EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*hb1469*
HOUSE BILL 1469
Q7, F1 5lr1165
By: Delegates Shetty and Pena–Melnyk
Introduced and read first time: February 7, 2025
Assigned to: Ways and Means and Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Taxes – Sugary Beverage Distributor Tax 2
(For Our Kids Act) 3
FOR the purpose of imposing a tax on certain distributors of certain sugary beverages, 4
syrups, and powders for the privilege of selling those products to certain retailers or 5
offering those products for sale to consumers in the State; and generally relating to 6
the taxation of sugary beverages. 7
BY repealing and reenacting, without amendments, 8
Article – Education 9
Section 7–602(a) and 7–704(b) and (c) 10
Annotated Code of Maryland 11
(2022 Replacement Volume and 2024 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Education 14
Section 7–602(b) 15
Annotated Code of Maryland 16
(2022 Replacement Volume and 2024 Supplement) 17
BY adding to 18
Article – Education 19
Section 7–606 20
Annotated Code of Maryland 21
(2022 Replacement Volume and 2024 Supplement) 22
BY repealing and reenacting, without amendments, 23
Article – Tax – General 24
Section 1–101(a) and 13–508(b) 25
Annotated Code of Maryland 26
(2022 Replacement Volume and 2024 Supplement) 27 2 HOUSE BILL 1469
BY adding to 1
Article – Tax – General 2
Section 1–101(v) and 2–102(a)(11); 2–14A–01 and 2–14A–02 to be under the new 3
subtitle “Subtitle 14A. Sugary Beverage Distributor Tax Revenue 4
Distribution”; 11.5–101 through 11.5–601 to be under the new title “Title 11.5. 5
Sugary Beverage Distributor Tax”; and 13–201(4)(xvi), 13–825(j), and 6
13–1001(h) 7
Annotated Code of Maryland 8
(2022 Replacement Volume and 2024 Supplement) 9
BY repealing and reenacting, with amendments, 10
Article – Tax – General 11
Section 2–102(a)(9) and (10), 13–201(4)(xvi) through (xviii), 13–508(a) and (c), 12
13–509, 13–1002(b) and (c), and 13–1101(b) and (c) 13
Annotated Code of Maryland 14
(2022 Replacement Volume and 2024 Supplement) 15
SECTION 1. BE IT ENACT ED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Education 18
7–602. 19
(a) There is a State Free Feeding Program. 20
(b) (1) Each year the State Superintendent shall determine the amount of 21
State money required to provide the Program in accordance with the standards adopted by 22
the State Board under this subtitle. 23
(2) The amount included for this Program in the annual State budget, 24
including any federal funds AND FUNDS FROM THE HEALTHY SCHOOL MEALS FOR ALL 25
FUND UNDER § 7–606 OF THIS SUBTITLE , and as submitted to and appropriated by the 26
General Assembly, shall be distributed to the county boards and participating nonpublic 27
schools in the same manner as the process established under § 5–205 of this article. 28
7–606. 29
(A) IN THIS SECTION, “FUND” MEANS THE HEALTHY SCHOOL MEALS FOR 30
ALL FUND. 31
(B) THERE IS A HEALTHY SCHOOL MEALS FOR ALL FUND. 32
(C) THE PURPOSE OF THE FUND IS TO PROVIDE FUNDING FOR : 33
HOUSE BILL 1469 3
(1) THE STATE FREE FEEDING PROGRAM UNDER § 7–602 OF THIS 1
SUBTITLE; AND 2
(2) THE MARYLAND MEALS FOR ACHIEVEMENT IN–CLASSROOM 3
BREAKFAST PROGRAM UNDER § 7–704 OF THIS TITLE. 4
(D) THE DEPARTMENT SHALL ADMINISTER THE FUND. 5
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 6
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 7
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 8
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 9
(F) THE FUND CONSISTS OF : 10
(1) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–14A–02 OF THE 11
TAX – GENERAL ARTICLE; 12
(2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 13
AND 14
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 15
THE BENEFIT OF THE FUND. 16
(G) THE FUND MAY BE USED ONLY FOR PROVIDING MEALS THRO UGH THE 17
STATE FREE FEEDING PROGRAM AND THE MARYLAND MEALS FOR ACHIEVEMENT 18
IN–CLASSROOM BREAKFAST PROGRAM. 19
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 20
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 21
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 22
THE GENERAL FUND OF THE STATE. 23
(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 24
WITH THE STATE BUDGET . 25
(J) MONEY EXPENDED FROM T HE FUND FOR THE STATE FREE FEEDING 26
PROGRAM AND THE MARYLAND MEALS FOR ACHIEVEMENT IN–CLASSROOM 27
BREAKFAST PROGRAM IS SUPPLEMENT AL TO AND IS NOT INTENDED TO T AKE THE 28
PLACE OF FUNDING THA T OTHERWISE WOULD BE APPROPRIATED FOR THE 29
PROGRAMS. 30 4 HOUSE BILL 1469
7–704. 1
(b) (1) There is a school breakfast program in the State, known as the 2
Maryland Meals for Achievement In–Classroom Breakfast Program. 3
(2) The Program is a joint effort of the Department and the county boards 4
or sponsoring agencies for eligible nonpublic schools. 5
(c) (1) The purpose of the Program is to provide funding for a school that 6
makes an in–classroom breakfast available to all students in the school. 7
(2) The funding is intended to complement the funding received by a school 8
from the federal government for a school breakfast program. 9
Article – Tax – General 10
1–101. 11
(a) In this article the following words have the meanings indicated. 12
(V) “SUGARY BEVERAGE DISTRIBUTOR TAX” MEANS THE TAX IMPOSE D 13
UNDER TITLE 11.5 OF THIS ARTICLE. 14
2–102. 15
(a) In addition to the duties set forth elsewhere in this article and in other articles 16
of the Code, the Comptroller shall administer the laws that relate to: 17
(9) the sales and use tax; [and] 18
(10) the savings and loan association franchise tax; AND 19
(11) THE SUGARY BEVERAGE DISTRIBUTOR TAX. 20
SUBTITLE 14A. SUGARY BEVERAGE DISTRIBUTOR TAX REVENUE DISTRIBUTION. 21
2–14A–01. 22
FROM THE SUGARY BEVER AGE DISTRIBUTOR TAX REVENUE , THE 23
COMPTROLLER SHALL DIS TRIBUTE THE AMOUNT N ECESSARY TO ADMINIST ER THE 24
SUGARY BEVERAGE DISTRIBUTOR TAX LAWS TO AN ADMIN ISTRATIVE COST 25
ACCOUNT. 26
2–14A–02. 27 HOUSE BILL 1469 5
AFTER MAKING THE DIST RIBUTION UNDER § 2–14A–01 OF THIS SUBTITLE, 1
EACH FISCAL YEAR THE COMPTROLLER SHALL DIS TRIBUTE THE REMAININ G 2
SUGARY BEVERAGE DISTRIBUTOR TAX REVENUE AS FOLLOWS: 3
(1) THE FIRST $189,000,000 TO THE HEALTHY SCHOOL MEALS FOR 4
ALL FUND ESTABLISHED UNDER § 7–606 OF THE EDUCATION ARTICLE; 5
(2) THE NEXT $50,000,000 TO THE CHILD CARE SCHOLARSHIP 6
PROGRAM ESTABLISHED U NDER § 9.5–113 OF THE EDUCATION ARTICLE WITHIN 7
THE STATE DEPARTMENT OF EDUCATION; AND 8
(3) THE REMAINDER TO THE GENERAL FUND OF THE STATE. 9
TITLE 11.5. SUGARY BEVERAGE DISTRIBUTOR TAX. 10
SUBTITLE 1. DEFINITIONS. 11
11.5–101. 12
(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 13
INDICATED. 14
(B) (1) “BEVERAGE FOR MEDICAL USE” MEANS A BEVERAGE SUI TABLE 15
FOR HUMAN CONSUMPTIO N AND MANUFACTURED F OR USE AS: 16
(I) AN ORAL THERAPY FOR PERSONS WHO CANNOT ABSORB OR 17
METABOLIZE DIETARY N UTRIENTS FROM FOOD O R BEVERAGES ; OR 18
(II) AN ORAL REHYDRATION ELECTROLYTE SOLUTION FOR 19
INFANTS AND CHILDREN FORMULATED TO PREVEN T OR TREAT DEHYDRATI ON DUE 20
TO ILLNESS. 21
(2) “BEVERAGE FOR MEDI CAL USE” INCLUDES A MEDICAL F OOD, AS 22
DEFINED IN 21 U.S.C. § 360EE(B)(3). 23
(3) “BEVERAGE FOR MEDICAL USE” DOES NOT INCLUDE A S PORT 24
DRINK. 25
(C) “CONSUMER” MEANS A PERSON WHO P URCHASES A SUGARY BEVERAGE 26
FOR CONSUMPTION AND NOT FOR SALE TO ANOT HER PERSON. 27
6 HOUSE BILL 1469
(D) “DISTRIBUTOR” MEANS A PERSON , INCLUDING A MANUFACT URER OR 1
WHOLESALE DEALER , WHO RECEIVES , STORES, MANUFACTURES , PACKAGES, OR 2
DISTRIBUTES PACKAGED SUGARY BEVERAGES, SYRUPS, OR POWDERS FOR SALE TO 3
RETAILERS DOING BUSINES S IN THE STATE, WHETHER OR NOT THE PERSON ALSO 4
SELLS THOSE PRODUCTS TO CONSUMERS . 5
(E) “MILK” MEANS: 6
(1) NATURAL LIQUID MILK , REGARDLESS OF ANIMAL OR PLANT 7
SOURCE OR BUTTERFAT CONTENT; 8
(2) NATURAL MILK CONCENT RATE, WHETHER OR NOT 9
RECONSTITUTED ; OR 10
(3) DEHYDRATED NATURAL M ILK, WHETHER OR NOT 11
RECONSTITUTED . 12
(F) “NATURAL FRUIT JUICE ” MEANS THE ORIGINAL L IQUID RESULTING 13
FROM THE PRESSING OF FRUITS OR THE LIQUID RESULT ING FROM THE DILUTIO N 14
WITH WATER OF DEHYDR ATED FRUIT JUICE . 15
(G) “NATURAL VEGETABLE JUI CE” MEANS THE ORIGINAL L IQUID 16
RESULTING FROM THE P RESSING OF VEGETABLE S OR THE LIQUID RESU LTING FROM 17
THE DILUTION WITH WA TER OF DEHYDRATED VE GETABLE JUICE . 18
(H) (1) “NONNUTRITIVE SWEETENE R” MEANS A NONNUTRITIVE 19
SUBSTANCE SUITABLE F OR CONSUMPTION THAT HUMANS PERCEIVE AS S WEET AND 20
CONTAINS FEWER THAN F IVE CALORIES PER SER VING. 21
(2) “NONNUTRITIVE SWEETENE R” INCLUDES ASPARTAME , 22
ACESULFAME –K, NEOTAME, SACCHARIN, SUCRALOSE, STEVIA, AND OTHER 23
ARTIFICIAL SWEETENER S. 24
(3) “NONNUTRITIVE SWEETENE R” DOES NOT INCLUDE SUG AR. 25
(I) “PLACE OF BUSINESS” MEANS A PLACE OF BUS INESS WHERE SUGARY 26
BEVERAGES, SYRUPS, OR POWDERS ARE MANUF ACTURED OR RECEIVED FOR SALE 27
IN THE STATE. 28
(J) “POWDER” MEANS ANY SOLID MIXTURE OF INGREDIENTS USED IN 29
MAKING, MIXING, OR COMPOUNDING SUGAR Y BEVERAGES BY MIXING THAT MIXTURE 30
WITH ONE OR MORE OTH ER INGREDIENTS , INCLUDING ICE, SYRUP, SIMPLE SYRUP, 31 HOUSE BILL 1469 7
FRUITS, VEGETABLES , FRUIT JUICE, VEGETABLE JUICE , AND CARBONATION OR 1
OTHER GAS. 2
(K) “RETAILER” MEANS A PERSON WHO SELLS O R OTHERWISE DISPENSE S 3
SUGARY BEVERAGES TO CONSUMERS , WHETHER OR NOT THE P ERSON IS ALSO A 4
DISTRIBUTOR. 5
(L) “SALE” MEANS THE TRANSFER OF TITL E OR POSSESSION FOR VALUABLE 6
CONSIDERATION , REGARDLESS OF THE MA NNER BY WHICH THE TR ANSFER IS 7
COMPLETED . 8
(M) (1) “SUGAR” MEANS A MONOSACCHARI DE OR DISA CCHARIDE 9
NUTRITIVE SWEETENER THAT CONTAINS AT LEA ST FIVE CALORIES PER SERVING. 10
(2) “SUGAR” INCLUDES GLUCOSE , FRUCTOSE, LACTOSE, AND 11
SUCROSE. 12
(N) (1) “SUGARY BEVERAGE ” MEANS A BEVERAGE , WHETHER 13
CARBONATED OR NONCAR BONATED, THAT: 14
(I) IS INTENDED FOR HUMAN CONSUMPTION AN D CONTAINS 15
ADDED SUGARS OR NONN UTRITIVE SWEETENERS ; AND 16
(II) IS NOT AN ALCOHOLIC BEVERAGE, AS DEFINED UNDER § 17
1–101 OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE. 18
(2) “SUGARY BEVERAGE ” DOES NOT INCLUDE : 19
(I) NATURAL FRUIT JUICE; 20
(II) NATURAL VEGETABLE JU ICE; 21
(III) MILK; 22
(IV) INFANT FORMULA ; 23
(V) A BEVERAGE FOR MEDIC AL USE; OR 24
(VI) WATER THAT IS NOT FL AVORED USING SUGAR O R 25
NONNUTRITIVE SWEETEN ERS. 26
(O) “SYRUP” MEANS A LIQUID MIXTURE OF INGREDIENTS USED IN MAKING, 27
MIXING, OR COMPOUNDING SUGAR Y BEVERAGES USING ONE OR MORE OT HER 28 8 HOUSE BILL 1469
INGREDIENTS, INCLUDING WATER , ICE, POWDER, SIMPLE SYRUP , FRUITS, 1
VEGETABLES , FRUIT JUICE, VEGETABLE JUICE , AND CARBONATION OR O THER GAS. 2
SUBTITLE 2. SUGARY BEVERAGE DISTRIBUTOR REGISTRY. 3
11.5–201. 4
(A) A DISTRIBUTOR DOING BU SINESS IN THE STATE SHALL REGISTER EACH 5
PLACE OF BUSINESS OW NED AND OPERATED BY THE DISTRIBUTOR WITH THE 6
COMPTROLLER IN ACCORDANCE WITH § 11.5–202 OF THIS SUBTITLE. 7
(B) A DISTRIBUTOR MAY NOT SELL A SUGARY BEVERAGE, SYRUP, OR 8
POWDER IN THE STATE UNLESS THE DISTRIBUT OR HAS REGISTERED WI TH THE 9
COMPTROLLER IN ACCORD ANCE WITH SUBSECTION (A) OF THIS SECTION. 10
11.5–202. 11
(A) EACH DISTRIBUTOR SHALL SUBMIT ON A FORM AND IN THE FORMAT THE 12
COMPTROLLER SPECIFIES : 13
(1) THE NAME OF THE DISTRIBUTOR; 14
(2) THE OWNERS OF THE DI STRIBUTOR; 15
(3) THE STREET ADDRESS A ND TELEPHONE NUMBER OF EACH PLACE 16
OF BUSINESS OWNED AN D OPERATED BY THE DI STRIBUTOR; 17
(4) THE NATURE OF THE BU SINESS IN WHICH THE DISTRIBU TOR IS 18
ENGAGED; AND 19
(5) ANY OTHER INFORMATIO N THAT THE COMPTROLLER REQUIRES . 20
(B) (1) IF A DISTRIBUTOR COMPLIES WITH THE RE QUIREMENTS OF THIS 21
SECTION, THE COMPTROLLER SHALL APP ROVE THE REGISTRATIO N. 22
(2) A REGISTRATION UNDER T HIS SECTION IS VALID UNT IL 23
DECEMBER 31 OF THE YEAR IN WHICH THE COMPTROLLER APPROVES THE 24
REGISTRATION . 25
SUBTITLE 3. SUGARY BEVERAGE DISTRIBUTOR TAX. 26
11.5–301. 27
HOUSE BILL 1469 9
EXCEPT AS PROVIDED IN § 11.5–303 OF THIS SUBTITLE , BEGINNING JULY 1, 1
2026, A TAX IS IMPOSED ON EACH DISTRIBUTOR FOR THE PRIVILEGE OF SEL LING 2
SUGARY BEVERAGES , SYRUPS, AND POWDER IN THE STATE. 3
11.5–302. 4
(A) THE RATE OF THE SUGARY BEVERAGE DIST RIBUTOR TAX IS: 5
(1) WITH RESPECT TO SUGA RY BEVERAGES SOLD TO A RETAILER F OR 6
SALE IN THE STATE TO A CONSUMER OR , IN THE CASE OF A DIS TRIBUTOR WHO IS 7
ALSO A RETAILER , DIRECTLY OFFERED FOR SALE TO A CONSUMER IN THE STATE BY 8
THE DISTRIBUTOR, 2 CENTS PER OUNCE OF SUGARY BEVERAGE; AND 9
(2) WITH RESPECT TO SYRU PS OR POWDERS SOLD T O A RETAILER IN 10
THE STATE TO A CONSUMER OR , IN THE CASE OF A DIS TRIBUTOR WHO IS ALSO A 11
RETAILER, DIRECTLY OFFERED FOR SALE TO A CONSUMER IN THE STATE BY THE 12
DISTRIBUTOR, 2 CENTS PER OUNCE OF THE SUG ARY BEVERAGE PRODUCED FROM 13
THAT SYRUP OR POWDER BASED ON THE LARGER OF: 14
(I) THE LARGEST VOLUME RESUL TING FROM THE USE OF THE 15
SYRUP OR POWDER ACCO RDING TO ANY MANUFAC TURER’S INSTRUCTIONS ; OR 16
(II) THE ACTUAL VOLUME PR ODUCED BY THE RETAIL ER, AS 17
REASONABLY DETERMINE D BY THE COMPTROLLER . 18
(B) (1) THE SUGARY BEVERAGE D ISTRIBUTOR TAX RA TES SPECIFIED 19
UNDER SUBSECTION (A) OF THIS SECTION SHAL L BE INCREASED ON JULY 1, 2027, 20
AND JULY 1 EACH SUBSEQUENT YEAR IN ACCORDANCE WITH T HIS SECTION. 21
(2) ON OR BEFORE JUNE 1 EACH YEAR, THE COMPTROLLER SHALL 22
DETERMINE AND ANNOUN CE: 23
(I) THE GROWTH I N THE CONSUMER PRICE INDEX FOR ALL 24
URBAN CONSUMERS AS DETERMIN ED BY THE COMPTROLLER UNDER PAR AGRAPH 25
(3) OF THIS SUBSECTION ; AND 26
(II) THE SUGARY BEVERAGE DISTRIBUTOR TAX RATE S 27
EFFECTIVE FOR THE FI SCAL YEAR BEGINNING ON THE FOLLOWING JULY 1 AS 28
DETERMINED BY THE COMPTROLLER UNDER PAR AGRAPH (4) OF THIS SUBSECTION . 29
(3) (I) IN THIS PARAGRAPH , “CONSUMER PRICE INDEX FOR ALL 30
URBAN CONSUMERS” MEANS THE CONSUMER PRICE INDEX FOR ALL URBAN 31 10 HOUSE BILL 1469
CONSUMERS FOR THE MID–ATLANTIC STATISTICAL AREA PUBLISHED BY THE U.S. 1
DEPARTMENT OF LABOR. 2
(II) THE PERCENTAGE GROWTH IN THE CONSUMER PRICE 3
INDEX FOR ALL URBAN CONSUMERS SHALL BE DETERMINED BY COMPARING THE 4
AVERAGE OF THE INDEX FOR THE 12 MONTHS ENDING ON THE PRECEDING APRIL 30 5
TO THE AVERAGE OF TH E INDEX FOR THE PRIOR 12 MONTHS. 6
(4) SUBJECT TO PARAGRAPH (5) OF THIS SUBSECTION , ON JULY 1 7
EACH YEAR, THE SUGARY BEVERAGE DISTRIBUTOR TAX RATE S SPECIFIED UNDER 8
SUBSECTION (A) OF THIS SECTION SHAL L BE INCREASED BY TH E AMOUNT, ROUNDED 9
TO THE NEAREST ONE –TENTH OF A CENT , THAT EQUALS THE PROD UCT OF 10
MULTIPLYING : 11
(I) THE SUGARY BEVERAGE DISTRIBUTOR TAX RATE IN EFFECT 12
ON THE DATE OF THE COMPTROLLER ’S ANNOUNCEMENT UNDER PARAGRAPH (2) OF 13
THIS SUBSECTION ; AND 14
(II) THE PERCENTAGE GROWT H IN THE CONSUMER PRICE 15
INDEX FOR ALL URBAN CONSUMERS. 16
(5) IF THERE IS A DECLINE OR NO GROWTH IN THE CONSUMER PRICE 17
INDEX FOR ALL URBAN CONSUMERS, THE SUGARY BEVERAGE DISTRIBUTOR TAX 18
RATE SHALL REMAIN UN CHANGED. 19
11.5–303. 20
A DISTRIBUTOR SHALL EX CLUDE THE FOLLOWING SUGARY BEVERAGES , 21
SYRUPS, AND POWDERS WHEN DET ERMINING THE SUGARY B EVERAGE DISTRIBUTOR 22
TAX DUE UNDER THIS S UBTITLE: 23
(1) SUGARY BEVERAGES , SYRUPS, AND POWDERS SOLD TO THE 24
UNITED STATES GOVERNMENT AND AMERICAN INDIAN TRIBAL GOVERNM ENTS; 25
(2) SUGARY BEVERAGES , SYRUPS, AND POWDERS SOLD BY A 26
DISTRIBUTOR OR RETAI LER EXPRESSLY FOR RE SALE OR CONSUMPTION OUTSIDE 27
THE STATE; AND 28
(3) SUGARY BEVERAGES , SYRUPS, OR POWDERS SOLD BY T HE 29
DISTRIBUTOR TO ANOTH ER DISTRIBUTOR THAT IS REGISTERED IN ACC ORDANCE 30
WITH § 11.5–201 OF THIS TITLE, IF THE SALES INVOI CE CLEARLY INDICATES THAT 31
THE SALE IS EXEMPT . 32
HOUSE BILL 1469 11
SUBTITLE 4. RETURNS. 1
11.5–401. 2
(A) EACH DISTRIBUTOR SHALL COMPLETE , UNDER OATH , AND FILE WITH 3
THE COMPTROLLER A RETURN : 4
(1) ON OR BEFORE THE 25TH DAY OF THE MONTH THAT FOLLOWS THE 5
MONTH IN WHICH THE D ISTRIBUTOR SOLD OR , IN THE CASE OF A DISTRIBUTOR THAT 6
IS ALSO A RETAILER , OFFERED FOR SALE SUGARY BEVERAGES , SYRUPS, OR 7
POWDERS FOR SALE TO CONSUMERS IN THE STATE; AND 8
(2) IF THE COMPTROLLER SPECIFIES , BY REGULATION , ON OTHER 9
DATES FOR EACH MONTH IN WHICH THE DISTRIB UTOR DID NOT SELL ANY SUGARY 10
BEVERAGES, SYRUPS, OR POWDERS FOR SALE TO CONSUMERS IN THE STATE. 11
(B) A PERSON REQUIRED TO F ILE A RETURN UNDER T HIS SECTION SHALL 12
FILE WITH THE RETURN AN ATTACHMENT THAT S TATES ANY INFO RMATION THAT 13
THE COMPTROLLER REQUIRES . 14
11.5–402. 15
A PERSON REQUIRED TO F ILE A RETURN UNDER § 11.5–401 OF THIS SUBTITLE 16
SHALL MAINTAIN RECOR DS OF SUGARY BEVERAGES , SYRUPS, OR POWDERS SOLD 17
AND THE BASIS FOR TH E CALCULATION OF THE SUGARY BEVERAGE DISTRIBUTO R 18
TAX OWED. 19
SUBTITLE 5. TAX PAYMENT. 20
11.5–501. 21
EACH PERSON REQUIRED TO FILE A RETURN UND ER § 11.5–401 OF THIS TITLE 22
SHALL PAY THE SUGARY BEVERAGE DISTRIBUTOR TAX WITH THE RETURN THAT 23
COVERS THE PERIOD FO R WHICH THE TAX IS D UE. 24
SUBTITLE 6. MISCELLANEOUS . 25
11–601. 26
THIS TITLE MAY NOT BE CONSTRUED TO LIMIT T HE AUTHORITY OF A 27
POLITICAL SUBDIVISIO N OF THE STATE TO ADOPT OR IMP LEMENT A TAX RELATED 28
TO SUGARY BEVERAGES . 29
12 HOUSE BILL 1469
13–201. 1
In this subtitle, “tax information” means: 2
(4) any information contained in: 3
(XVI) A SUGARY BEVERAGE DISTRIBUTOR TAX RETURN; 4
[(xvi)] (XVII) a tire recycling fee return; 5
[(xvii)] (XVIII) a tobacco tax return; or 6
[(xviii)] (XIX) a transportation services assessment return. 7
13–508. 8
(a) Within 30 days after the date on which a notice of assessment of the 9
admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, income 10
tax, motor carrier tax, motor fuel tax, public service company franchise tax, financial 11
institution franchise tax, sales and use tax, SUGARY BEVERAGE DISTRIBUTOR TAX, or 12
tobacco tax is mailed, a person or governmental unit against which the assessment is made 13
may submit to the tax collector: 14
(1) an application for revision of the assessment; or 15
(2) except for the public service company franchise tax, if the assessment 16
is paid, a claim for refund. 17
(b) If a person or governmental unit fails to submit an application for revision or 18
claim for refund within the time allowed in subsection (a) of this section, the assessment 19
becomes final. 20
(c) The Comptroller or an employee of the Comptroller’s office expressly 21
designated by the Comptroller promptly: 22
(1) (i) shall hold an informal hearing on a person’s or governmental 23
unit’s admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, 24
income tax, motor carrier tax, motor fuel tax, sales and use tax, SUGARY BEVERAGE 25
DISTRIBUTOR TAX, or tobacco tax application for revision or claim for refund under 26
subsection (a) of this section; and 27
(ii) after the hearing: 28
1. shall act on the application for revision; and 29
HOUSE BILL 1469 13
2. may assess any additional tax, penalty, and interest due; 1
and 2
(2) shall mail to the person or governmental unit a notice of final 3
determination. 4
13–509. 5
(a) Notwithstanding a person’s failure to file a timely application for revision or 6
claim for refund of an assessment of the admissions and amusement tax, alcoholic beverage 7
tax, boxing and wrestling tax, income tax, motor carrier tax, motor fuel tax, sales and use 8
tax, SUGARY BEVERAGE DISTRIBUTOR TAX, or tobacco tax under § 13–508(a) of this 9
subtitle, the Comptroller or the Comptroller’s designee may issue an order decreasing or 10
abating an assessment to correct an erroneous assessment. 11
(b) If action is taken under subsection (a) of this section, the order shall state 12
clearly the reasons for decreasing or abating the assessment. 13
(c) Any order issued by the Comptroller under subsection (a) of this section shall 14
be final and not subject to appeal. 15
(d) The Comptroller’s refusal to enter an order under subsection (a) of this section 16
shall be final and not subject to appeal. 17
13–825. 18
(J) THE COMPTROLLER MAY REQUI RE A PERSON SUBJECT TO THE SUGARY 19
BEVERAGE DISTRIBUTOR TAX TO POST SECURITY FOR THE TAX IN THE A MOUNT 20
THAT THE COMPTROLLER DETERMINE S. 21
13–1001. 22
(H) A PERSON WHO IS REQUIR ED TO FILE A SUGARY BEVERAGE 23
DISTRIBUTOR TAX RETURN AND WHO W ILLFULLY FAILS TO FI LE THE RETURN AS 24
REQUIRED UNDER TITLE 11.5 OF THIS ARTICLE IS G UILTY OF A MISDEMEAN OR AND 25
ON CONVICTION IS SUB JECT TO A FINE NOT E XCEEDING $5,000 OR IMPRISONMENT 26
NOT EXCEEDING 5 YEARS OR BOTH . 27
13–1002. 28
(b) A person, including an officer of a corporation, who willfully files a false digital 29
advertising gross revenues tax return, a false financial institution franchise tax return, a 30
false public service company franchise tax return, [or] a false income tax return, OR A 31
FALSE SUGARY BEVERAG E DISTRIBUTOR TAX RETURN with the intent to evade the 32
payment of tax due under this article is guilty of perjury and, on conviction, is subject to 33
the penalty for perjury. 34 14 HOUSE BILL 1469
(c) Subsections (a) and (b) of this section apply to the alcoholic beverage, digital 1
advertising gross revenues, financial institution franchise, public service company 2
franchise, [and] income, AND SUGARY BEVERAGE DISTRIBUTOR taxes. 3
13–1101. 4
(b) An assessment of digital advertising gross revenues tax, financial institution 5
franchise tax, public service company franchise tax, income tax, [or] estate tax, OR 6
SUGARY BEVERAGE DISTRIBUTOR TAX may be made at any time if: 7
(1) a false return is filed with the intent to evade the tax; 8
(2) a willful attempt is made to evade the tax; 9
(3) a return is not filed as required under Title 7, Title 7.5, Title 8, [or] 10
Title 10, OR TITLE 11.5 of this article; 11
(4) an amended estate tax return is not filed as required under Title 7 of 12
this article; 13
(5) an incomplete return is filed; or 14
(6) a report of federal adjustment is not filed within the period required 15
under § 13–409 of this title. 16
(c) If a report of federal adjustment is filed within the time required under § 17
13–409 of this title, the tax collector shall assess the digital advertising gross revenues tax, 18
financial institution franchise tax, public service company franchise tax, income tax, [or] 19
estate tax, OR SUGARY BEVERAGE DISTRIBUTOR TAX within 1 year after the date on 20
which the tax collector receives the report. 21
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22
1, 2025. 23