SB 403 exempts sales tax on in-person book fairs held at Maryland elementary and secondary schools. It applies to sales by schools, parent-teacher organizations (PTOs), or other nonprofit groups operating these events on school premises. The exemption covers sales where students, staff, or PTO members act as agents for vendors, with all net proceeds used solely for the school's educational benefit. This bill adds a new tax exemption provision (Section 11-204(b)(9)) to Maryland’s tax code, effective July 1, 2026.
HB 654 modifies funding rules for Maryland's Heritage Areas Authority, directly affecting local jurisdictions and entities managing certified heritage areas. It removes previous 50% limits on grant coverage for project costs (allowing full funding for eligible activities like preservation and marketing) and adjusts how Program Open Space funds are used. Specifically, it increases the allowable percentage for operating expenses from 10% to 7% or $600,000 (whichever is greater), and raises the maximum funding transfer to the Authority's Financing Fund. These changes aim to provide greater flexibility for heritage area management while maintaining oversight of fund usage.
SB 163 modifies Maryland's income tax calculation by removing a requirement to include certain foreign earned income in taxable income. It specifically exempts income that qualifies for exclusion under federal law (IRS Section 911), such as earnings from work abroad that are already excluded from federal taxes but would otherwise be added to Maryland taxable income. This change directly affects Maryland residents earning qualifying foreign income who currently face state taxation on that income. The bill amends Maryland tax code sections 10-204(a) and 10-204(c)(1)(I) and takes effect for taxable years beginning after December 31, 2025.
SB 756 creates a tax exemption for certain new or rehabilitated commercial or residential developments in Baltimore City's Downtown RISE District (specifically Wards 4 and 22 precincts), replacing property taxes with annual "payment in lieu of taxes" agreements. Property owners must enter a formal agreement with Baltimore City by June 30, 2036, after demonstrating the project's economic necessity through a city-approved analysis. The bill requires annual reporting on job creation, estimated tax revenue, and other economic benefits of qualifying projects. This applies only to developments including hotels, offices, retail, multifamily housing, or mixed-use facilities within the defined district.
SB 860 establishes the Aging Resilience Fund, a dedicated, nonlapsing fund administered by Maryland's Department of Aging. The fund is designed to support the department's mission by covering administrative costs like personnel, partnership development, and senior-focused programs. Interest earnings from the fund must be reinvested into the fund itself, and money can only be spent following state budget rules. This bill directly affects the Department of Aging's operations and senior services programs in Maryland.
HB 1095 creates a property tax credit program for Calvert County property owners whose land was formerly used solely as a tobacco barn. To qualify, the property must either be on land under a tobacco buyout agreement or meet agricultural assessment criteria while being used for approved farming activities. The county's governing body will set the credit amount, duration, and administrative rules. This credit applies to property taxes for taxable years starting after June 30, 2026. The bill directly affects Calvert County landowners transitioning from tobacco farming to other agricultural uses.
HB 478 modifies Maryland's income tax by expanding the existing $250 deduction for unreimbursed classroom supply expenses to include prekindergarten teachers. Previously, only K-12 classroom teachers qualified; this bill explicitly adds prekindergarten teachers employed full-time in state programs. The deduction remains limited to $250 per year for supplies used by students or for teaching preparation, excluding expenses already deducted federally. This change affects prekindergarten teachers statewide who purchase classroom supplies without reimbursement, effective for taxable years starting after December 31, 2025.
SB 262 expands Maryland's income tax deduction for teachers by adding prekindergarten teachers to the list of eligible educators who can deduct up to $250 annually for unreimbursed classroom supply expenses. The bill amends tax code sections to include prekindergarten classroom teachers employed full-time in state programs as "eligible teachers," alongside existing K-12 teachers. This deduction applies only to supplies used by students or for teaching preparation, and excludes expenses already deducted federally. The change takes effect for taxable years beginning after December 31, 2025.
SB 961 modifies Maryland's tax credit for hunters donating processed deer meat. It removes the previous $300 annual limit on the credit, allowing hunters to claim the full credit for eligible expenses without the cap. The bill maintains a $75 per deer processing expense limit and requires donations to go to IRS 501(c)(3) organizations. Hunters must still comply with hunting laws, and donation programs must report donor information to the Comptroller annually. The change takes effect July 1, 2026.
SB 980 modifies Maryland's property tax credit for disabled veterans and surviving spouses by adjusting the required disability rating thresholds. It lowers the minimum rating for the 50% credit from 75% to 70% and for the 25% credit from 74% to 69%, expanding eligibility without changing existing income limits ($100,000 for single filers, $200,000 for joint filers). The bill applies to veterans or surviving spouses owning a dwelling house who meet the revised disability criteria. This change takes effect for taxable years beginning after June 30, 2026.
