EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0698*
HOUSE BILL 698
L1, Q8 5lr2975
CF 5lr3190
By: Delegates Allen, Arentz, Bhandari, Boyce, Ebersole, Forbes, Guyton, D. Jones,
R. Lewis, Lopez, Nawrocki, Stein, Szeliga, and White Holland
Introduced and read first time: January 24, 2025
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Local Government – Development Impact Fees, Surcharges, and Excise Taxes – 2
Reporting 3
FOR the purpose of requiring county governments to make a certain report to the Governor 4
and General Assembly on the amount and use of county development impact fees, 5
surcharges, and excise taxes; and generally relating to county reporting of 6
development impact fees, surcharges, and excise taxes. 7
BY adding to 8
Article – Local Government 9
Section 20–125 10
Annotated Code of Maryland 11
(2013 Volume and 2024 Supplement) 12
Preamble 13
WHEREAS, Local governments in Maryland must have authority from the 14
Maryland General Assembly in order to impose a development impact fee or an excise tax; 15
and 16
WHEREAS, Code home rule counties are authorized collectively to impose specified 17
development impact fees and excise taxes, and many counties have specific authorizations 18
from the Maryland General Assembly; and 19
WHEREAS, Title 20, Subtitle 7 of the Local Government Article provides for the 20
specific uses of revenues received from development impact fees; and 21
WHEREAS, County Commissioners of code counties may impose develop ment 22
impact fees by public local law to finance any of the capital costs of additional or expanded 23 2 HOUSE BILL 698
public works improvements, and facilities required to accommodate new construction or 1
development; and 2
WHEREAS, The Supreme Court of the United States, in Sheetz v. County of El 3
Dorado, 601 U.S. ____ (2024), held that local government permit conditions (1) must have 4
an “essential nexus” to the government’s land use interests, and “rough proportionality” to 5
the development’s impact on the land use interest; and (2) may not require a landowner to 6
give up or pay more than is necessary to mitigate harms caused from new development; 7
now, therefore, 8
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That the Laws of Maryland read as follows: 10
Article – Local Government 11
20–125. 12
(A) THIS SECTION APPLIES ONLY TO A COUNTY THAT : 13
(1) IS A CHARTER COUNTY THAT IMPOSES, BY LAW, DEVELOPMENT 14
FEES, SURCHARGES , OR EXCISE TAXES; 15
(2) IS A CODE COUNTY WITH PUBLIC LOCAL LA WS THAT REQUIRE THE 16
PAYMENT OF DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES; OR 17
(3) IS A COMMISSION COUNTY THAT: 18
(I) HAS BEEN AUTHORIZED TO ENACT DEVELOPMENT IMPACT 19
FEES, SURCHARGES , OR EXCISE TAXES; AND 20
(II) HAS ENACTED , BY LOCAL LAW , DEVELOPMENT IMPACT 21
FEES, SURCHARGES , OR EXCISE TAXES. 22
(B) ON OR BEFORE JULY 1 EACH YEAR, EACH COUNTY SHALL REPORT TO 23
THE GOVERNOR AND THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF 24
THE STATE GOVERNMENT ARTICLE, THE FOLLOWING INFORM ATION RELATING TO 25
THE COLLECTION AND E XPENDITURE OF DEVELOPMEN T IMPACT FEES , 26
SURCHARGES , OR EXCISE TAXES FOR THE PRIOR CALENDAR Y EAR: 27
(1) THE TOTAL AMOUNT OF DEVELOPMENT IMPACT FEES , 28
SURCHARGES , OR EXCISE TAXES PAID BY NEW CONSTRUCTION OR DEVELOPMENT 29
PROJECTS; 30
HOUSE BILL 698 3
(2) THE PORTION OF THE D EVELOPMENT IMPACT FE ES, 1
SURCHARGES , OR EXCISE TAXES PAID TO THE COUNTY BY LEGISL ATIVE, 2
COUNCILMANIC , OR COMMISSIONER DIST RICT IN WHICH THE CO NSTRUCTION OR 3
DEVELOPMENT PROJECT THAT IS SUBJECT TO THE FEE , SURCHARGE , OR TAX IS 4
LOCATED; AND 5
(3) EXCEPT AS PROVIDED B Y SUBSECTION (C) OF THIS SECTION, THE 6
PORTION OF DEVELOPME NT IMPACT FEES, SURCHARGES , OR EXCISE TAXES USED TO 7
FUND CAPITAL IMPROVE MENT PROJECTS IN THE LEGISLATIVE, COUNCILMANIC , OR 8
COMMISSIONER DISTRIC T THAT ARE RELATED TO TRANSPORTATION 9
IMPROVEMENTS OR MAINTEN ANCE, SCHOOL CONSTRUCTION OR MAINTENANCE , OR 10
ANY OTHER CAPITAL IM PROVEMENT PROJECT TH AT RECEIVED FUNDING FROM 11
DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES. 12
(C) IF THE FUNDING UNDER SUBSECTION (B)(3) OF THIS SECTION IS 13
COLLECTED UNDER SUBTITLE 8 OF THIS TITLE, THE REPORT MAY EXCLUDE T HE 14
INFORMATION OTHERWIS E REQUIRED UNDER SUBSECTION (B)(3) OF THIS SECTION. 15
(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A COUNTY 16
SHALL MAKE THE REPOR T PUBLICLY AVAILABLE ON THE COUN TY’S WEBSITE. 17
(2) A COUNTY THAT DOES NOT MAINTAIN A WEBSITE S HALL MAKE 18
THE REPORT PUB LICLY AVAILABLE BY OT HER REASONABLE MEANS . 19
(3) A COUNTY MAY SUBMIT TH E REPORT AS PART OF ANOTHER 20
REPORT REQUIRED UNDE R THIS ARTICLE. 21
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 22
October 1, 2025. 23