HB 358 exempts sales tax on in-person book fairs held at Maryland elementary or secondary schools when organized by the school, a nonprofit parent-teacher organization (PTO), or another school-based nonprofit. The exemption applies only if the book fair occurs on school premises and all net proceeds are used solely for the school’s educational benefit or student programs. This change modifies Maryland’s tax code by adding a new exemption under Section 11-204(b)(9), specifically covering book fairs managed by school staff, students, or PTO members acting as agents for vendors. The bill takes effect July 1, 2026.
SB 39 establishes a workgroup to develop a sustainable reimbursement rate methodology for Maryland's Certified Community Behavioral Health Clinics (CCBHCs) and Outpatient Mental Health Centers (OMHCs), directly affecting behavioral health providers facing financial strain due to outdated rates. The bill requires the Maryland Department of Health to conduct a cost study of OMHC services, form an advisory panel to review rate recommendations, and increase Medicaid reimbursement rates for OMHCs in fiscal years 2026 and 2027. Key provisions include evaluating provider costs, workforce needs, and alignment with somatic health care parity, while addressing closures like those in Frederick County. The workgroup must report findings by December 2027, aiming to stabilize provider finances and ensure continued access to community mental health care.
HB 590 renames Howard County's Agricultural Land Preservation Fund to the Agricultural Preservation and Innovation Fund and specifies how property transfer tax revenues are distributed. The bill directs 25% of transfer tax proceeds to school construction, 25% to park and watershed projects, and the remaining 50% to be split: 50% (of the remainder) for agricultural programs (including innovation to support farming sustainability), 25% for low-income housing and community improvement, and 25% for fire services. It also requires that any revenue from an increased transfer tax rate be distributed equally among school capital projects, recreation and parks capital projects, low-income housing, and fire services. The bill takes effect 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.
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 343 requires housing development projects receiving state funding to offer HUD-certified housing counseling services to prospective residents. It mandates that these services must be provided by counselors employed by an agency approved by the U.S. Department of Housing and Urban Development (HUD). The bill also requires the Governor to appropriate $200,000 annually starting in fiscal year 2028 for community development organizations to partner with approved housing counseling agencies. This directly affects developers receiving state housing funds and prospective residents of subsidized housing projects.
