Budget & Taxes (Revenue)

This bill limits how much free promotional betting credits sports wagering companies can exclude from state revenue calculations. It requires the State Lottery Commission to set a percentage cap (based on the company's prior year's retained revenue) for excluding free bets and promotional credits from "proceeds." This prevents licensees from excluding unlimited promotional value when calculating revenue for state programs. The change takes effect July 1, 2026.

HB 291 modifies how sports wagering proceeds are calculated in Maryland by limiting how much free promotional play (like free bets or credits) sports wagering licensees can exclude from their taxable proceeds. It requires the State Lottery and Gaming Control Commission to set a percentage limit, based on the licensee’s prior year’s retained proceeds, after the first full fiscal year of operations. This means licensees can no longer fully exclude all promotional value from their reported proceeds, instead subjecting a portion to state revenue calculations. The change directly affects sports betting operators and ensures more revenue is captured for state funds.

SB 405 changes how Maryland distributes sales tax revenue by requiring the Comptroller to pay one-third of sales tax collected from retail sales within Baltimore City directly to the City of Baltimore. This bill specifically affects Baltimore City by increasing its share of local sales tax revenue, which it will receive instead of the funds previously allocated to other state or county accounts. The key mechanism is a permanent reallocation of this specific revenue stream, effective July 1, 2026, with no other changes to tax rates or collection methods. This policy adjustment ensures Baltimore City receives a dedicated portion of tax revenue generated within its boundaries.

SB 118 imposes a new excise tax on gross receipts from firearm, accessory, and ammunition sales by federally licensed dealers in Maryland. The tax revenue will fund specific community safety programs: 26% to violence prevention initiatives, 26% to trauma centers, 20% to community safety partnerships, and smaller portions to survivor support and trauma physician services. The bill rewrites multiple sections of Maryland law to create this tax, establish revenue distribution rules, and define key terms like "firearm" and "ammunition." It explicitly states the funding is intended to supplement, not replace, existing state funding for these programs.