EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb1037*
SENATE BILL 1037
Q8 5lr3579
CF HB 1508
By: Baltimore City Senators
Introduced and read first time: February 10, 2025
Assigned to: Rules
A BILL ENTITLED
AN ACT concerning 1
Baltimore City – Sales Tax – Authorization 2
FOR the purpose of authorizing the Mayor and City Council of Baltimore City to impose, 3
by law, a tax on retail sales in the City of Baltimore, subject to certain limitations; 4
and generally relating to authority for Baltimore City to impose a tax on retail sales 5
in the City of Baltimore. 6
BY adding to 7
Article – Tax – General 8
Section 2–1302.5 and 11–104(l) 9
Annotated Code of Maryland 10
(2022 Replacement Volume and 2024 Supplement) 11
BY repealing and reenacting, with amendments, 12
Article – Tax – General 13
Section 2–1303 and 11–102(c) 14
Annotated Code of Maryland 15
(2022 Replacement Volume and 2024 Supplement) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – Tax – General 19
2–1302.5. 20
AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER §§ 2–1301 THROUGH 21
2–1302.4 OF THIS SUBTITLE , THE COMPTROLLER SHALL DIS TRIBUTE THE SALES 22
TAX COLLECTED UNDER § 11–102(C)(3) OF THIS ARTICLE TO T HE CITY OF 23
BALTIMORE. 24 2 SENATE BILL 1037
2–1303. 1
After making the distributions required under §§ 2–1301 through [2–1302.4] 2
2–1302.5 of this subtitle, the Comptroller shall pay: 3
(1) revenues from the hotel surcharge into the Dorchester County 4
Economic Development Fund established under § 10–130 of the Economic Development 5
Article; 6
(2) to the Blueprint for Maryland’s Future Fund established under § 5–206 7
of the Education Article, the following percentage of the remaining sales and use tax 8
revenues: 9
(i) for fiscal year 2023, 9.2%; 10
(ii) for fiscal year 2024, 11.0%; 11
(iii) for fiscal year 2025, 11.3%; 12
(iv) for fiscal year 2026, 11.7%; and 13
(v) for fiscal year 2027 and each fiscal year thereafter, 12.1%; and 14
(3) the remaining sales and use tax revenue into the General Fund of the 15
State. 16
11–102. 17
(c) (1) A county, municipal corporation, special taxing district, or other 18
political subdivision of the State may not impose any retail sales or use tax except: 19
(i) a sales tax or use tax that was in effect on January 1, 1971; 20
(ii) a tax on the sale or use of: 21
1. fuels; 22
2. utilities; 23
3. space rentals; or 24
4. any controlled dangerous substance, as defined in § 5–101 25
of the Criminal Law Article, unless the sale is made by a person who registers under and 26
complies with Title 5, Subtitle 3 of the Criminal Law Article; [or] 27
SENATE BILL 1037 3
(iii) a tax imposed by a code county on the sale or use of food and 1
beverages authorized under § 20–602 of the Local Government Article; OR 2
(IV) A TAX IMPOSED IN ACC ORDANCE WITH PARAGRA PH (3) OF 3
THIS SUBSECTION . 4
(2) Paragraph (1) of this subsection may not be construed as conferring 5
authority to impose a sales and use tax. 6
(3) (I) SUBJECT TO THE LIMITA TIONS OF THIS PARAGR APH, THE 7
MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY IMPOSE, BY LAW, A SALES TAX 8
ON RETAIL SALES OF T ANGIBLE PERSONAL PRO PERTY AND TAXABLE SE RVICES IN 9
THE CITY OF BALTIMORE. 10
(II) THE SALES TAX IMPOSED IN ACCORDANCE WITH 11
SUBPARAGRAPH (I) OF THIS PARAGRAPH : 12
1. IS SUBJECT TO THE SC OPE AND LIMITATIONS OF THIS 13
TITLE; AND 14
2. SHALL BE COLLECTED A ND ADMINISTERED IN T HE 15
SAME MANNER AS THE STATE SALES AND USE T AX IMPOSED UNDER THI S TITLE. 16
(III) THE RATE OF THE SALES TAX IMPOSED IN ACCOR DANCE 17
WITH SUBPARAGRAPH (I) OF THIS PARAGRAPH MA Y NOT EXCEED 2% OF THE 18
TAXABLE PRICE OF THE TANGIBLE PERSONAL PR OPERTY OR TAXABLE SE RVICE. 19
(IV) BALTIMORE CITY SHALL GIVE T HE COMPTROLLER NOTICE 20
OF THE IMPOSITION OF A SALES TAX UNDER TH IS PARAGRAPH AND NOT ICE OF ANY 21
ALTERATION OF THE RA TE OF THE SALES TAX AT LEAST 6 MONTHS BEFORE ITS 22
EFFECTIVE DATE . 23
11–104. 24
(L) (1) THE SALES TAX RATE FO R A RETAIL SALE OF T ANGIBLE PERSONAL 25
PROPERTY OR A TAXABL E SERVICE IN THE CITY OF BALTIMORE IS, SUBJECT TO THE 26
LIMITATIONS OF § 11–102(C) OF THIS SUBTITLE , THE RATE SPECIFIED I N LAW BY 27
THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY. 28
(2) THE SALES TAX RATE DE SCRIBED UNDER PARAGR APH (1) OF THIS 29
SUBSECTION IS IN ADD ITION TO THE RATES O THERWISE SPECIFIED U NDER THIS 30
SECTION. 31
4 SENATE BILL 1037
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
1, 2025. 2