EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
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amendment.
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*hb0698*
HOUSE BILL 698
L1, Q8 (5lr2975)
ENROLLED BILL
— Environment and Transportation/Budget and Taxation —
Introduced by Delegates Allen, Arentz, Bhandari, Boyce, Ebersole, Forbes, Guyton,
D. Jones, R. Lewis, Lopez, Nawrocki, Stein, Szeliga, and White Holland,
Ruth, and Stewart
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
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 Department of Planning on the amount and amount, use, and 5
location of the use of county development impact fees, surcharges, and excise taxes; 6
requiring county governments to make certain reports to the Department of Planning 7
identifying certain local laws; and generally relating to county reporting of 8
development impact fees, surcharges, and excise taxes. 9
BY adding to 10
Article – Local Government 11
Section 20–125 12 2 HOUSE BILL 698
Annotated Code of Maryland 1
(2013 Volume and 2024 Supplement) 2
Preamble 3
WHEREAS, Local governments in Maryland must have authority from the 4
Maryland General Assembly in order to impose a development impact fee or an excise tax; 5
and 6
WHEREAS, Code home rule counties are authorized collectively to impose specified 7
development impact fees and excise taxes, and many counties have specific authorizations 8
from the Maryland General Assembly; and 9
WHEREAS, Title 20, Subtitle 7 of the Local Government Article provides for the 10
specific uses of revenues received from development impact fees; and 11
WHEREAS, County Commissioners of code counties may impose development 12
impact fees by public local law to finance any of the capital costs of additional or expanded 13
public works improvements, and facilities required to accommodate new construction or 14
development; and 15
WHEREAS, The Supreme Court of the United States, in Sheetz v. County of El 16
Dorado, 601 U.S. ____ (2024), held that local government permit conditions (1) must have 17
an “essential nexus” to the government’s land use interests, and “rough proportionality” to 18
the development’s impact on the land use interest; and (2) may not require a landowner to 19
give up or pay more than is necessary to mitigate harms caused from new development; 20
now, therefore, 21
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBL Y OF MARYLAND, 22
That the Laws of Maryland read as follows: 23
Article – Local Government 24
20–125. 25
(A) THIS SECTION APPLIES ONLY TO A COUNTY THA T: 26
(1) IS A CHARTER COUNTY THAT IMPOSES , BY LAW, DEVELOPMENT 27
IMPACT FEES, SURCHARGES , OR EXCISE TAXES; 28
(2) IS A CODE COUNTY WIT H PUBLIC LOCAL LAWS THAT REQUIRE THE 29
PAYMENT OF DEVELOPME NT IMPACT FEES, SURCHARGES , OR EXCISE TAXES; OR 30
(3) IS A COMMISSION COUN TY THAT: 31
HOUSE BILL 698 3
(I) HAS BEEN AUTHORIZED TO ENACT DEVELOPMENT IMPACT 1
FEES, SURCHARGES , OR EXCISE TAXES; AND 2
(II) HAS ENACTED , BY LOCAL LAW , DEVELOPMENT IMPACT 3
FEES, SURCHARGES , OR EXCISE TAXES. 4
(B) ON OR BEFORE JULY 1 EACH YEAR, EACH COUNTY SHALL RE PORT TO 5
THE GOVERNOR AND THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF 6
THE STATE GOVERNMENT ARTICLE, DEPARTMENT OF PLANNING THE FOLLOWING 7
INFORMATION RELATING TO THE COLLECTION AN D EXPENDITURE OF 8
DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES FOR THE PRIOR 9
CALENDAR YEAR : 10
(1) THE TOTAL AMOUNT OF DEVELOPMENT IMPACT F EES, 11
SURCHARGES , OR EXCISE TAXES PAID TO THE COUNTY BY NEW CONSTRUCTION OR 12
DEVELOPMENT PROJECTS ; 13
(2) THE PORTION OF THE D EVELOPMENT IMPACT FE ES, 14
SURCHARGES , OR EXCISE TAXES PAID TO THE COUNTY BY LEG ISLATIVE, 15
COUNCILMANIC, OR COMMISSIONER DIST RICT IN WHICH THE CO NSTRUCTION OR 16
DEVELOPMENT PROJECT THAT IS SUBJECT TO T HE FEE, SURCHARGE , OR TAX IS 17
LOCATED; AND EACH DEVELOPMENT IMP ACT FEE, SURCHARGE , OR EXCISE TAX 18
IMPOSED BY THE COUNT Y; THE PORTION OF THE D EVELOPMENT IMP ACT FEES, 19
SURCHARGES , OR EXCISE TAXES PAID TO THE COUNTY ; 20
(3) THE ADDRESS AND LOCA TION OF THE DEVELOPM ENT WITHIN THE 21
COUNTY WHERE THE IMP ACT FEES, SURCHARGES , OR EXCISE TAXES WERE DERIVED; 22
AND 23
(3) THE FEE AMOUNTS , SURCHARGE RATES , TAX RATES , OR 24
FORMULAS THAT DETERM INE THE DEVELOPMENT IMPACT FEE, SURCHARGE , OR 25
EXCISE TAX IMPOSED B Y THE COUNTY ON A NE W CONSTRUCTION OR DE VELOPMENT 26
PROJECT; 27
(4) THE TOTAL AMOUNT COL LECTED BY THE COUNTY FOR EACH 28
DEVELOPMENT IMPACT F EE, SURCHARGE , OR EXCISE TAX; 29
(3) (5) (4) EXCEPT AS PROVIDED B Y SUBSECTION (C) OF THIS SECTION, 30
EXCEPT AS PROVIDED B Y SUBSECTION (C) OF THIS SECTION , THE PORTION OF 31
DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES USED BY THE 32
COUNTY TO FUND CAPITAL IMPR OVEMENT PROJECTS THAT ARE IN THE 33
LEGISLATIVE, COUNCILMANIC , OR COMMISSIONER DISTRIC T THAT ARE RELATED TO 34
TRANSPORTATION IMPRO VEMENTS OR MAINTENAN CE, SCHOOL CONSTRUCTION OR 35
MAINTENANCE , OR ANY OTHER CAPITAL IMPROVEMENT PROJECT THAT RECEIVED 36 4 HOUSE BILL 698
FUNDING FROM DEVELOP MENT IMPACT FEES , SURCHARGES, OR EXCISE TAXES ; 1
AND. 2
(6) THE LOCAL LAWS OR OR DINANCES OF THE COUN TY THAT PROVIDE 3
FOR THE COLLECTION O F DEVELOPMENT IMPACT FEES, SURCHARGES , OR EXCISE 4
TAXES. 5
(C) IF THE FUNDING UNDER SUBSECTION (B)(4) OF THIS SECTION IS 6
COLLECTED UNDER SUBTITLE 8 OF THIS TITLE, THE REPORT MAY EXCLU DE THE 7
INFORMATION OTHERWIS E REQUIRED UNDER SUB SECTION (B)(4) OF THIS SECTION. 8
(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A COUNTY 9
SHALL MAKE THE REPOR T PUBLICLY AVAILABLE ON THE COUNTY ’S WEBSITE. 10
(2) A COUNTY THAT DOES NOT MAINTAIN A WEBSITE S HALL MAKE THE 11
REPORT PUBLICLY AVAI LABLE BY OTHER REASO NABLE MEANS . 12
(3) A COUNTY MAY SUBMIT TH E REPORT AS PART OF ANOTHER 13
REPORT REQUIRED UNDER THIS A RTICLE. 14
(E) (1) ON OR BEFORE JULY 1, 2026, EACH COUNTY SHALL SU BMIT A 15
REPORT TO THE DEPARTMENT OF PLANNING THAT IDENTIF IES ANY LOCAL LAW 16
THAT AUTHORIZES THE COLLECTION AND EXPEN DITURE OF DEVELOPMEN T IMPACT 17
FEES, SURCHARGES , OR EXCISE TAXES. 18
(2) AFTER JULY 1, 2026, EACH COUNTY SHALL SU BMIT A REPORT TO 19
THE DEPARTMENT OF PLANNING EACH TIME TH E COUNTY ENACTS OR A MENDS A 20
LOCAL LAW THAT AUTHO RIZES THE COLLECTION AND EXPENDITURE OF 21
DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES . IF THE FUNDING 22
UNDER SUBSECTION (B)(3) OF THIS SECTION IS COLLECTED UNDER SUBTITLE 8 OF 23
THIS TITLE, THE REPORT MAY EXCLU DE THE INFORMATION OTHERWIS E REQUIRED 24
UNDER SUBSECTION (B)(3) OF THIS SECTION. 25
(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A EACH 26
COUNTY SHALL MAKE TH E REPORT PUBLICLY AV AILABLE ON THE COUNT Y’S 27
WEBSITE. 28
(2) A COUNTY THAT DOES NOT MAINTAIN A WEBSITE S HALL MAKE 29
THE REPORT PUBLICLY AVAILABLE BY OTHER R EASONABLE MEANS . 30
(3) A COUNTY MAY SUBMIT TH E REPORT AS PART OF ANOTHER 31
REPORT REQUIRED UNDER THIS ARTICLE. 32
HOUSE BILL 698 5
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.