EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1056*
HOUSE BILL 1056
L2 5lr2980
By: Delegate Conaway
Introduced and read first time: February 5, 2025
Assigned to: Environment and Transportation and Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Local Government – Excise Tax on Plastic and Paper Carryout Bags 2
FOR the purpose of requiring a county to impose an excise tax on the amount of a fee 3
charged by a retailer to a customer for a plastic or paper carryout bag that exceeds 4
the amount required by local law; providing for the allocation of the excise tax 5
revenue between the county and the State; and generally relating to an excise tax on 6
certain fees for plastic and paper carryout bags. 7
BY adding to 8
Article – Local Government 9
Section 20–610 10
Annotated Code of Maryland 11
(2013 Volume and 2024 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Local Government 15
20–610. 16
(A) IN THIS SECTION , “RETAILER” MEANS A PERSON ENGAG ED IN THE 17
RETAIL SALE OF GOODS . 18
(B) SUBJECT TO SUBSECTION (C) OF THIS SECTION, IF A COUNTY ENACTS A 19
LOCAL LAW THAT REQUI RES A RETAILER TO CH ARGE AT THE POINT OF SALE A FEE 20
FOR PROVIDING A PLASTIC OR PAPER CARRYOUT BA G TO A CUSTOMER , THE COUNTY 21
SHALL IMPOSE AN EXCISE TAX ON ANY AMOUNT OF THE FEE THAT THE RETAILER 22
CHARGES THAT IS IN EXCESS OF THE MIN IMUM AMOUNT REQUIRED BY THE LOCAL 23
LAW. 24 2 HOUSE BILL 1056
(C) (1) THE AMOUNT OF THE EXCISE TAX IMPOSED BY THE COUNTY 1
SHALL BE ON EACH CENT THAT THE RETAILER CHARGES IN EXCESS OF THE 2
MINIMUM AMOUNT REQUIRED BY LOCAL LA W AS FOLLOWS: 3
(I) FOR THE COUNTY WHERE THE RETAILER I S LOCATED, 4
ONE–THIRD OF EACH CENT; AND 5
(II) FOR THE STATE, ONE–THIRD OF EACH CENT. 6
(2) THE COUNTY SHALL: 7
(I) RETAIN THE EXCISE TAX REVENUE COLLECTED UNDER 8
PARAGRAPH (1)(I) OF THIS SUBSECTION ; AND 9
(II) REMIT THE EXCISE TAX REVEN UE COLLECTED UNDER 10
PARAGRAPH (1)(II) OF THIS SUBSECTION T O THE COMPTROLLER TO BE CREDITED 11
TO THE GENERAL FUND OF THE STATE. 12
(3) THE RETAILER MAY RETAIN THE REMAI NING ONE–THIRD OF EACH 13
CENT CHARGED IN EXCE SS OF THE MINIMUM AM OUNT REQUIRED BY LOCAL LAW TO 14
COVER ADMINISTRATIVE COSTS FOR COLLECTING AND R EMITTING THE TAX UNDER 15
THIS SECTION. 16
(D) A COUNTY SHALL ADMINIS TER AND COLLECT THE TAX UNDER THIS 17
SECTION IN CONJUNCTION WITH THE FEE ON PLASTIC O R PAPER CARRYOUT BAG S 18
REQUIRED BY LOCAL LAW. 19
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 20
1, 2025. 21