EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0814*
SENATE BILL 814
L1, Q8 5lr3190
CF HB 698
By: Senators Watson, Rosapepe, and Muse
Introduced and read first time: January 28, 2025
Assigned to: Budget and Taxation
A BILL ENTITLED
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
WHEREAS, Title 20, Subtitle 7 of the Local Government Article provides for the 20
specific uses of revenues received from development impact fees; and 21
WHEREAS, County Commissioners of code counties may impose develop ment 22
impact fees by public local law to finance any of the capital costs of additional or expanded 23
public works improvements, and facilities required to accommodate new construction or 24
development; and 25 2 SENATE BILL 814
WHEREAS, The Supreme Court of the United States, in Sheetz v. County of El 1
Dorado, 601 U.S. ____ (2024), held that local government permit conditions (1) must have 2
an “essential nexus” to the government’s land use interests, and “rough proportionality” to 3
the development’s impact on the land use interest; and (2) may not require a landowner to 4
give up or pay more than is necessary to mitigate harms caused from new development; 5
now, therefore, 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That the Laws of Maryland read as follows: 8
Article – Local Government 9
20–125. 10
(A) THIS SECTION APPLIES ONLY TO A COUNTY THA T: 11
(1) IS A CHARTER COUNTY THAT IMPOSES , BY LAW, DEVELOPMENT 12
FEES, SURCHARGES , OR EXCISE TAXES; 13
(2) IS A CODE COUNTY WIT H PUBLIC LOCAL LAWS THAT REQUIRE THE 14
PAYMENT OF DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES; OR 15
(3) IS A COMMISSION COUN TY THAT: 16
(I) HAS BEEN AUTHORIZED TO ENACT DEVELOPMENT IMPACT 17
FEES, SURCHARGES , OR EXCISE TAXES; AND 18
(II) HAS ENACTED , BY LOCAL LAW , DEVELOPMENT IMPACT 19
FEES, SURCHAR GES, OR EXCISE TAXES. 20
(B) ON OR BEFORE JULY 1 EACH YEAR, EACH COUNTY SHALL RE PORT TO 21
THE GOVERNOR AND THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF 22
THE STATE GOVERNMENT ARTICLE, THE FOLLOWING INFORM ATION RELATING TO 23
THE COLLECTION AND E XPENDITURE OF DEVELOPMENT IMPAC T FEES, 24
SURCHARGES , OR EXCISE TAXES FOR THE PRIOR CALENDAR Y EAR: 25
(1) THE TOTAL AMOUNT OF DEVELOPMENT IMPACT F EES, 26
SURCHARGES , OR EXCISE TAXES PAID BY NEW CONSTRUCTION OR DEVELOPMENT 27
PROJECTS; 28
(2) THE PORTION OF THE D EVELOPMENT IMP ACT FEES , 29
SURCHARGES , OR EXCISE TAXES PAID TO THE COUNTY BY LEG ISLATIVE, 30
COUNCILMANIC , OR COMMISSIONER DIST RICT IN WHICH THE CO NSTRUCTION OR 31 SENATE BILL 814 3
DEVELOPMENT PROJECT THAT IS SUBJECT TO T HE FEE, SURCHARGE , OR TAX IS 1
LOCATED; AND 2
(3) EXCEPT AS PROVIDED B Y SUBSECTION (C) OF THIS SECTION, THE 3
PORTION OF DEVELOPME NT IMPACT FEES, SURCHARGES , OR EXCISE TAXES USED TO 4
FUND CAPITAL IMPROVE MENT PROJECTS IN THE LEGISLATIVE, COUNCILMANIC , OR 5
COMMISSIONER DISTRIC T THAT ARE RELATED T O TRANSPORTATION 6
IMPROVEMENTS OR MAIN TENANCE, SCHOOL CONSTRUCTION OR MAINTENANCE , OR 7
ANY OTHER CAPITAL IM PROVEMENT PROJECT TH AT RECEIVED FUNDING FROM 8
DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES. 9
(C) IF THE FUNDING UNDER SUBSECTION (B)(3) OF THIS SECTION IS 10
COLLECTED UNDER SUBTITLE 8 OF THIS TITLE, THE REPORT MAY EXCLU DE THE 11
INFORMATION OTHERWIS E REQUIRED UNDER SUB SECTION (B)(3) OF THIS SECTION. 12
(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A COUNTY 13
SHALL MAKE THE REPOR T PUBLICLY AVAILABLE ON THE COUNTY ’S WEBSITE. 14
(2) A COUNTY THAT DOES NOT MAIN TAIN A WEBSITE SHALL MAKE 15
THE REPORT PUBLICLY AVAILABLE BY OTHER R EASONABLE MEANS . 16
(3) A COUNTY MAY SUBMIT TH E REPORT AS PART OF ANOTHER 17
REPORT REQUIRED UNDE R THIS ARTICLE. 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
October 1, 2025. 20