EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 28, 2025
CHAPTER ______
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 Department of Planning on the amount and amount, use, and 5
location of the use of county development impact fees, surcharges, and excise taxes; 6
requiring county governments to make certain reports to the Department of 7
Planning identifying certain local laws; and generally relating to county reporting of 8
development impact fees, surcharges, and excise taxes. 9
BY adding to 10
Article – Local Government 11
Section 20–125 12
Annotated Code of Maryland 13
(2013 Volume and 2024 Supplement) 14
Preamble 15
WHEREAS, Local governments in Maryland must have authority from the 16
Maryland General Assembly in order to impose a development impact fee or an excise tax; 17
and 18
WHEREAS, Code home rule counties are authorized collectively to impose specified 19
development impact fees and excise taxes, and many counties have specific authorizations 20
from the Maryland General Assembly; and 21 2 SENATE BILL 814
WHEREAS, Title 20, Subtitle 7 of the Local Government Article provides for the 1
specific uses of revenues received from development impact fees; and 2
WHEREAS, County Commissioners of code counties may impose development 3
impact fees by public local law to finance any of the capital costs of additional or expanded 4
public works improvements, and facilities required to accommodate new construction or 5
development; and 6
WHEREAS, The Supreme Court of the United States, in Sheetz v. County of El 7
Dorado, 601 U.S. ____ (2024), held that local government permit conditions (1) must have 8
an “essential nexus” to the government’s land use interests, and “rough proportionality” to 9
the development’s impact on the land use interest; and (2) may not require a landowner to 10
give up or pay more than is necessary to mitigate harms caused from new development; 11
now, therefore, 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Local Government 15
20–125. 16
(A) THIS SECTION APPLIES ONLY TO A COUNTY THA T: 17
(1) IS A CHARTER COUNTY THAT IMPOSES , BY LAW, DEVELOPMENT 18
FEES, SURCHARGES , OR EXCISE TAXES; 19
(2) IS A CODE COUNTY WIT H PUBLIC LOCAL LAWS THAT REQUIRE THE 20
PAYMENT OF DEVELOPME NT IMPACT FEES, SURCHARGES , OR EXCISE TAXES; OR 21
(3) IS A COMMISSION COUN TY THAT: 22
(I) HAS BEEN AUTHORIZED TO ENACT DEVELOPMENT IMPACT 23
FEES, SURCHARGES , OR EXCISE TAXES; AND 24
(II) HAS ENACTED , BY LOCAL LAW , DEVELOPMENT IMPACT 25
FEES, SURCHARGES , OR EXCISE TAXES. 26
(B) ON OR BEFORE JULY 1 EACH YEAR, EACH COUNTY SHALL RE PORT TO 27
THE GOVERNOR AND THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF 28
THE STATE GOVERNMENT ARTICLE, DEPARTMENT OF PLANNING THE FOLLOWING 29
INFORMATION RELATING TO THE COLLECTION AN D EXPENDITURE OF 30
DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES FOR THE PRIOR 31
CALENDAR YEAR : 32
SENATE BILL 814 3
(1) THE TOTAL AMOUNT OF DEVELOPMENT IMPACT F EES, 1
SURCHARGES , OR EXCISE TAXES PAID BY NEW CONSTRUCTION OR DEVELOPMENT 2
PROJECTS; 3
(2) THE PORTION OF THE D EVELOPMENT IMPACT FEES, 4
SURCHARGES , OR EXCISE TAXES PAID TO THE COUNTY BY LEGISLATIVE , 5
COUNCILMANIC , OR COMMISSIONER DIST RICT IN WHICH THE CO NSTRUCTION OR 6
DEVELOPMENT PROJECT THAT IS SUBJECT TO T HE FEE, SURCHARGE , OR TAX IS 7
LOCATED; AND 8
(3) THE ADDRESS AND LOCA TION OF THE DEVELOPMENT WITHI N THE 9
COUNTY WHERE THE IMP ACT FEES, SURCHARGES , OR EXCISE TAXES WERE DERIVED; 10
AND 11
(3) (4) EXCEPT AS PROVIDED B Y SUBSECTION (C) OF THIS SECTION, 12
THE PORTION OF DEVEL OPMENT IMPACT FEES , SURCHARGES , OR EXCISE TAXES 13
USED TO FUND CAPITAL IMPROVEMENT PROJECTS IN THE LEGISLATIVE , 14
COUNCILMANIC , OR COMMISSIONER DISTRIC T THAT ARE RELATED TO 15
TRANSPORTATIO N IMPROVEMENTS OR MA INTENANCE, SCHOOL CONSTRUCTION OR 16
MAINTENANCE , OR ANY OTHER CAPITAL IMPROVEMENT PROJECT THAT RECEIVED 17
FUNDING FROM DEVELOP MENT IMPACT FEES , SURCHARGES , OR EXCISE TAXES. 18
(C) IF THE FUNDING UNDER SUBSECTION (B)(3) (B)(4) OF THIS SECTION IS 19
COLLECTED UNDER SUBTITLE 8 OF THIS TITLE, THE REPORT MAY EXCLU DE THE 20
INFORMATION OTHERWIS E REQUIRED UNDER SUB SECTION (B)(3) (B)(4) OF THIS 21
SECTION. 22
(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A COUNTY 23
SHALL MAKE THE REPOR T PUBLICLY AVAILABLE ON THE COUNTY ’S WEBSITE. 24
(2) A COUNTY THAT DOES NOT MAINTAIN A WEBSITE S HALL MAKE 25
THE REPORT PUBLICLY AVAILABLE BY OTHER R EASONABLE MEANS . 26
(3) A COUNTY MAY SUBMIT TH E REPORT AS PART OF ANOTHER 27
REPORT REQUIRED UNDE R THIS ARTICLE. 28
(E) (1) ON OR BEFORE JULY 1, 2026, EACH COUNTY SHALL SU BMIT A 29
REPORT TO THE DEPARTMENT OF PLANNING THAT IDENTIF IES ANY LOCAL LAW 30
THAT AUTHORIZES THE COLLECTION AND EXPEN DITURE OF DEVELOPMEN T IMPACT 31
FEES, SURCHARGES , OR EXCISE TAXES. 32
(2) AFTER JULY 1, 2026, EACH COUNT Y SHALL SUBMIT A REP ORT TO 33
THE DEPARTMENT OF PLANNING EACH TIME TH E COUNTY ENACTS OR A MENDS A 34 4 SENATE BILL 814
LOCAL LAW THAT AUTHO RIZES THE COLLECTION AND EXPENDITURE OF 1
DEVELOPMENT IMPACT F EES, SURCHARGES , OR EXCISE TAXES. 2
SECTION 2. AND BE IT FURTHER ENACTED, That th is Act shall take effect 3
October 1, 2025. 4
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.