EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0698*
HOUSE BILL 698
L1, Q8 5lr2975
CF SB 814
By: Delegates Allen, Arentz, Bhandari, Boyce, Ebersole, Forbes, Guyton, D. Jones,
R. Lewis, Lopez, Nawrocki, Stein, Szeliga, and White Holland, Ruth, and
Stewart
Introduced and read first time: January 24, 2025
Assigned to: Environment and Transportation
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 25, 2025
CHAPTER ______
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 2 HOUSE BILL 698
WHEREAS, Title 20, Subtitle 7 of the Local Government Article provides for the 1
specific uses of revenues received from development impact fees; and 2
WHEREAS, County Commissioners of code counties may impose develo pment 3
impact fees by public local law to finance any of the capital costs of additional or expanded 4
public works improvements, and facilities required to accommodate new construction or 5
development; and 6
WHEREAS, The Supreme Court of the United States, in Sheetz v. County of El 7
Dorado, 601 U.S. ____ (2024), held that local government permit conditions (1) must have 8
an “essential nexus” to the government’s land use interests, and “rough proportionality” to 9
the development’s impact on the land use interest; and (2) may not require a landowner to 10
give up or pay more than is necessary to mitigate harms caused from new development; 11
now, therefore, 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
20–125. 16
(A) THIS SECTION APPLIES ONLY TO A COUNTY THA T: 17
(1) IS A CHARTER COUNTY THAT IMPOSES , BY LAW, DEVELOPMENT 18
IMPACT FEES, SURCHARGES , OR EXCISE TAXES; 19
(2) IS A CODE COUNTY WIT H PUBLIC LOCAL LAWS THAT REQUIRE THE 20
PAYMENT OF DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES; OR 21
(3) IS A COMMISSION COUN TY THAT: 22
(I) HAS BEEN AUTHORIZED TO ENACT DEVELOPMENT IMPACT 23
FEES, SURCHARGES , OR EXCISE TAXES; AND 24
(II) HAS ENACTED , BY LOCAL LAW , DEVELOPMENT IMPACT 25
FEES, SURCHARGES , OR EXCISE TAXES. 26
(B) ON OR BEFORE JULY 1 EACH YEAR, EACH COUNTY SHALL RE PORT TO 27
THE GOVERNOR AND THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF 28
THE STATE GOVERNMENT ARTICLE, THE FOLLOWING INFORM ATION RELATING TO 29
THE COLLECTION AND EXPENDITURE OF DEVEL OPMENT IMPACT FEES , 30
SURCHARGES , OR EXCISE TAXES FOR THE PRIOR CALENDAR Y EAR: 31
HOUSE BILL 698 3
(1) THE TOTAL AMOUNT OF DEVELOPMENT IMPACT F EES, 1
SURCHARGES , OR EXCISE TAXES PAID TO THE COUNTY BY NEW CONSTRUCTION OR 2
DEVELOPMENT PROJECTS ; 3
(2) THE PORT ION OF THE DEVELOPME NT IMPACT FEES , 4
SURCHARGES , OR EXCISE TAXES PAID TO THE COUNTY BY LEG ISLATIVE, 5
COUNCILMANIC , OR COMMISSIONER DIST RICT IN WHICH THE CO NSTRUCTION OR 6
DEVELOPMENT PROJECT THAT IS SUBJECT TO T HE FEE, SURCHARGE , OR TAX IS 7
LOCATED; AND EACH DEVELOPMENT IMPACT FEE , SURCHARGE , OR EXCISE TAX 8
IMPOSED BY THE COUNT Y; 9
(3) THE FEE AMOUNTS , SURCHARGE RATES , TAX RATES , OR 10
FORMULAS THAT DETERM INE THE DEVELOPMENT IMPACT FEE, SURCHARGE , OR 11
EXCISE TAX IMPOSED B Y THE COUNTY ON A NE W CONSTRUCTION OR DE VELOPMENT 12
PROJECT; 13
(4) THE TOTAL AMOUNT COL LECTED BY THE COUNTY FOR EACH 14
DEVELOPMENT IMPACT F EE, SURCHARGE , OR EXCISE TAX; 15
(3) (5) EXCEPT AS PROVIDED B Y SUBSECTION (C) OF THIS SECTION, 16
THE PORTION OF DEVEL OPMENT IMPACT FEES , SURCHARGES , OR EXCISE TAXES 17
USED BY THE COUNTY TO FUND CAPITAL IMPR OVEMENT PROJECTS IN THE 18
LEGISLATIVE, COUNCILMANIC , OR COMMISSIONER DISTRIC T THAT ARE RELATED TO 19
TRANSPORTATION IMPRO VEMENTS OR MAINTENAN CE, SCHOOL CONSTRUCTION OR 20
MAINTENANCE , OR ANY OTHER CAPITAL IMPROVEMENT PROJECT THAT RECEIVED 21
FUNDING FROM DEVELOP MENT IMPACT FEES , SURCHARGES , OR EXCISE TAXES; AND 22
(6) THE LOCAL LAWS OR OR DINANCES OF THE COUN TY THAT PROVIDE 23
FOR THE COLLECTION O F DEVELOPMENT IMPAC T FEES, SURCHARGES , OR EXCISE 24
TAXES. 25
(C) IF THE FUNDING UNDER SUBSECTION (B)(3) OF THIS SECTION IS 26
COLLECTED UNDER SUBTITLE 8 OF THIS TITLE, THE REPORT MAY EXCLU DE THE 27
INFORMATION OTHERWIS E REQUIRED UNDER SUB SECTION (B)(3) OF THIS SECTION. 28
(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A EACH 29
COUNTY SHALL MAKE TH E REPORT PUBLICLY AV AILABLE ON THE COUNT Y’S 30
WEBSITE. 31
(2) A COUNTY THAT DOES NOT MAINTAIN A WEBSITE S HALL MAKE 32
THE REPORT PUBLICLY AVAILABLE BY OTHER R EASONABLE MEANS . 33
(3) A COUNTY MAY SUBMIT THE REP ORT AS PART OF ANOTH ER 34
REPORT REQUIRED UNDE R THIS ARTICLE. 35 4 HOUSE BILL 698
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
October 1, 2025. 2
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.