Maryland 2025 Regular Session

Maryland House Bill HB698 Compare Versions

Version 1 (Old)

Version 2 (New)

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		Underlining indicates amendments to bill.
6	6		Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7	7		amendment.
8		-	Italics indicate opposite chamber/conference committee amendments.
9	8		hb0698
10	9
11	10		HOUSE BILL 698
12		-	L1, Q8 (5lr2975)
13		-	ENROLLED BILL
14		-	— Environment and Transportation/Budget and Taxation —
15		-	Introduced by Delegates Allen, Arentz, Bhandari, Boyce, Ebersole, Forbes, Guyton,
16		-	D. Jones, R. Lewis, Lopez, Nawrocki, Stein, Szeliga, and White Holland,
17		-	Ruth, and Stewart
18		-
19		-	Read and Examined by Proofreaders:
20		-
21		-	_______________________________________________
22		-	Proofreader.
23		-	_______________________________________________
24		-	Proofreader.
25		-
26		-	Sealed with the Great Seal and presented to the Governor, for his approval this
27		-
28		-	_______ day of _______________ at ________________________ o’clock, ________M.
29		-
30		-	______________________________________________
31		-	Speaker.
	11	+	L1, Q8 5lr2975
	12	+	CF SB 814
	13	+	By: Delegates Allen, Arentz, Bhandari, Boyce, Ebersole, Forbes, Guyton, D. Jones,
	14	+	R. Lewis, Lopez, Nawrocki, Stein, Szeliga, and White Holland, Ruth, and
	15	+	Stewart
	16	+	Introduced and read first time: January 24, 2025
	17	+	Assigned to: Environment and Transportation
	18	+	Committee Report: Favorable with amendments
	19	+	House action: Adopted
	20	+	Read second time: February 25, 2025
32	21
33	22		CHAPTER ______
34	23
35	24		AN ACT concerning 1
36	25
37	26		Local Government – Development Impact Fees, Surcharges, and Excise Taxes – 2
38	27		Reporting 3
39	28
40	29		FOR the purpose of requiring county governments to make a certain report to the Governor 4
41		-	and General Assembly Department of Planning on the amount and amount, use, and 5
42		-	location of the use of county development impact fees, surcharges, and excise taxes; 6
43		-	requiring county governments to make certain reports to the Department of Planning 7
44		-	identifying certain local laws; and generally relating to county reporting of 8
45		-	development impact fees, surcharges, and excise taxes. 9
	30	+	and General Assembly on the amount and use of county development impact fees, 5
	31	+	surcharges, and excise taxes; and generally relating to county reporting of 6
	32	+	development impact fees, surcharges, and excise taxes. 7
46	33
47		-	BY adding to 10
48		-	Article – Local Government 11
49		-	Section 20–125 12 2 HOUSE BILL 698
	34	+	BY adding to 8
	35	+	Article – Local Government 9
	36	+	Section 20–125 10
	37	+	Annotated Code of Maryland 11
	38	+	(2013 Volume and 2024 Supplement) 12
	39	+
	40	+	Preamble 13
	41	+
	42	+	WHEREAS, Local governments in Maryland must have authority from the 14
	43	+	Maryland General Assembly in order to impose a development impact fee or an excise tax; 15
	44	+	and 16
	45	+
	46	+	WHEREAS, Code home rule counties are authorized collectively to impose specified 17
	47	+	development impact fees and excise taxes, and many counties have specific authorizations 18
	48	+	from the Maryland General Assembly; and 19 2 HOUSE BILL 698
50	49
51	50
52		-	Annotated Code of Maryland 1
53		-	(2013 Volume and 2024 Supplement) 2
54	51
55		-	Preamble 3
	52	+	WHEREAS, Title 20, Subtitle 7 of the Local Government Article provides for the 1
	53	+	specific uses of revenues received from development impact fees; and 2
56	54
57		-	WHEREAS, Local governments in Maryland must have authority from the 4
58		-	Maryland General Assembly in order to impose a development impact fee or an excise tax; 5
59		-	and 6
	55	+	WHEREAS, County Commissioners of code counties may impose develo pment 3
	56	+	impact fees by public local law to finance any of the capital costs of additional or expanded 4
	57	+	public works improvements, and facilities required to accommodate new construction or 5
	58	+	development; and 6
60	59
61		-	WHEREAS, Code home rule counties are authorized collectively to impose specified 7
62		-	development impact fees and excise taxes, and many counties have specific authorizations 8
63		-	from the Maryland General Assembly; and 9
	60	+	WHEREAS, The Supreme Court of the United States, in Sheetz v. County of El 7
	61	+	Dorado, 601 U.S. ____ (2024), held that local government permit conditions (1) must have 8
	62	+	an “essential nexus” to the government’s land use interests, and “rough proportionality” to 9
	63	+	the development’s impact on the land use interest; and (2) may not require a landowner to 10
	64	+	give up or pay more than is necessary to mitigate harms caused from new development; 11
	65	+	now, therefore, 12
64	66
65		-	~~WHEREAS, Title 20,~~ ~~Subtitle 7~~ of ~~the Local Government Article provides for the 10~~
66		-	~~specific uses~~ of ~~revenues received from development impact fees; and 11~~
	67	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
	68	+	That the Laws of Maryland read as follows: 14
67	69
68		-	WHEREAS, County Commissioners of code counties may impose development 12
69		-	impact fees by public local law to finance any of the capital costs of additional or expanded 13
70		-	public works improvements, and facilities required to accommodate new construction or 14
71		-	development; and 15
	70	+	Article – Local Government 15
72	71
73		-	WHEREAS, The Supreme Court of the United States, in Sheetz v. County of El 16
74		-	Dorado, 601 U.S. ____ (2024), held that local government permit conditions (1) must have 17
75		-	an “essential nexus” to the government’s land use interests, and “rough proportionality” to 18
76		-	the development’s impact on the land use interest; and (2) may not require a landowner to 19
77		-	give up or pay more than is necessary to mitigate harms caused from new development; 20
78		-	now, therefore, 21
	72	+	20–125. 16
79	73
80		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBL Y OF MARYLAND, 22
81		-	That the Laws of Maryland read as follows: 23
	74	+	(A) THIS SECTION APPLIES ONLY TO A COUNTY THA T: 17
82	75
83		-	Article – Local Government 24
	76	+	(1) IS A CHARTER COUNTY THAT IMPOSES , BY LAW, DEVELOPMENT 18
	77	+	IMPACT FEES, SURCHARGES , OR EXCISE TAXES; 19
84	78
85		-	20–125. 25
	79	+	(2) IS A CODE COUNTY WIT H PUBLIC LOCAL LAWS THAT REQUIRE THE 20
	80	+	PAYMENT OF DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES; OR 21
86	81
87		-	(A) ~~THIS SECTION APPLIES ONLY TO~~ A ~~COUNTY THA T~~: 26
	82	+	(3) IS A COMMISSION COUN TY THAT: 22
88	83
89		-	(1) ~~IS A CHARTER COUNTY THAT IMPOSES , BY LAW,~~ DEVELOPMENT 27
90		-	~~IMPACT~~ FEES, SURCHARGES , OR EXCISE TAXES; 28
	84	+	(I) HAS BEEN AUTHORIZED TO ENACT DEVELOPMENT IMPACT 23
	85	+	FEES, SURCHARGES , OR EXCISE TAXES; AND 24
91	86
92		-	(2) ~~IS A CODE COUNTY WIT H PUBLIC~~ LOCAL ~~LAWS THAT REQUIRE THE 29~~
93		-	~~PAYMENT OF DEVELOPME NT IMPACT~~ FEES, SURCHARGES , OR EXCISE TAXES~~; OR 30~~
	87	+	(II) HAS ENACTED , BY LOCAL LAW , DEVELOPMENT IMPACT 25
	88	+	FEES, SURCHARGES , OR EXCISE TAXES. 26
94	89
95		-	(3) IS A COMMISSION COUN TY THAT: 31
	90	+	(B) ON OR BEFORE JULY 1 EACH YEAR, EACH COUNTY SHALL RE PORT TO 27
	91	+	THE GOVERNOR AND THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF 28
	92	+	THE STATE GOVERNMENT ARTICLE, THE FOLLOWING INFORM ATION RELATING TO 29
	93	+	THE COLLECTION AND EXPENDITURE OF DEVEL OPMENT IMPACT FEES , 30
	94	+	SURCHARGES , OR EXCISE TAXES FOR THE PRIOR CALENDAR Y EAR: 31
96	95		HOUSE BILL 698 3
97	96
98	97
99		-	(I) HAS BEEN AUTHORIZED TO ENACT DEVELOPMENT IMPACT 1
100		-	FEES, SURCHARGES , OR EXCISE TAXES; AND 2
	98	+	(1) THE TOTAL AMOUNT OF DEVELOPMENT IMPACT F EES, 1
	99	+	SURCHARGES , OR EXCISE TAXES PAID TO THE COUNTY BY NEW CONSTRUCTION OR 2
	100	+	DEVELOPMENT PROJECTS ; 3
101	101
102		-	(II) HAS ENACTED , BY LOCAL LAW , DEVELOPMENT IMPACT 3
103		-	FEES, SURCHARGES , OR EXCISE TAXES. 4
	102	+	(2) THE PORT ION OF THE DEVELOPME NT IMPACT FEES , 4
	103	+	SURCHARGES , OR EXCISE TAXES PAID TO THE COUNTY BY LEG ISLATIVE, 5
	104	+	COUNCILMANIC , OR COMMISSIONER DIST RICT IN WHICH THE CO NSTRUCTION OR 6
	105	+	DEVELOPMENT PROJECT THAT IS SUBJECT TO T HE FEE, SURCHARGE , OR TAX IS 7
	106	+	LOCATED; AND EACH DEVELOPMENT IMPACT FEE , SURCHARGE , OR EXCISE TAX 8
	107	+	IMPOSED BY THE COUNT Y; 9
104	108
105		-	(B) ON OR BEFORE JULY 1 EACH YEAR, EACH COUNTY SHALL RE PORT TO 5
106		-	THE GOVERNOR AND THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF 6
107		-	THE STATE GOVERNMENT ARTICLE, DEPARTMENT OF PLANNING THE FOLLOWING 7
108		-	INFORMATION RELATING TO THE COLLECTION AN D EXPENDITURE OF 8
109		-	DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES FOR THE PRIOR 9
110		-	CALENDAR YEAR : 10
	109	+	(3) THE FEE AMOUNTS , SURCHARGE RATES , TAX RATES , OR 10
	110	+	FORMULAS THAT DETERM INE THE DEVELOPMENT IMPACT FEE, SURCHARGE , OR 11
	111	+	EXCISE TAX IMPOSED B Y THE COUNTY ON A NE W CONSTRUCTION OR DE VELOPMENT 12
	112	+	PROJECT; 13
111	113
112		-	(1) THE TOTAL AMOUNT OF DEVELOPMENT IMPACT F EES, 11
113		-	SURCHARGES , OR EXCISE TAXES PAID TO THE COUNTY BY NEW CONSTRUCTION OR 12
114		-	DEVELOPMENT PROJECTS ; 13
	114	+	(4) THE TOTAL AMOUNT COL LECTED BY THE COUNTY FOR EACH 14
	115	+	DEVELOPMENT IMPACT F EE, SURCHARGE , OR EXCISE TAX; 15
115	116
116		-	(2) ~~THE PORTION~~ OF ~~THE D EVELOPMENT IMPACT FE ES~~, 14
117		-	SURCHARGES , OR EXCISE TAXES ~~PAID TO THE COUNTY BY LEG ISLATIVE, 15~~
118		-	~~COUNCILMANIC, OR COMMISSIONER DIST RICT~~ IN ~~WHICH~~ THE ~~CO NSTRUCTION OR 16~~
119		-	~~DEVELOPMENT PROJECT THAT IS SUBJECT TO T HE FEE~~, ~~SURCHARGE~~ , OR ~~TAX IS 17~~
120		-	~~LOCATED; AND EACH DEVELOPMENT IMP ACT FEE, SURCHARGE ,~~ OR ~~EXCISE TAX 18~~
121		-	~~IMPOSED BY THE COUNT Y; THE PORTION OF THE D EVELOPMENT IMP ACT FEES~~, 19
122		-	SURCHARGES , OR EXCISE TAXES ~~PAID TO THE COUNTY~~ ; 20
	117	+	(3) (5) EXCEPT AS PROVIDED B Y SUBSECTION (C) OF THIS SECTION, 16
	118	+	THE PORTION OF DEVEL OPMENT IMPACT FEES , SURCHARGES , OR EXCISE TAXES 17
	119	+	USED BY THE COUNTY TO FUND CAPITAL IMPR OVEMENT PROJECTS IN THE 18
	120	+	LEGISLATIVE, COUNCILMANIC , OR COMMISSIONER DISTRIC T THAT ARE RELATED TO 19
	121	+	TRANSPORTATION IMPRO VEMENTS OR MAINTENAN CE, SCHOOL CONSTRUCTION OR 20
	122	+	MAINTENANCE , OR ANY OTHER CAPITAL IMPROVEMENT PROJECT THAT RECEIVED 21
	123	+	FUNDING FROM DEVELOP MENT IMPACT FEES , SURCHARGES , OR EXCISE TAXES; AND 22
123	124
124		-	(3) THE ~~ADDRESS AND LOCA TION~~ OF THE ~~DEVELOPM ENT WITHIN THE 21~~
125		-	~~COUNTY WHERE~~ THE ~~IMP ACT~~ FEES, SURCHARGES , OR EXCISE ~~TAXES WERE DERIVED; 22~~
126		-	~~AND 23~~
	125	+	(6) THE LOCAL LAWS OR OR DINANCES OF THE COUN TY THAT PROVIDE 23
	126	+	FOR THE COLLECTION O F DEVELOPMENT IMPAC T FEES, SURCHARGES , OR EXCISE 24
	127	+	TAXES. 25
127	128
128		-	(3) THE FEE AMOUNTS , SURCHARGE RATES , TAX RATES , OR 24
129		-	FORMULAS THAT DETERM INE THE DEVELOPMENT IMPACT FEE, SURCHARGE , OR 25
130		-	EXCISE TAX IMPOSED B Y THE COUNTY ON A NE W CONSTRUCTION OR DE VELOPMENT 26
131		-	PROJECT; 27
	129	+	(C) IF THE FUNDING UNDER SUBSECTION (B)(3) OF THIS SECTION IS 26
	130	+	COLLECTED UNDER SUBTITLE 8 OF THIS TITLE, THE REPORT MAY EXCLU DE THE 27
	131	+	INFORMATION OTHERWIS E REQUIRED UNDER SUB SECTION (B)(3) OF THIS SECTION. 28
132	132
133		-	(4) THE TOTAL AMOUNT COL LECTED BY THE COUNTY FOR EACH 28
134		-	DEVELOPMENT IMPACT F EE, SURCHARGE , OR EXCISE TAX; 29
	133	+	(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A EACH 29
	134	+	COUNTY SHALL MAKE TH E REPORT PUBLICLY AV AILABLE ON THE COUNT Y’S 30
	135	+	WEBSITE. 31
135	136
136		-	(3) (5) (4) EXCEPT AS PROVIDED B Y SUBSECTION (C) OF THIS SECTION, 30
137		-	EXCEPT AS PROVIDED B Y SUBSECTION (C) OF THIS SECTION , THE PORTION OF 31
138		-	DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES USED BY THE 32
139		-	COUNTY TO FUND CAPITAL IMPR OVEMENT PROJECTS THAT ARE IN THE 33
140		-	LEGISLATIVE, COUNCILMANIC , OR COMMISSIONER DISTRIC T THAT ARE RELATED TO 34
141		-	TRANSPORTATION IMPRO VEMENTS OR MAINTENAN CE, SCHOOL CONSTRUCTION OR 35
142		-	MAINTENANCE , OR ANY OTHER CAPITAL IMPROVEMENT PROJECT THAT RECEIVED 36 4 HOUSE BILL 698
	137	+	(2) A COUNTY THAT DOES NOT MAINTAIN A WEBSITE S HALL MAKE 32
	138	+	THE REPORT PUBLICLY AVAILABLE BY OTHER R EASONABLE MEANS . 33
143	139
	140	+	(3) A COUNTY MAY SUBMIT THE REP ORT AS PART OF ANOTH ER 34
	141	+	REPORT REQUIRED UNDE R THIS ARTICLE. 35 4 HOUSE BILL 698
144	142
145		-	FUNDING FROM DEVELOP MENT IMPACT FEES , SURCHARGES, OR EXCISE TAXES ; 1
146		-	AND. 2
147		-
148		-	(6) THE LOCAL LAWS OR OR DINANCES OF THE COUN TY THAT PROVIDE 3
149		-	FOR THE COLLECTION O F DEVELOPMENT IMPACT FEES, SURCHARGES , OR EXCISE 4
150		-	TAXES. 5
151		-
152		-	(C) IF THE FUNDING UNDER SUBSECTION (B)(4) OF THIS SECTION IS 6
153		-	COLLECTED UNDER SUBTITLE 8 OF THIS TITLE, THE REPORT MAY EXCLU DE THE 7
154		-	INFORMATION OTHERWIS E REQUIRED UNDER SUB SECTION (B)(4) OF THIS SECTION. 8
155		-
156		-	(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A COUNTY 9
157		-	SHALL MAKE THE REPOR T PUBLICLY AVAILABLE ON THE COUNTY ’S WEBSITE. 10
158		-
159		-	(2) A COUNTY THAT DOES NOT MAINTAIN A WEBSITE S HALL MAKE THE 11
160		-	REPORT PUBLICLY AVAI LABLE BY OTHER REASO NABLE MEANS . 12
161		-
162		-	(3) A COUNTY MAY SUBMIT TH E REPORT AS PART OF ANOTHER 13
163		-	REPORT REQUIRED UNDER THIS A RTICLE. 14
164		-
165		-	(E) (1) ON OR BEFORE JULY 1, 2026, EACH COUNTY SHALL SU BMIT A 15
166		-	REPORT TO THE DEPARTMENT OF PLANNING THAT IDENTIF IES ANY LOCAL LAW 16
167		-	THAT AUTHORIZES THE COLLECTION AND EXPEN DITURE OF DEVELOPMEN T IMPACT 17
168		-	FEES, SURCHARGES , OR EXCISE TAXES. 18
169		-
170		-	(2) AFTER JULY 1, 2026, EACH COUNTY SHALL SU BMIT A REPORT TO 19
171		-	THE DEPARTMENT OF PLANNING EACH TIME TH E COUNTY ENACTS OR A MENDS A 20
172		-	LOCAL LAW THAT AUTHO RIZES THE COLLECTION AND EXPENDITURE OF 21
173		-	DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES . IF THE FUNDING 22
174		-	UNDER SUBSECTION (B)(3) OF THIS SECTION IS COLLECTED UNDER SUBTITLE 8 OF 23
175		-	THIS TITLE, THE REPORT MAY EXCLU DE THE INFORMATION OTHERWIS E REQUIRED 24
176		-	UNDER SUBSECTION (B)(3) OF THIS SECTION. 25
177		-
178		-	(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A EACH 26
179		-	COUNTY SHALL MAKE TH E REPORT PUBLICLY AV AILABLE ON THE COUNT Y’S 27
180		-	WEBSITE. 28
181		-
182		-	(2) A COUNTY THAT DOES NOT MAINTAIN A WEBSITE S HALL MAKE 29
183		-	THE REPORT PUBLICLY AVAILABLE BY OTHER R EASONABLE MEANS . 30
184		-
185		-	(3) A COUNTY MAY SUBMIT TH E REPORT AS PART OF ANOTHER 31
186		-	REPORT REQUIRED UNDER THIS ARTICLE. 32
187		-	HOUSE BILL 698 5
188	143
189	144
190	145		SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
191	146		October 1, 2025. 2
192	147
193	148
194	149
195	150
196	151		Approved:
197	152		________________________________________________________________________________
198	153		Governor.
199	154		________________________________________________________________________________
200	155		Speaker of the House of Delegates.
201	156		________________________________________________________________________________
202	157		President of the Senate.