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.
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.
HB 1232 allows developers to avoid Baltimore City property taxes for new or renovated commercial or multifamily projects in the Downtown RISE District (specifically wards 4, 21, and 22 precincts) by entering a payment-in-lieu-of-taxes agreement with the city. To qualify, the project must include at least one facility like a hotel, office building, or retail space, and the city must first confirm the project’s financial necessity through an economic analysis. Developers must apply for the agreement by June 30, 2036, with building permits secured and financing conditions met. The city must annually report job creation, estimated tax impacts, and other economic benefits to city council and the state legislature. The bill takes effect July 1, 2026.
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.
This bill reorganizes the governing structure for Drummond's special taxing district in Montgomery County. It establishes the Village Council as the official governing body, defines Drummond's boundaries (including specific subdivisions), and updates how annual tax funds are collected and spent. Property owners in Drummond will pay a $0.14 tax per $100 of real property value and $0.35 per $100 of personal property annually, with funds required to cover street maintenance, police/fire protection, sanitation, and other local services. The bill amends Montgomery County's existing Public Local Laws (Sections 65-1 through 65-13) to formalize these changes.
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.
HB 472 extends the expiration date for Maryland's theatrical production tax credit from 2027 to 2032. This credit allows theater producers to claim a reduction on their state income tax for qualifying production costs. The bill directly affects film and theater producers in Maryland who currently qualify for the credit. It modifies existing law (from 2022) to extend the credit's validity period by five additional years, ensuring the program remains active through 2032 without requiring new legislative action.
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.
