MD
Maryland Senate Bill SB814

Maryland 2025 Regular Session

Maryland Senate Bill SB814 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
5- Underlining indicates amendments to bill.
6- Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7-amendment.
85 *sb0814*
96
107 SENATE BILL 814
118 L1, Q8 5lr3190
129 CF HB 698
1310 By: Senators Watson, Rosapepe, and Muse
1411 Introduced and read first time: January 28, 2025
1512 Assigned to: Budget and Taxation
16-Committee Report: Favorable with amendments
17-Senate action: Adopted
18-Read second time: February 28, 2025
1913
20-CHAPTER ______
14+A BILL ENTITLED
2115
2216 AN ACT concerning 1
2317
2418 Local Government – Development Impact Fees, Surcharges, and Excise Taxes – 2
2519 Reporting 3
2620
2721 FOR the purpose of requiring county governments to make a certain report to the Governor 4
28-and General Assembly Department of Planning on the amount and amount, use, and 5
29-location of the use of county development impact fees, surcharges, and excise taxes; 6
30-requiring county governments to make certain reports to the Department of 7
31-Planning identifying certain local laws; and generally relating to county reporting of 8
32-development impact fees, surcharges, and excise taxes. 9
22+and General Assembly on the amount and use of county development impact fees, 5
23+surcharges, and excise taxes; and generally relating to county reporting of 6
24+development impact fees, surcharges, and excise taxes. 7
3325
34-BY adding to 10
35- Article – Local Government 11
36-Section 20–125 12
37- Annotated Code of Maryland 13
38- (2013 Volume and 2024 Supplement) 14
26+BY adding to 8
27+ Article – Local Government 9
28+Section 20–125 10
29+ Annotated Code of Maryland 11
30+ (2013 Volume and 2024 Supplement) 12
3931
40-Preamble 15
32+Preamble 13
4133
42- WHEREAS, Local governments in Maryland must have authority from the 16
43-Maryland General Assembly in order to impose a development impact fee or an excise tax; 17
44-and 18
34+ WHEREAS, Local governments in Maryland must have authority from the 14
35+Maryland General Assembly in order to impose a development impact fee or an excise tax; 15
36+and 16
4537
46- WHEREAS, Code home rule counties are authorized collectively to impose specified 19
47-development impact fees and excise taxes, and many counties have specific authorizations 20
48-from the Maryland General Assembly; and 21 2 SENATE BILL 814
38+ WHEREAS, Code home rule counties are authorized collectively to impose specified 17
39+development impact fees and excise taxes, and many counties have specific authorizations 18
40+from the Maryland General Assembly; and 19
41+
42+ WHEREAS, Title 20, Subtitle 7 of the Local Government Article provides for the 20
43+specific uses of revenues received from development impact fees; and 21
44+
45+ WHEREAS, County Commissioners of code counties may impose develop ment 22
46+impact fees by public local law to finance any of the capital costs of additional or expanded 23
47+public works improvements, and facilities required to accommodate new construction or 24
48+development; and 25 2 SENATE BILL 814
4949
5050
5151
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
52+ WHEREAS, The Supreme Court of the United States, in Sheetz v. County of El 1
53+Dorado, 601 U.S. ____ (2024), held that local government permit conditions (1) must have 2
54+an “essential nexus” to the government’s land use interests, and “rough proportionality” to 3
55+the development’s impact on the land use interest; and (2) may not require a landowner to 4
56+give up or pay more than is necessary to mitigate harms caused from new development; 5
57+now, therefore, 6
5458
55- WHEREAS, County Commissioners of code counties may impose development 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
59+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
60+That the Laws of Maryland read as follows: 8
5961
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
62+Article – Local Government 9
6663
67- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
68-That the Laws of Maryland read as follows: 14
64+20–125. 10
6965
70-Article – Local Government 15
66+ (A) THIS SECTION APPLIES ONLY TO A COUNTY THA T: 11
7167
72-20–125. 16
68+ (1) IS A CHARTER COUNTY THAT IMPOSES , BY LAW, DEVELOPMENT 12
69+FEES, SURCHARGES , OR EXCISE TAXES; 13
7370
74- (A) THIS SECTION APPLIES ONLY TO A COUNTY THA T: 17
71+ (2) IS A CODE COUNTY WIT H PUBLIC LOCAL LAWS THAT REQUIRE THE 14
72+PAYMENT OF DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES; OR 15
7573
76- (1) IS A CHARTER COUNTY THAT IMPOSES , BY LAW, DEVELOPMENT 18
77-FEES, SURCHARGES , OR EXCISE TAXES; 19
74+ (3) IS A COMMISSION COUN TY THAT: 16
7875
79- (2) IS A CODE COUNTY WIT H PUBLIC LOCAL LAWS THAT REQUIRE THE 20
80-PAYMENT OF DEVELOPME NT IMPACT FEES, SURCHARGES , OR EXCISE TAXES; OR 21
76+ (I) HAS BEEN AUTHORIZED TO ENACT DEVELOPMENT IMPACT 17
77+FEES, SURCHARGES , OR EXCISE TAXES; AND 18
8178
82- (3) IS A COMMISSION COUN TY THAT: 22
79+ (II) HAS ENACTED , BY LOCAL LAW , DEVELOPMENT IMPACT 19
80+FEES, SURCHAR GES, OR EXCISE TAXES. 20
8381
84- (I) HAS BEEN AUTHORIZED TO ENACT DEVELOPMENT IMPACT 23
85-FEES, SURCHARGES , OR EXCISE TAXES; AND 24
82+ (B) ON OR BEFORE JULY 1 EACH YEAR, EACH COUNTY SHALL RE PORT TO 21
83+THE GOVERNOR AND THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF 22
84+THE STATE GOVERNMENT ARTICLE, THE FOLLOWING INFORM ATION RELATING TO 23
85+THE COLLECTION AND E XPENDITURE OF DEVELOPMENT IMPAC T FEES, 24
86+SURCHARGES , OR EXCISE TAXES FOR THE PRIOR CALENDAR Y EAR: 25
8687
87- (II) HAS ENACTED , BY LOCAL LAW , DEVELOPMENT IMPACT 25
88-FEES, SURCHARGES , OR EXCISE TAXES. 26
88+ (1) THE TOTAL AMOUNT OF DEVELOPMENT IMPACT F EES, 26
89+SURCHARGES , OR EXCISE TAXES PAID BY NEW CONSTRUCTION OR DEVELOPMENT 27
90+PROJECTS; 28
8991
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, DEPARTMENT OF PLANNING THE FOLLOWING 29
93-INFORMATION RELATING TO THE COLLECTION AN D EXPENDITURE OF 30
94-DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES FOR THE PRIOR 31
95-CALENDAR YEAR : 32
96- SENATE BILL 814 3
92+ (2) THE PORTION OF THE D EVELOPMENT IMP ACT FEES , 29
93+SURCHARGES , OR EXCISE TAXES PAID TO THE COUNTY BY LEG ISLATIVE, 30
94+COUNCILMANIC , OR COMMISSIONER DIST RICT IN WHICH THE CO NSTRUCTION OR 31 SENATE BILL 814 3
9795
9896
99- (1) THE TOTAL AMOUNT OF DEVELOPMENT IMPACT F EES, 1
100-SURCHARGES , OR EXCISE TAXES PAID BY NEW CONSTRUCTION OR DEVELOPMENT 2
101-PROJECTS; 3
97+DEVELOPMENT PROJECT THAT IS SUBJECT TO T HE FEE, SURCHARGE , OR TAX IS 1
98+LOCATED; AND 2
10299
103- (2) THE PORTION OF THE D EVELOPMENT IMPACT FEES, 4
104-SURCHARGES , OR EXCISE TAXES PAID TO THE COUNTY BY LEGISLATIVE , 5
105-COUNCILMANIC , OR COMMISSIONER DIST RICT IN WHICH THE CO NSTRUCTION OR 6
106-DEVELOPMENT PROJECT THAT IS SUBJECT TO T HE FEE, SURCHARGE , OR TAX IS 7
107-LOCATED; AND 8
100+ (3) EXCEPT AS PROVIDED B Y SUBSECTION (C) OF THIS SECTION, THE 3
101+PORTION OF DEVELOPME NT IMPACT FEES, SURCHARGES , OR EXCISE TAXES USED TO 4
102+FUND CAPITAL IMPROVE MENT PROJECTS IN THE LEGISLATIVE, COUNCILMANIC , OR 5
103+COMMISSIONER DISTRIC T THAT ARE RELATED T O TRANSPORTATION 6
104+IMPROVEMENTS OR MAIN TENANCE, SCHOOL CONSTRUCTION OR MAINTENANCE , OR 7
105+ANY OTHER CAPITAL IM PROVEMENT PROJECT TH AT RECEIVED FUNDING FROM 8
106+DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES. 9
108107
109- (3) THE ADDRESS AND LOCA TION OF THE DEVELOPMENT WITHI N THE 9
110-COUNTY WHERE THE IMP ACT FEES, SURCHARGES , OR EXCISE TAXES WERE DERIVED; 10
111-AND 11
108+ (C) IF THE FUNDING UNDER SUBSECTION (B)(3) OF THIS SECTION IS 10
109+COLLECTED UNDER SUBTITLE 8 OF THIS TITLE, THE REPORT MAY EXCLU DE THE 11
110+INFORMATION OTHERWIS E REQUIRED UNDER SUB SECTION (B)(3) OF THIS SECTION. 12
112111
113- (3) (4) EXCEPT AS PROVIDED B Y SUBSECTION (C) OF THIS SECTION, 12
114-THE PORTION OF DEVEL OPMENT IMPACT FEES , SURCHARGES , OR EXCISE TAXES 13
115-USED TO FUND CAPITAL IMPROVEMENT PROJECTS IN THE LEGISLATIVE , 14
116-COUNCILMANIC , OR COMMISSIONER DISTRIC T THAT ARE RELATED TO 15
117-TRANSPORTATIO N IMPROVEMENTS OR MA INTENANCE, SCHOOL CONSTRUCTION OR 16
118-MAINTENANCE , OR ANY OTHER CAPITAL IMPROVEMENT PROJECT THAT RECEIVED 17
119-FUNDING FROM DEVELOP MENT IMPACT FEES , SURCHARGES , OR EXCISE TAXES. 18
112+ (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A COUNTY 13
113+SHALL MAKE THE REPOR T PUBLICLY AVAILABLE ON THE COUNTY ’S WEBSITE. 14
120114
121- (C) IF THE FUNDING UNDER SUBSECTION (B)(3) (B)(4) OF THIS SECTION IS 19
122-COLLECTED UNDER SUBTITLE 8 OF THIS TITLE, THE REPORT MAY EXCLU DE THE 20
123-INFORMATION OTHERWIS E REQUIRED UNDER SUB SECTION (B)(3) (B)(4) OF THIS 21
124-SECTION. 22
115+ (2) A COUNTY THAT DOES NOT MAIN TAIN A WEBSITE SHALL MAKE 15
116+THE REPORT PUBLICLY AVAILABLE BY OTHER R EASONABLE MEANS . 16
125117
126- (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A COUNTY 23
127-SHALL MAKE THE REPOR T PUBLICLY AVAILABLE ON THE COUNTY ’S WEBSITE. 24
118+ (3) A COUNTY MAY SUBMIT TH E REPORT AS PART OF ANOTHER 17
119+REPORT REQUIRED UNDE R THIS ARTICLE. 18
128120
129- (2) A COUNTY THAT DOES NOT MAINTAIN A WEBSITE S HALL MAKE 25
130-THE REPORT PUBLICLY AVAILABLE BY OTHER R EASONABLE MEANS . 26
121+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
122+October 1, 2025. 20
131123
132- (3) A COUNTY MAY SUBMIT TH E REPORT AS PART OF ANOTHER 27
133-REPORT REQUIRED UNDE R THIS ARTICLE. 28
134-
135- (E) (1) ON OR BEFORE JULY 1, 2026, EACH COUNTY SHALL SU BMIT A 29
136-REPORT TO THE DEPARTMENT OF PLANNING THAT IDENTIF IES ANY LOCAL LAW 30
137-THAT AUTHORIZES THE COLLECTION AND EXPEN DITURE OF DEVELOPMEN T IMPACT 31
138-FEES, SURCHARGES , OR EXCISE TAXES. 32
139-
140- (2) AFTER JULY 1, 2026, EACH COUNT Y SHALL SUBMIT A REP ORT TO 33
141-THE DEPARTMENT OF PLANNING EACH TIME TH E COUNTY ENACTS OR A MENDS A 34 4 SENATE BILL 814
142-
143-
144-LOCAL LAW THAT AUTHO RIZES THE COLLECTION AND EXPENDITURE OF 1
145-DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES. 2
146-
147- SECTION 2. AND BE IT FURTHER ENACTED, That th is Act shall take effect 3
148-October 1, 2025. 4
149-
150-
151-
152-Approved:
153-________________________________________________________________________________
154- Governor.
155-________________________________________________________________________________
156- President of the Senate.
157-________________________________________________________________________________
158- Speaker of the House of Delegates.