Maryland 2025 Regular Session

Maryland House Bill HB414 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0414
6	6
7	7	HOUSE BILL 414
8	8	J1, Q7 5lr0997
9	9	HB 1372/24 – W&M
10	10	By: Delegates Martinez and Young
11	11	Introduced and read first time: January 16, 2025
12	12	Assigned to: Ways and Means
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Health and Taxation – Digital Social Media Services and the Mental Health Care 2
19	19	Fund for Children and Youth 3
20	20
21	21	FOR the purpose of establishing the Mental Health Care Fund for Children and Youth as 4
22	22	a special, nonlapsing fund to improve access to mental health care services to 5
23	23	children and youth in the State; imposing a tax on certain annual revenues derived 6
24	24	from certain digital social media services in the State; providing for the calculation 7
25	25	and collection of the tax; requiring the Comptroller to distribute revenue from the 8
26	26	tax in a certain manner; and generally relating to the digital social media gross 9
27	27	revenues tax and mental health care services for children and youth. 10
28	28
29	29	BY adding to 11
30	30	Article – Health – General 12
31	31	Section 10–209 13
32	32	Annotated Code of Maryland 14
33	33	(2023 Replacement Volume and 2024 Supplement) 15
34	34
35	35	BY repealing and reenacting, without amendments, 16
36	36	Article – State Finance and Procurement 17
37	37	Section 6–226(a)(2)(i) 18
38	38	Annotated Code of Maryland 19
39	39	(2021 Replacement Volume and 2024 Supplement) 20
40	40
41	41	BY repealing and reenacting, with amendments, 21
42	42	Article – State Finance and Procurement 22
43	43	Section 6–226(a)(2)(ii)204. and 205. 23
44	44	Annotated Code of Maryland 24
45	45	(2021 Replacement Volume and 2024 Supplement) 25
46	46
47	47	BY adding to 26
48	48	Article – State Finance and Procurement 27 2 HOUSE BILL 414
49	49
50	50
51	51	Section 6–226(a)(2)(ii)206. 1
52	52	Annotated Code of Maryland 2
53	53	(2021 Replacement Volume and 2024 Supplement) 3
54	54
55	55	BY repealing and reenacting, without amendments, 4
56	56	Article – Tax – General 5
57	57	Section 1–101(a) 6
58	58	Annotated Code of Maryland 7
59	59	(2022 Replacement Volume and 2024 Supplement) 8
60	60
61	61	BY repealing and reenacting, with amendments, 9
62	62	Article – Tax – General 10
63	63	Section 1–101(g–2), 2–102(a), 13–201(4), 13–402(a)(5) and (6), 13–602(a), 13–702(a), 11
64	64	13–1002(b) and (c), and 13–1101(b) and (c) 12
65	65	Annotated Code of Maryland 13
66	66	(2022 Replacement Volume and 2024 Supplement) 14
67	67
68	68	BY adding to 15
69	69	Article – Tax – General 16
70	70	Section 1–101(g–2); 2–4B–01 and 2–4B–02 to be under the new subtitle “Subtitle 4B. 17
71	71	Digital Social Media Gross Revenues Tax Distribution”; 7.7–101 through 18
72	72	7.7–301 to be under the new title “Title 7.7. Digital Social Media Gross 19
73	73	Revenues Tax”; and 13–402(a)(7) and 13–1001(h) 20
74	74	Annotated Code of Maryland 21
75	75	(2022 Replacement Volume and 2024 Supplement) 22
76	76
77	77	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARY LAND, 23
78	78	That the Laws of Maryland read as follows: 24
79	79
80	80	Article – Health – General 25
81	81
82	82	10–209. 26
83	83
84	84	(A) IN THIS SECTION, “FUND” MEANS THE MENTAL HEALTH CARE FUND 27
85	85	FOR CHILDREN AND YOUTH. 28
86	86
87	87	(B) THERE IS A MENTAL HEALTH CARE FUND FOR CHILDREN AND YOUTH. 29
88	88
89	89	(C) THE PURPOSE OF THE FUND IS TO IMPROVE AC CESS TO MENTAL 30
90	90	HEALTH CARE SERVICES FOR CHILDREN AND YOU TH IN THE STATE. 31
91	91
92	92	(D) THE SECRETARY SHALL ADMIN ISTER THE FUND. 32
93	93
94	94	(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 33
95	95	SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 34
96	96	HOUSE BILL 414 3
97	97
98	98
99	99	(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 1
100	100	AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 2
101	101
102	102	(F) THE FUND CONSISTS OF : 3
103	103
104	104	(1) REVENUE DISTRIBUTED T O THE FUND UNDER TITLE 2, SUBTITLE 4
105	105	4B OF THE TAX – GENERAL ARTICLE; 5
106	106
107	107	(2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 6
108	108
109	109	(3) INTEREST EARNINGS OF THE FUND; AND 7
110	110
111	111	(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 8
112	112	THE BENEFIT OF THE FUND. 9
113	113
114	114	(G) THE FUND MAY BE USED ONLY FOR IMPROVING ACCESS TO MENTAL 10
115	115	HEALTH CARE SER VICES FOR CHILDREN A ND YOUTH IN THE STATE. 11
116	116
117	117	(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 12
118	118	IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 13
119	119
120	120	(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 14
121	121	THE FUND. 15
122	122
123	123	(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 16
124	124	WITH THE STATE BUDGET . 17
125	125
126	126	(J) MONEY EXPENDED FROM T HE FUND FOR IMPROVING AC CESS TO 18
127	127	MENTAL HEALTH CARE F OR CHILDREN AND YOUT H IN THE STATE IS SUPPLEMENTAL 19
128	128	TO AND IS NOT INTEND ED TO TAKE THE PLACE OF FUNDING THAT OTHERWISE 20
129	129	WOULD BE APPROPRIATE D FOR IMPROVING ACCE SS TO MENTAL HEALTH CARE FOR 21
130	130	CHILDREN AND YOUTH I N THE STATE. 22
131	131
132	132	Article – State Finance and Procurement 23
133	133
134	134	6–226. 24
135	135
136	136	(a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 25
137	137	through 2028. 26
138	138
139	139	2. Notwithstanding any other provision of law, and unless 27
140	140	inconsistent with a federal law, grant agreement, or other federal requirement or with the 28
141	141	terms of a gift or settlement agreement, net interest on all State money allocated by the 29
142	142	State Treasurer under this section to special funds or accounts, and otherwise entitled to 30 4 HOUSE BILL 414
143	143
144	144
145	145	receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 1
146	146	Fund of the State. 2
147	147
148	148	(ii) The provisions of subparagraph (i) of this paragraph do not apply 3
149	149	to the following funds: 4
150	150
151	151	204. the Victims of Domestic Violence Program Grant Fund; 5
152	152	[and] 6
153	153
154	154	205. the Proposed Programs Collaborative Grant Fund; AND 7
155	155
156	156	206. THE MENTAL HEALTH CARE FUND FOR CHILDREN 8
157	157	AND YOUTH. 9
158	158
159	159	SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 10
160	160	as follows: 11
161	161
162	162	Article – Tax – General 12
163	163
164	164	1–101. 13
165	165
166	166	(a) In this article the following words have the meanings indicated. 14
167	167
168	168	(G–2) “DIGITAL SOCIAL MEDIA GROSS REVENUES TAX ” MEANS THE TAX 15
169	169	IMPOSED UNDER TITLE 7.7 OF THIS ARTICLE. 16
170	170
171	171	[(g–2)] (G–3) (1) “Executive Director” means the Executive Director of the 17
172	172	Alcohol, Tobacco, and Cannabis Commission. 18
173	173
174	174	(2) “Executive Director” includes a deputy, an inspector, or any other 19
175	175	individual acting within the scope of the Executive Director’s authority. 20
176	176
177	177	2–102. 21
178	178
179	179	(a) In addition to the duties set forth elsewhere in this article and in other articles 22
180	180	of the Code, the Comptroller shall administer the laws that relate to: 23
181	181
182	182	(1) the admissions and amusement tax; 24
183	183
184	184	(2) the boxing and wrestling tax; 25
185	185
186	186	(3) the digital advertising gross revenues tax; 26
187	187
188	188	(4) THE DIGITAL SOCIAL M EDIA GROSS REVENUES TAX; 27
189	189
190	190	(5) the income tax; 28 HOUSE BILL 414 5
191	191
192	192
193	193
194	194	[(5)] (6) the Maryland estate tax; 1
195	195
196	196	[(6)] (7) the Maryland generation–skipping transfer tax; 2
197	197
198	198	[(7)] (8) the motor carrier tax; 3
199	199
200	200	[(8)] (9) the motor fuel tax; 4
201	201
202	202	[(9)] (10) the sales and use tax; and 5
203	203
204	204	[(10)] (11) the savings and loan association franchise tax. 6
205	205
206	206	SUBTITLE 4B. DIGITAL SOCIAL MEDIA GROSS REVENUES TAX DISTRIBUTION. 7
207	207
208	208	2–4B–01. 8
209	209
210	210	FROM THE DIGITAL SOCI AL MEDIA GROSS REVENUES TAX REVENUE , THE 9
211	211	COMPTROLLER SHALL DIS TRIBUTE EACH QUARTER THE AMOUNT NECESSARY TO 10
212	212	ADMINISTER THE DIGIT AL SOCIAL MEDIA GROS S REVENUES TAX LAWS IN THE 11
213	213	PREVIOUS QUARTER TO AN ADMINISTRATIVE CO ST ACCOUNT. 12
214	214
215	215	2–4B–02. 13
216	216
217	217	AFTER MAKING THE DIST RIBUTION RE QUIRED UNDER § 2–4B–01 OF THIS 14
218	218	SUBTITLE, THE COMPTROLLER SHALL DIS TRIBUTE THE REMAININ G DIGITAL 15
219	219	SOCIAL MEDIA GROSS R EVENUES TAX REVENUE TO THE MENTAL HEALTH CARE 16
220	220	FUND FOR CHILDREN AND YOUTH ESTABLISHED UND ER § 10–209 OF THE 17
221	221	HEALTH – GENERAL ARTICLE. 18
222	222
223	223	TITLE 7.7. DIGITAL SOCIAL MEDIA GROSS REVENUES TAX. 19
224	224
225	225	SUBTITLE 1. DEFINITIONS; GENERAL PROVISIONS. 20
226	226
227	227	7.7–101. 21
228	228
229	229	(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 22
230	230	INDICATED. 23
231	231
232	232	(B) “ANNUAL GROSS REVENUES ” MEANS INCOME OR REVE NUE FROM ALL 24
233	233	SOURCES, BEFORE ANY EXPENSES OR TAXES , COMPUTED ACCORDING T O 25
234	234	GENERALLY ACCEPTED A CCOUNTING PRINCIPLES . 26
235	235
236	236	(C) “ASSESSABLE BASE ” MEANS THE ANNUAL GRO SS REVENUES DERIVED 27 6 HOUSE BILL 414
237	237
238	238
239	239	FROM DIGITAL SOCIAL MEDIA SERVICES IN TH E STATE. 1
240	240
241	241	(D) (1) “DIGITAL SOCIAL MEDIA SERVICE” MEANS A SERVICE PROVIDED 2
242	242	TO THE PUBLIC THROUG H AN INTERNET WEBSITE OR A MOBILE APPLICATION T HAT: 3
243	243
244	244	(I) INCLUDES FEATURES TH AT ALLOW A USER TO S HARE 4
245	245	IMAGES, TEXT, OR VIDEO THROUGH THE INTERNET WITH OTHER U SERS OF THE 5
246	246	SERVICE WHOM THE USE R HAS MET, IDENTIFIED, OR BECOME A WARE OF THROUGH 6
247	247	THE USE OF THE SERVI CE; AND 7
248	248
249	249	(II) HAS MORE THAN 1,000,000 MONTHLY ACTIVE USERS IN THE 8
250	250	UNITED STATES OR GENERATES M ORE THAN $500,000,000 IN ANNUAL GROSS 9
251	251	REVENUE, ADJUSTED ANNUALLY FO R INFLATION. 10
252	252
253	253	(2) “DIGITAL SOCIAL MEDIA SERVICE” DOES NOT INCLUDE A SERVIC E 11
254	254	THAT IS PRIMARILY US ED FOR: 12
255	255
256	256	(I) THE SALE OR PROVISIO N OF PROFESSIONAL SE RVICES; 13
257	257
258	258	(II) THE SALE OF COMMERCI AL PRODUCTS ; OR 14
259	259
260	260	(III) IF THE SERVICE DOES NOT INCLUDE THE ABIL ITY FOR 15
261	261	CONTENT TO BE SENT B Y A USER DIRECTLY TO ANOTHER USER, THE PROVISION OF 16
262	262	NEWS OR INFORMATION . 17
263	263
264	264	(E) “USER” MEANS AN INDIVIDUAL OR ANY OTHER PERSON WHO ACCESSES 18
265	265	A DIGITAL INTERFACE WITH A DEVICE. 19
266	266
267	267	7.7–102. 20
268	268
269	269	(A) A TAX IS IMPOSED ON AN NUAL GROSS REVENUES OF A PERSON DERIVED 21
270	270	FROM DIGITAL SOCIAL MEDIA SERVICES IN THE STATE. 22
271	271
272	272	(B) (1) FOR PURPOSES OF THIS TITLE, THE PART OF THE ANNU AL GROSS 23
273	273	REVENUES OF A PERSON DERIVED FROM DIGITAL SOCIAL MEDIA SERVICE S IN THE 24
274	274	STATE SHALL BE DETERM INED USING AN APPORT IONMENT FRACTION : 25
275	275
276	276	(I) THE NUMERATOR OF WHI CH IS THE ANN UAL GROSS 26
277	277	REVENUES OF A PERSON DERIVED FROM DIGITAL SOCIAL MEDIA SERVICE S IN THE 27
278	278	STATE; AND 28
279	279
280	280	(II) THE DENOMINATOR OF W HICH IS THE ANNUAL G ROSS 29
281	281	REVENUES OF A PERSON DERIVED FROM DIGITAL SOCIAL MEDIA SERVICE S IN THE 30 HOUSE BILL 414 7
282	282
283	283
284	284	UNITED STATES. 1
285	285
286	286	(2) THE COMPTROLLER SHALL ADOPT REGULATI ONS THAT 2
287	287	DETERMINE THE STATE FROM WHICH REVENUES FROM DIGITAL SOCIAL MEDIA 3
288	288	SERVICES ARE DERIVED . 4
289	289
290	290	7.7–103. 5
291	291
292	292	THE DIGITAL SOCIAL ME DIA GROSS REVENUES T AX RATE IS: 6
293	293
294	294	(1) 5% OF THE ASSESSABLE BA SE FOR A PERSON WITH GLOBAL 7
295	295	ANNUAL GROSS REV ENUES OF $500,000,000 THROUGH $1,000,000,000; 8
296	296
297	297	(2) 7.5% OF THE ASSESSABLE BA SE FOR A PERSON WITH GLOBAL 9
298	298	ANNUAL GROSS REVENUE S OF $1,000,000,001 THROUGH $10,000,000,000; AND 10
299	299
300	300	(3) 10% OF THE ASSESSABLE BA SE FOR A PERSON WITH GLOBAL 11
301	301	ANNUAL GROSS REVENUE S EXCEEDING $10,000,000,000. 12
302	302
303	303	SUBTITLE 2. RETURNS. 13
304	304
305	305	7.7–201. 14
306	306
307	307	(A) EACH PERSON THAT , IN A CALENDAR YEAR , HAS ANNUAL GROSS 15
308	308	REVENUES DERIVED FRO M DIGITAL SOCIAL MED IA SERVICES IN THE STATE OF AT 16
309	309	LEAST $1,000,000 SHALL COMPLETE , UNDER OATH , AND FILE WITH THE 17
310	310	COMPTROLLER A RETURN , ON OR BEFORE APRIL 15 OF THE NEXT YEAR . 18
311	311
312	312	(B) (1) EACH PERSON THAT REAS ONABLY EXPECTS THE P ERSON’S 19
313	313	ANNUAL GROSS REVENUE S DERIVED FROM DIGIT AL SOCIAL MEDIA SERV ICES IN THE 20
314	314	STATE TO EXCEED $1,000,000 SHALL COMPLETE , UNDER OATH , AND FILE WITH THE 21
315	315	COMPTROLLER A DECLARA TION OF ESTIMATED TA X, ON OR BEFORE APRIL 15 OF 22
316	316	THAT YEAR. 23
317	317
318	318	(2) A PERSON REQUIRED UNDE R PARAGRAPH (1) OF THIS 24
319	319	SUBSECTION TO FILE A DECLARATION OF ESTIM ATED TAX FOR A TAXAB LE YEAR 25
320	320	SHALL COMPLETE AND F ILE WITH THE COMPTROLLER A QUARTERLY ESTIMATE D 26
321	321	TAX RETURN ON OR BEF ORE JUNE 15, SEPTEMBER 15, AND DECEMBER 15 OF THAT 27
322	322	YEAR. 28
323	323
324	324	(C) A PERSON REQUIRED TO F ILE A RETURN UNDER T HIS SECTION SHALL 29
325	325	FILE WITH THE RETURN AN ATTACHMENT THAT S TATES ANY INFORMATIO N THAT 30
326	326	THE COMPTROLLER REQUIRE S TO DETERMINE ANNUA L GROSS REVENUES DER IVED 31 8 HOUSE BILL 414
327	327
328	328
329	329	FROM DIGITAL SOCIAL MEDIA SERVICES IN TH E STATE. 1
330	330
331	331	7.7–202. 2
332	332
333	333	A PERSON REQUIRED TO F ILE A RETURN UNDER § 7.7–201 OF THIS SUBTITLE 3
334	334	SHALL MAINTAIN RECOR DS OF DIGITAL SOCIAL MEDIA SERVICES PROVI DED IN THE 4
335	335	STATE AND THE BASIS FOR THE CA LCULATION OF THE DIG ITAL SOCIAL MEDIA 5
336	336	GROSS REVENUES TAX O WED. 6
337	337
338	338	SUBTITLE 3. TAX PAYMENT. 7
339	339
340	340	7.7–301. 8
341	341
342	342	(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , EACH 9
343	343	PERSON REQUIRED TO F ILE A RETURN UNDER § 7.7–201 OF THIS TITLE SHALL PAY 10
344	344	THE DIGITAL SOCIAL M EDIA GROSS REVENUES TAX WITH THE RETURN THAT COVERS 11
345	345	THE PERIOD FOR WHICH THE TAX IS DUE. 12
346	346
347	347	(B) A PERSON REQUIRED TO F ILE ESTIMATED DIGITA L SOCIAL MEDIA 13
348	348	GROSS REVENUES TAX R ETURNS UNDER § 7.7–201(B) OF THIS TITLE SHALL PAY: 14
349	349
350	350	(1) AT LEAST 25% OF THE ESTIMATED DIG ITAL SOCIAL MEDIA GR OSS 15
351	351	REVENUES TAX SHOWN O N THE DECLARATION OR AMENDED DECLARATION FOR A 16
352	352	TAXABLE YEAR : 17
353	353
354	354	(I) WITH THE DECLARATION OR AMENDED DECLARATI ON THAT 18
355	355	COVERS THE YEAR ; AND 19
356	356
357	357	(II) WITH EACH QUARTERLY RETURN FOR THAT YEAR; AND 20
358	358
359	359	(2) ANY UNPAID DIGITAL S OCIAL MEDIA GROSS RE VENUES TAX FOR 21
360	360	THE YEAR SHOWN ON TH E PERSON’S RETURN THAT COVERS THAT YEAR WITH THE 22
361	361	RETURN. 23
362	362
363	363	13–201. 24
364	364
365	365	In this subtitle, “tax information” means: 25
366	366
367	367	(4) any information contained in: 26
368	368
369	369	(i) an admissions and amusement tax return; 27
370	370
371	371	(ii) an alcoholic beverage tax return; 28
372	372	HOUSE BILL 414 9
373	373
374	374
375	375	(iii) a bay restoration fee return; 1
376	376
377	377	(iv) a boxing and wrestling tax return; 2
378	378
379	379	(v) a digital advertising gross revenues tax return; 3
380	380
381	381	(VI) A DIGITAL SOCIAL MED IA GROSS REVENUES TAX RETU RN; 4
382	382
383	383	[(vi)] (VII) an E–9–1–1 fee return; 5
384	384
385	385	[(vii)] (VIII) a financial institution franchise tax return; 6
386	386
387	387	[(viii)] (IX) an inheritance tax return; 7
388	388
389	389	[(ix)] (X) a Maryland estate tax return; 8
390	390
391	391	[(x)] (XI) a motor carrier tax return; 9
392	392
393	393	[(xi)] (XII) a motor fuel tax return; 10
394	394
395	395	[(xii)] (XIII) an other tobacco products tax return; 11
396	396
397	397	[(xiii)] (XIV) a public service company franchise tax return; 12
398	398
399	399	[(xiv)] (XV) a sales and use tax return; 13
400	400
401	401	[(xv)] (XVI) a savings and loan association franchise tax return; 14
402	402
403	403	[(xvi)] (XVII) a tire recycling fee return; 15
404	404
405	405	[(xvii)] (XVIII) a tobacco tax return; or 16
406	406
407	407	[(xviii)] (XIX) a transportation services assessment return. 17
408	408
409	409	13–402. 18
410	410
411	411	(a) If a notice and demand for a return is made under § 13–303 of this title and 19
412	412	the person or governmental unit fails to file the return, the tax collector shall: 20
413	413
414	414	(5) for public service company franchise tax: 21
415	415
416	416	(i) estimate gross receipts from the best information in the 22
417	417	possession of the tax collector; and 23
418	418
419	419	(ii) assess the tax due on the estimated gross receipts; [and] 24
420	420	10 HOUSE BILL 414
421	421
422	422
423	423	(6) for digital advertising gross revenues tax: 1
424	424
425	425	(i) estimate gross revenues from the best information in possession 2
426	426	of the tax collector; and 3
427	427
428	428	(ii) assess the tax due on the estimated assessable base; AND 4
429	429
430	430	(7) FOR DIGITAL SOCIAL M EDIA GROSS REVENUES TAX: 5
431	431
432	432	(I) ESTIMATE GROSS REVEN UES FROM THE BEST 6
433	433	INFORMATION IN POSSE SSION OF THE TAX COL LECTOR; AND 7
434	434
435	435	(II) ASSESS THE TAX DUE O N THE ESTIMATED ASSE SSABLE 8
436	436	BASE. 9
437	437
438	438	13–602. 10
439	439
440	440	(a) Except as provided in subsections (b) and (c) of this section, a tax collector 11
441	441	shall assess interest on unpaid tax from the due date to the date on which the tax is paid if 12
442	442	a person who is required to estimate and pay digital advertising gross revenues tax, 13
443	443	DIGITAL SOCIAL MEDIA GROSS REVENUES TAX , financial institution franchise tax, 14
444	444	public service company franchise tax, or income tax under § 7.5–301, § 7.7–301, § 8–210(b), 15
445	445	§ 8–405(b), or § 10–902 of this article: 16
446	446
447	447	(1) fails to pay an installment when due; or 17
448	448
449	449	(2) estimates a tax that is: 18
450	450
451	451	(i) less than 90% of the tax required to be shown on the return for 19
452	452	the current taxable year; and 20
453	453
454	454	(ii) less than 110% of the tax paid for the prior taxable year, reduced 21
455	455	by the credit allowed under § 10–703 of this article. 22
456	456
457	457	13–702. 23
458	458
459	459	(a) Except as provided in subsections (b) and (c) of this section, a tax collector 24
460	460	shall assess a penalty not exceeding 25% of the amount underestimated, if a person who is 25
461	461	required to estimate and pay digital advertising gross revenues tax, DIGITAL SOCIAL 26
462	462	MEDIA GROSS REVENUES TAX, financial institution franchise tax, public service company 27
463	463	franchise tax, or income tax under § 7.5–301, § 7.7–301, § 8–210(b), § 8–405(b), or § 28
464	464	10–902 of this article: 29
465	465
466	466	(1) fails to pay an installment when due; or 30
467	467
468	468	(2) estimates a tax that is: 31 HOUSE BILL 414 11
469	469
470	470
471	471
472	472	(i) less than 90% of the tax required to be shown on the return for 1
473	473	the current taxable year; and 2
474	474
475	475	(ii) less than 110% of the tax paid for the prior taxable year, reduced 3
476	476	by the credit allowed under § 10–703 of this article. 4
477	477
478	478	13–1001. 5
479	479
480	480	(H) A PERSON WHO IS REQUIR ED TO FILE A DIGITAL SOCIAL MEDIA GROSS 6
481	481	REVENUES TAX RETURN AND WHO WILLFULLY FA ILS TO FILE THE RETU RN AS 7
482	482	REQUIRED UNDER TITLE 7.7 OF THIS ARTICLE IS G UILTY OF A MISDEMEAN OR AND, 8
483	483	ON CONVICTION , IS SUBJECT TO A FINE NOT EXCEEDING $5,000 OR IMPRISONMENT 9
484	484	NOT EXCEEDING 5 YEARS OR BOTH . 10
485	485
486	486	13–1002. 11
487	487
488	488	(b) A person, including an officer of a corporation, who willfully files a false digital 12
489	489	advertising gross revenues tax return, A FALSE DIG ITAL SOCIAL MEDIA GR OSS 13
490	490	REVENUES TAX RETURN , a false financial institution franchise tax return, a false public 14
491	491	service company franchise tax return, or a false income tax return with the intent to evade 15
492	492	the payment of tax due under this article is guilty of perjury and, on conviction, is subject 16
493	493	to the penalty for perjury. 17
494	494
495	495	(c) Subsections (a) and (b) of this section apply to the alcoholic beverage, digital 18
496	496	advertising gross revenues, DIGITAL SOCIAL MEDIA GROSS REVENUES , financial 19
497	497	institution franchise, public service company franchise, and income taxes. 20
498	498
499	499	13–1101. 21
500	500
501	501	(b) An assessment of digital advertising gross revenues tax, DIGITAL SOCIAL 22
502	502	MEDIA GROSS REVENUES TAX, financial institution franchise tax, public service company 23
503	503	franchise tax, income tax, or estate tax may be made at any time if: 24
504	504
505	505	(1) a false return is filed with the intent to evade the tax; 25
506	506
507	507	(2) a willful attempt is made to evade the tax; 26
508	508
509	509	(3) a return is not filed as required under Title 7, Title 7.5, TITLE 7.7, Title 27
510	510	8, or Title 10 of this article; 28
511	511
512	512	(4) an amended estate tax return is not filed as required under Title 7 of 29
513	513	this article; 30
514	514
515	515	(5) an incomplete return is filed; or 31
516	516	12 HOUSE BILL 414
517	517
518	518
519	519	(6) a report of federal adjustment is not filed within the period required 1
520	520	under § 13–409 of this title. 2
521	521
522	522	(c) If a report of federal adjustment is filed within the time required under § 3
523	523	13–409 of this title, the tax collector shall assess the digital advertising gross revenues tax, 4
524	524	DIGITAL SOCIAL MEDIA GROSS REVENUES TAX , financial institution franchise tax, 5
525	525	public service company franchise tax, income tax, or estate tax within 1 year after the date 6
526	526	on which the tax collector receives the report. 7
527	527
528	528	SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 8
529	529	applicable to all taxable years beginning after December 31, 2025. 9
530	530
531	531	SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July 10
532	532	1, 2025. 11
533	533