Maryland 2025 Regular Session

Maryland Senate Bill SB1037 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	sb1037
6	6
7	7	SENATE BILL 1037
8	8	Q8 5lr3579
9	9	CF HB 1508
10	10	By: Baltimore City Senators
11	11	Introduced and read first time: February 10, 2025
12	12	Assigned to: Rules
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Baltimore City – Sales Tax – Authorization 2
19	19
20	20	FOR the purpose of authorizing the Mayor and City Council of Baltimore City to impose, 3
21	21	by law, a tax on retail sales in the City of Baltimore, subject to certain limitations; 4
22	22	and generally relating to authority for Baltimore City to impose a tax on retail sales 5
23	23	in the City of Baltimore. 6
24	24
25	25	BY adding to 7
26	26	Article – Tax – General 8
27	27	Section 2–1302.5 and 11–104(l) 9
28	28	Annotated Code of Maryland 10
29	29	(2022 Replacement Volume and 2024 Supplement) 11
30	30
31	31	BY repealing and reenacting, with amendments, 12
32	32	Article – Tax – General 13
33	33	Section 2–1303 and 11–102(c) 14
34	34	Annotated Code of Maryland 15
35	35	(2022 Replacement Volume and 2024 Supplement) 16
36	36
37	37	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
38	38	That the Laws of Maryland read as follows: 18
39	39
40	40	Article – Tax – General 19
41	41
42	42	2–1302.5. 20
43	43
44	44	AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER §§ 2–1301 THROUGH 21
45	45	2–1302.4 OF THIS SUBTITLE , THE COMPTROLLER SHALL DIS TRIBUTE THE SALES 22
46	46	TAX COLLECTED UNDER § 11–102(C)(3) OF THIS ARTICLE TO T HE CITY OF 23
47	47	BALTIMORE. 24 2 SENATE BILL 1037
48	48
49	49
50	50
51	51	2–1303. 1
52	52
53	53	After making the distributions required under §§ 2–1301 through [2–1302.4] 2
54	54	2–1302.5 of this subtitle, the Comptroller shall pay: 3
55	55
56	56	(1) revenues from the hotel surcharge into the Dorchester County 4
57	57	Economic Development Fund established under § 10–130 of the Economic Development 5
58	58	Article; 6
59	59
60	60	(2) to the Blueprint for Maryland’s Future Fund established under § 5–206 7
61	61	of the Education Article, the following percentage of the remaining sales and use tax 8
62	62	revenues: 9
63	63
64	64	(i) for fiscal year 2023, 9.2%; 10
65	65
66	66	(ii) for fiscal year 2024, 11.0%; 11
67	67
68	68	(iii) for fiscal year 2025, 11.3%; 12
69	69
70	70	(iv) for fiscal year 2026, 11.7%; and 13
71	71
72	72	(v) for fiscal year 2027 and each fiscal year thereafter, 12.1%; and 14
73	73
74	74	(3) the remaining sales and use tax revenue into the General Fund of the 15
75	75	State. 16
76	76
77	77	11–102. 17
78	78
79	79	(c) (1) A county, municipal corporation, special taxing district, or other 18
80	80	political subdivision of the State may not impose any retail sales or use tax except: 19
81	81
82	82	(i) a sales tax or use tax that was in effect on January 1, 1971; 20
83	83
84	84	(ii) a tax on the sale or use of: 21
85	85
86	86	1. fuels; 22
87	87
88	88	2. utilities; 23
89	89
90	90	3. space rentals; or 24
91	91
92	92	4. any controlled dangerous substance, as defined in § 5–101 25
93	93	of the Criminal Law Article, unless the sale is made by a person who registers under and 26
94	94	complies with Title 5, Subtitle 3 of the Criminal Law Article; [or] 27
95	95	SENATE BILL 1037 3
96	96
97	97
98	98	(iii) a tax imposed by a code county on the sale or use of food and 1
99	99	beverages authorized under § 20–602 of the Local Government Article; OR 2
100	100
101	101	(IV) A TAX IMPOSED IN ACC ORDANCE WITH PARAGRA PH (3) OF 3
102	102	THIS SUBSECTION . 4
103	103
104	104	(2) Paragraph (1) of this subsection may not be construed as conferring 5
105	105	authority to impose a sales and use tax. 6
106	106
107	107	(3) (I) SUBJECT TO THE LIMITA TIONS OF THIS PARAGR APH, THE 7
108	108	MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY IMPOSE, BY LAW, A SALES TAX 8
109	109	ON RETAIL SALES OF T ANGIBLE PERSONAL PRO PERTY AND TAXABLE SE RVICES IN 9
110	110	THE CITY OF BALTIMORE. 10
111	111
112	112	(II) THE SALES TAX IMPOSED IN ACCORDANCE WITH 11
113	113	SUBPARAGRAPH (I) OF THIS PARAGRAPH : 12
114	114
115	115	1. IS SUBJECT TO THE SC OPE AND LIMITATIONS OF THIS 13
116	116	TITLE; AND 14
117	117
118	118	2. SHALL BE COLLECTED A ND ADMINISTERED IN T HE 15
119	119	SAME MANNER AS THE STATE SALES AND USE T AX IMPOSED UNDER THI S TITLE. 16
120	120
121	121	(III) THE RATE OF THE SALES TAX IMPOSED IN ACCOR DANCE 17
122	122	WITH SUBPARAGRAPH (I) OF THIS PARAGRAPH MA Y NOT EXCEED 2% OF THE 18
123	123	TAXABLE PRICE OF THE TANGIBLE PERSONAL PR OPERTY OR TAXABLE SE RVICE. 19
124	124
125	125	(IV) BALTIMORE CITY SHALL GIVE T HE COMPTROLLER NOTICE 20
126	126	OF THE IMPOSITION OF A SALES TAX UNDER TH IS PARAGRAPH AND NOT ICE OF ANY 21
127	127	ALTERATION OF THE RA TE OF THE SALES TAX AT LEAST 6 MONTHS BEFORE ITS 22
128	128	EFFECTIVE DATE . 23
129	129
130	130	11–104. 24
131	131
132	132	(L) (1) THE SALES TAX RATE FO R A RETAIL SALE OF T ANGIBLE PERSONAL 25
133	133	PROPERTY OR A TAXABL E SERVICE IN THE CITY OF BALTIMORE IS, SUBJECT TO THE 26
134	134	LIMITATIONS OF § 11–102(C) OF THIS SUBTITLE , THE RATE SPECIFIED I N LAW BY 27
135	135	THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY. 28
136	136
137	137	(2) THE SALES TAX RATE DE SCRIBED UNDER PARAGR APH (1) OF THIS 29
138	138	SUBSECTION IS IN ADD ITION TO THE RATES O THERWISE SPECIFIED U NDER THIS 30
139	139	SECTION. 31
140	140	4 SENATE BILL 1037
141	141
142	142
143	143	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
144	144	1, 2025. 2