADJUSTED GRO SS INCOME IS LESS TH AN $200,000;
(3) IS MARRIED FILING SE PARATELY, A HEAD OF HOUSEHOLD , OR A
QUALIFYING WIDOW OR WIDOWER WITH A DEPEN DENT CHILD AND THE MARYLAND
ADJUSTED GROSS INCOM E OF THE INDIVIDUAL IS LESS THAN $400,000; OR
(4) IS MARRIED FILING JO INTLY AND THE MARYLAND ADJUSTED
GROSS INCOME OF THE INDIVI DUAL AND THE INDIVID UAL’S SPOUSE IS LESS THA N
$400,000; OR
(5) HAS A DISABILITY AS DEFINED IN THE FEDER AL AMERICANS WITH
DISABILITIES ACT.
10–812.1.
(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , FOR A
TAXABLE YEAR BE GINNING AFTER DECEMBER 31, 2025 2026, A CORPORATION
SHALL FILE AN INCOME TAX RETURN ELECTRONI CALLY.
(B) A CORPORATION WITH FEW ER THAN 15 EMPLOYEES IS NOT REQ UIRED
TO FILE AN INCOME TA X RETURN ELECTRONICA LLY.
10–817.
(A) A person required to withhold income tax under § 10–906 of this title shall file
an income tax withholding return.
WES MOORE, Governor Ch. 730
– 7 –
(B) FOR A TAXABLE YEAR BE GINNING AFTER DECEMBER 31, 2025 2026, A
PERSON SHALL FILE AN INCOME TAX WITHHOLDI NG RETURN ELECTRONIC ALLY.
10–819.1.
(A) IN THIS SECTION, “PASS–THROUGH ENTITY ” HAS THE MEANING STAT ED
IN § 10–102.1 OF THIS TITLE.
(B) FOR A TAXABLE YEAR BE GINNING AFTER DECEMBER 31, 2025 2026, A
PASS–THROUGH ENTITY SHALL FILE AN INCOME TAX R ETURN ELECTRONICALLY .
10–824.
(a) (1) In this section the following words have the meanings indicated.
(2) (i) “Income tax return preparer” means a person who for
compensation prepares a substantial portion or more of a qualified return or employs one
or more persons to prepare for compensation a substantial portion or more of a qualified
return.
(ii) “Income tax return preparer” does not include a person who
merely performs those acts described under § 7701(a)(36)(B) of the Internal Revenue Code.
(3) “Qualified return” means any original return of individual income tax
imposed by this title, regardless of whether a tax is due or a refund is claimed.
(b) [Except] SUBJECT TO § 10–809.1 OF THIS SUBTITLE AND EXCEPT as
otherwise provided in this section, an income tax return preparer shall file all qualified
returns that the income tax return preparer prepares by electronic means as prescribed by
the Comptroller if[:
(1) for a taxable year beginning after December 31, 2008, but before
January 1, 2010, the income tax return preparer has prepared more than 300 qualified
returns in the prior taxable year;
(2) for a taxable year beginning after December 31, 2009, but before
January 1, 2011, the income tax return preparer has prepared more than 200 qualified
returns in the prior taxable year; and
(3) for any taxable year beginning after December 31, 2010,] the income
tax return preparer has prepared more than 100 qualified tax returns in the prior taxable
year.
(c) [Subsection] SUBJECT TO § 10–809.1 OF THIS SUBTITLE, SUBSECTION (b)
of this section does not apply to a qualified return if:
Ch. 730 2024 LAWS OF MARYLAND
– 8 –
(1) the taxpayer has indicated on the qualified return that the taxpayer
does not want the return filed by electronic means; or
(2) the income tax return preparer preparing the qualified return has
requested and received a waiver from the Comptroller.
(d) [On] SUBJECT TO § 10–809.1 OF THIS SUBTITLE , ON written request for a
waiver by an income tax return preparer who is subject to subsection (b) of this section, the
Comptroller may grant the income tax return preparer a waiver of the requirements of this
section if the income tax return preparer is able to establish to the satisfaction of the
Comptroller either reasonable cause for not filing the return by electronic means or that
there is no feasible means of filing the return by electronic means without undue hardship.
11–502.2.
BEGINNING IN CALENDAR YEAR 2026 FOR PERIODS BEGINNING AFTER
DECEMBER 31, 2026, A PERSON SHALL FILE A SALES AND USE TAX RETURN
ELECTRONICALLY .
12–202.1.
BEGINNING IN CALENDAR YEAR 2026 FOR PERIODS BEGINNING AFTER
DECEMBER 31, 2026, A PERSON SHALL FILE A TOBACCO TAX RETURN
ELECTRONICALLY .
SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take
effect January 1, 2030.
SECTION 2. 5. AND BE IT FURTHER ENACTED, That , except as provided in
Section 4 of this Act, this Act shall take effect July 1, 2024.
Approved by the Governor, May 16, 2024.