HB 916 establishes three new regional transportation funds for Baltimore, the Capital region, and Southern Maryland. It directs specific tax revenues - including 70% of sales tax surcharges and hotel surcharges collected in each region - to these funds, while the remaining 30% is distributed to local jurisdictions based on sales activity. The funds are designated as special, nonlapsing accounts, meaning they carry over year-to-year, and interest earned on these funds must be credited back to the same accounts. This bill creates the legal framework for regional transportation authorities to develop and implement transportation plans using these dedicated revenue streams.
HB 930 modifies Maryland’s income tax code to decouple from federal changes affecting education expenses. It prohibits the Governor from joining a federal tax credit program for elementary/secondary education scholarships and adjusts how employer contributions to education accounts (like Maryland’s Prepaid College Trust or College Investment Plans) are treated. Specifically, it adds tax on unused distributions from these accounts if not used for qualified education expenses, while excluding contributions and qualified distributions from taxable income. This directly affects Maryland residents using these education savings accounts and ensures state tax rules differ from federal law.
HB 1518 changes Maryland's property tax assessment cycle from every three years to every five years for most real property. This affects all Maryland property owners by reducing how frequently their property values are reassessed for tax purposes. The bill maintains that revaluation is still required if specific events occur, such as zoning changes, major improvements adding $100,000+ in value, or errors in calculation. It also preserves property owners' rights to appeal assessments and request re-inspections during the five-year cycle. The bill amends multiple sections of Maryland's tax code to implement this extended cycle.
HB 857 modifies Maryland's income tax rules to reduce the tax deduction for military retirement income for retirees under age 55. Currently, those under 55 receive a $12,500 deduction, but this bill would lower it to $20,000 (effectively increasing their taxable income by $7,500 annually). The change applies to military retirement income received during the taxable year, directly affecting Maryland residents who are military retirees under 55. The bill amends Section 10-207(q) of Maryland's tax code and takes effect July 1, 2026.
HB 967 prohibits Maryland electric companies from collecting certain environmental surcharges or fees during the year following any year when residential electricity bills rise faster than the Consumer Price Index (CPI) for urban consumers. It directly affects residential electricity customers by preventing additional charges if their bills outpace general inflation. The bill requires the Public Service Commission to annually calculate the annual growth in both the CPI and average residential electricity bills (using data ending June 30) and to block environmental fees if bill growth exceeds CPI growth. This applies to most environmental fees but excludes three specific fee types listed in the bill.
HB 1277 establishes the Maryland Institute for Literacy and Equity as a partnership between the University of Maryland, College Park, and Morgan State University. The bill requires the Governor to fund the Institute with $3 million in fiscal year 2028 (split between the two universities), increasing to $6 million annually starting in 2031. The Institute must conduct research, provide training for educators and literacy professionals, and offer technical assistance to school districts to improve reading instruction and outcomes - particularly for students in underserved communities. This directly affects Maryland students, school districts, and literacy professionals by creating a state-funded resource to address declining reading scores and equity gaps.
HB 1540 repeals the 2028 termination date for annual state funding required for the University of Maryland Capital Region Medical Center. The bill ensures the state will continue appropriating $10 million each fiscal year (previously set to end in 2028) to support the center's operations and transition. This directly affects the University of Maryland Medical System Corporation and Prince George's County, which must provide matching funds totaling $208 million for capital construction. The funding is specifically designated to maintain the medical center's financial viability, improve healthcare access, and prevent operating losses. The change removes the fixed end date, making the funding permanent unless future legislation alters it.
SB 468 authorizes Maryland counties to create their own local child tax credits against county income tax for qualifying families. It allows counties to provide credits for each "qualified child" (defined as a dependent under age 6, or under 17 with a disability) to households with federal adjusted gross income below $15,000. The credit amount is set by the county, but must follow income phaseout rules ($50 reduction per $1,000 of income over $15,000) and requires county notification to the Comptroller. This bill does not create a state-level credit but gives counties the option to implement this local tax benefit for low-income families.
SB 690 requires Maryland property and casualty insurance companies to contribute $5 million annually, starting July 1, 2026, from their premium tax revenue to the State Disaster Recovery Fund. This fund, established under Maryland law, supports disaster recovery efforts across the state. The bill amends Maryland's insurance code to mandate this specific annual distribution, directly affecting insurers by altering how a portion of their tax payments is allocated. It creates a concrete, automatic transfer of funds without new tax rates or eligibility requirements.
SB 603 establishes a mandatory mattress recycling program in Maryland, requiring mattress producers and their representatives to submit stewardship plans to the Department of the Environment. The bill prohibits landfill disposal and incineration of mattresses after specific dates (with limited exceptions) and mandates an assessment on all mattresses sold in the state to fund recycling. Retailers must provide consumers with information about the program, while the Department must approve plans and oversee the Mattress Stewardship Advisory Board. This aims to divert mattresses from waste streams, aligning with Maryland’s sustainable materials management goals and modeled after successful programs in other states.
