SB 329 (Opting in on Opportunity Act) requires Maryland’s State Department of Education to certify nonprofit organizations as scholarship granting organizations (SGOs) if they meet specific criteria, such as being organized under Maryland law and providing scholarships to eligible students. It mandates the Department to annually submit a list of certified SGOs to the U.S. Treasury starting in 2027 and directs the Comptroller to provide online guidance helping taxpayers claim federal tax credits for donations to these SGOs. The bill directly affects nonprofit scholarship organizations seeking certification and Maryland taxpayers who contribute to them. Key provisions include standardized certification rules, annual reporting requirements, and public reporting of scholarship data (e.g., numbers awarded, amounts, schools attended). It aims to align Maryland’s process with the federal tax credit program under Section 25F of the Internal Revenue Code.
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.
HB 259 revises Maryland's financial regulations by repealing certain fees charged to banking institutions and credit unions, such as the $25 fee for charter certificate requests. It updates the Maryland Community Investment Venture Fund to extend the deadline for the Commissioner to match institutional investments from 2028 to 2030 and clarifies the Fund’s purpose: to help banks and credit unions develop financial products and services for low- to moderate-income communities. The bill also redesignates the Fund as a nonlapsing special fund (not part of the General Fund) and specifies that investment returns must credit the Banking Institution and Credit Union Regulation Fund. These changes directly affect banking institutions, credit unions, and the Commissioner of Financial Regulation.
HB 378 creates a state income tax credit for parents or legal guardians who volunteer at their child's elementary or secondary school in Prince George's County. Eligible individuals can claim a credit of $20 per volunteer hour, up to a $500 annual maximum, based on hours verified by school administrators or county board members. The credit is refundable if it exceeds the taxpayer's state income tax liability for the year. To claim the credit, applicants must submit a form to their school's administrator (for nonpublic schools) or county board representative (for public schools), and the State Department of Education will provide the necessary application and certificate forms. This policy directly affects parents and guardians volunteering in PG County public or charter schools.
HB 90 allows Maryland counties and Baltimore City to create a special property tax rate for commercial and industrial properties - including mixed-use buildings - to fund transportation projects or school budgets. It requires counties to automatically exempt the residential portion of mixed-use properties from this special tax using public records, without requiring owner applications. The special rate must be in addition to the general tax rate, cannot exceed 12.5 cents per $100 assessed value total, and cannot apply to residential parts of qualifying buildings. This directly affects commercial/industrial property owners, particularly those with mixed-use properties, by modifying how their taxes are calculated for specific public funding purposes.
HB 386 modifies Maryland's funding for the Washington Metropolitan Area Transit Authority (WMATA) by requiring the Governor to withhold 35% of annual grants under specific conditions. It directly affects WMATA and Maryland's budget process, mandating that the Governor withhold funds if WMATA fails to submit required reports (like safety assessments and financial data) or if it doesn't develop a rail signaling workforce transition plan by July 2028. The bill also requires WMATA to provide detailed annual reports on safety, ridership, finances, and capital investments to trigger full funding. If WMATA receives a modified audit opinion without a corrective plan, or misses the workforce plan deadline, the Governor must withhold the funds until these conditions are met.
SB 194 amends Maryland tax code to extend existing income and property tax benefits to members and veterans of the Space Force. It updates definitions in tax laws to explicitly include "space service" alongside military, naval, and air service, making Space Force members, veterans, and their surviving spouses eligible for current programs. Key provisions include revising eligibility for job creation tax credits (under Section 6-301(e)) and property tax exemptions for disabled veterans (Sections 7-208 and 9-265). These changes ensure Space Force personnel qualify for the same tax incentives previously available only to traditional military branches. The bill directly affects Space Force members, veterans, and their families by expanding access to existing state tax benefits.
SB 287 allows local governments in Maryland to designate *noncontiguous* blighted areas as development districts for tax increment financing (TIF). This means communities can now use TIF tools for economic development projects in disconnected land parcels (like separate lots in a blighted neighborhood) that were previously ineligible under the law. The bill amends Maryland’s Economic Development Code to explicitly include "noncontiguous" areas in the definition of "development district" and updates related sections to permit this designation. It directly affects counties, cities, and other local governments seeking to revitalize fragmented blighted areas through TIF. The change takes effect October 1, 2026.
HB 607 increases the annual salaries for Maryland's four constitutional officers: the Comptroller, Treasurer, Attorney General, and Secretary of State. The bill establishes new salary schedules with step increases after each anniversary of an officer's term, raising the first-year salary to $175,000-$185,000 (depending on the office) starting in 2027, with subsequent raises to $180,000-$185,000 in later years. These changes apply only to terms beginning on or after October 1, 2026, and do not affect current officeholders serving terms that started before this date. The bill amends specific sections of Maryland's Annotated Code to implement these salary adjustments.
HB 26 allows students to attend public schools in counties other than their home county with parental/guardian consent, subject to specific rules. County school boards must create transparent application processes, prioritize local students and siblings, and track enrollment capacity, while ensuring compliance with anti-discrimination laws. The bill requires sending counties (where students live) to fund receiving counties (where schools are attended) based on per-student costs, with the state covering shortfalls if the sending county spends less. This directly affects students seeking cross-county schooling, county school boards, and the funding distribution between school districts.
