HB 352 Maryland House of Delegates · 2025 Regular Session

Budget Reconciliation and Financing Act of 2025

HB 352, the Budget Reconciliation and Financing Act of 2025, makes broad adjustments to Maryland's state and local government finances. The bill increases various taxes, including the mobile sports wagering tax, vehicle excise tax, and state individual income tax rates, and expands the sales and use tax to include new services and products. It also alters or repeals numerous appropriations and programs, such as reducing film and higher education tax credits and ending the Low Intensity Support Services Program. Additionally, the bill shifts certain financial responsibilities to county governments, including portions of retirement costs for local employees and compensation for erroneously convicted individuals.

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

Apr 2025

House of Delegates Passage

Apr 2025

Senate Passage

Apr 2025

Signed into Law

May 2025

Introduced Jan 15, 2025 Signed May 20, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Third - Budget Reconciliation and Financing Act of 2025 → Enrolled - Budget Reconciliation and Financing Act of 2025 · 4 edits · May 20, 2025

MODERATE

The bill transitioned from a House draft to its final Enrolled version, incorporating significant substantive changes to the budget reconciliation act. Key additions include new provisions for the Maryland Horse Industry Board regarding purse deductions, the establishment of successor entities for racing facilities, and a review mechanism for the Judicial Branch. The text was also reorganized to better align with the official legislative format and include specific details on fund distributions and tax adjustments.

Scope change

The bill's scope expanded to explicitly include the Maryland Horse Industry Board, successor entities for racing facilities, and the Judicial Branch, which were not detailed in the initial House version.

SCOPE

Added specific authority for the Maryland Horse Industry Board to increase the cap on percentage deductions from open purses paid to certain organizations.

Established the Maryland Stadium Authority and Maryland Economic Development Corporation as successor entities to the Maryland Thoroughbred Racetrack Operating Authority for specific racing facility purposes.

REQUIREMENT

Made the Judicial Branch of the State government subject to review by the Office of Program Evaluation and Government Accountability.

TECHNICAL

Reorganized the bill's explanatory text and formatting to reflect the final Enrolled status, including the addition of proofreader lines and the Great Seal presentation details.

First - Budget Reconciliation and Financing Act of 2025 → Third - Budget Reconciliation and Financing Act of 2025 · 10 edits

MAJOR

The bill was advanced from first to third reading with significant amendments that changed its scope and content. The most notable change is the addition of new provisions related to mobile sports wagering taxes, wrongful conviction compensation, and various tax adjustments including vehicle excise tax and sales tax on services. The bill also reorganized how certain funds are managed and altered several existing tax provisions.

Scope change

The bill's scope expanded to include new tax provisions for mobile sports wagering, compensation for wrongfully convicted individuals, and additional sales tax categories including vending machine products and precious metals. Several repealed programs were replaced with new funding mechanisms.

FISCAL

Added provisions requiring county governments and Baltimore City to pay compensation for individuals who were erroneously convicted, sentenced, and confined.

Increased the tax rate imposed on mobile sports wagering.

Changed how certain funds are authorized for transfer and distribution, replacing previous composition requirements with new transfer authorization language.

Replaced the repeal of the Low Intensity Support Services Program with a cap on low intensity support services for certain individuals.

Reduced the amount of film tax credits that may be awarded in a certain fiscal year.

Exempted transfer tax revenue transfers to the General Fund from certain repayment requirements.

REQUIREMENT

Added new sales and use tax on the sale of certain categories of taxable services.

Added sales and use tax on vending machine products, precious metal bullion and coins, photographic material, and custom computer software.

Altered vehicle excise tax provisions by specifying rates for rental vehicles and changing the definition of historic motor vehicles.

Changed county tax rate limitations on individual Maryland taxable income.

Floor votes · Senate Mar 22, 2025 · House of Delegates Mar 23, 2025

How they voted

28–18

Passed

Total votes 46

Mar 22, 2025

D Democratic33

28 Yea 5 Nay

84% Yea

R Republican13

13 Nay

100% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 20, 2025

Signed into law

Approved by the Governor - Chapter 604

executive

Apr 7, 2025

Lower · Passed

Passed Enrolled

lower

Apr 7, 2025

Lower · Passed

Third Reading Passed

lower

Apr 7, 2025

Lower · Passed

Motion Vote Previous Question (Delegate J. Lewis) Adopted

lower

Apr 7, 2025

Lower · Passed

Conference Committee Report {

lower

Apr 2, 2025

Lower · Passed

Senate Conference Committee Appointed (Senators Guzzone, Rosapepe, Hettleman, Benson and Jennings)

lower

Apr 1, 2025

Upper · Passed

Senate Conference Committee Appointed (Senators Guzzone, Rosapepe, Hettleman, Benson and Jennings)

upper

Apr 1, 2025

Lower · Passed

House Conference Committee Appointed (Delegates Barnes, Atterbeary, Watson, Chang and J. Lewis)

lower

Apr 1, 2025

Introduced

House Refuses Concur Senate Amendments

lower

Apr 1, 2025

Upper · Passed

Third Reading Passed

upper

Mar 31, 2025

Introduced

Floor Amendment {

upper

Mar 31, 2025

Upper · Passed

Favorable with Amendments Adopted

upper

Mar 31, 2025

Upper · Passed

Committee Amendment (#26-31) Adopted

upper

Mar 31, 2025

Upper · Passed

Committee Amendment (#18-25) Adopted

upper

Mar 31, 2025

Upper · Passed

Committee Amendment (#11-17) Adopted

upper

Mar 31, 2025

Upper · Passed

Committee Amendment (#1-10) Adopted

upper

Mar 31, 2025

Upper · Passed

Favorable with Amendments {

upper

Mar 28, 2025

Upper · Passed

Motion Laid Over (Senator Guzzone) Adopted

upper

Mar 28, 2025

Upper · Passed

Favorable with Amendments {

upper

Mar 28, 2025

Upper · Passed

Favorable with Amendments Report by Budget and Taxation

upper

Mar 27, 2025

Committee

Referred Budget and Taxation

upper

Mar 27, 2025

Upper · Passed

Motion Rules Suspend to Refer (Senator Guzzone) Adopted

upper

Mar 27, 2025

Committee

Referred Senate Rules

upper

Mar 26, 2025

Lower · Passed

Third Reading Passed

lower

Mar 25, 2025

Amended

Floor Amendment (Delegate Grammer) Rejected

lower

Mar 25, 2025

Introduced

Floor Amendment {

lower

Mar 25, 2025

Lower · Passed

Favorable with Amendments Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#57-71) Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#56) Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#55) Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#55)

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#54) Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#54-56)

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#52-53) Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#51) Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#50) Adopted

lower

Mar 25, 2025

Lower · Passed

Motion Vote Previous Question (Delegate J. Lewis) Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#50)

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#47-49) Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#47-53)

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#46) Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#35-45) Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#34) Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#21-33) Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#21-34)

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#10-20) Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#3-9) Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#2) Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#1) Adopted

lower

Mar 25, 2025

Lower · Passed

Committee Amendment (#1-9)

lower

Mar 25, 2025

Lower · Passed

Favorable with Amendments {

lower

Mar 24, 2025

Lower · Passed

Motion Special Order until 03/25 (Delegate Barnes) Adopted

lower

Mar 24, 2025

Lower · Passed

Favorable with Amendments {

lower

Mar 24, 2025

Lower · Passed

Favorable with Amendments Report by Appropriations

lower

Mar 23, 2025

House Of Delegates · Passed

House of Delegates Vote: pass (95-41-3)

house of delegates

Mar 22, 2025

Senate · Passed

Senate Vote: pass (28-18)

senate

Jan 15, 2025

Committee

First Reading Appropriations

lower

0 primary · 0 co-sponsors

What changed between versions

How they voted

Actions timeline

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