Reparations - Board, Fund, and Excise Tax on Endowments - Establishment

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1271*

HOUSE BILL 1271
Q7, P1 6lr2233

By: Delegates Ruff, Acevero, Conaway, Martinez, McCaskill, and Young
Introduced and read first time: February 12, 2026
Assigned to: Government, Labor, and Elections and Ways and Means

A BILL ENTITLED

AN ACT concerning 1

Reparations – Board, Fund, and Excise Tax on Endowments – Establishment 2

FOR the purpose of establishing the Reparations Board to make certain examinations 3
regarding reparations payments and make recommendations to the Governor and 4
the General Assembly to provide grants to persons impacted by historic inequality ; 5
establishing the Maryland Reparations Fund as a special, nonlapsing fund; requiring 6
interest earnings of the Fund to be credited to the Fund; imposing an excise tax on 7
nonpublic institutions that have an endowment of at least a certain amount ; 8
requiring the revenue from the endowment excise tax to be deposited into the Fund 9
to provide grants to persons impacted by historic inequality ; and generally relating 10
to reparations in the State. 11

BY repealing and reenacting, without amendments, 12
Article – State Finance and Procurement 13
Section 6–226(a)(2)(i) and (ii) 14
Annotated Code of Maryland 15
(2021 Replacement Volume and 2025 Supplement) 16

BY repealing and reenacting, with amendments, 17
Article – State Finance and Procurement 18
Section 6–226(a)(2)(iii)212. and 213. 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2025 Supplement) 21

BY adding to 22
Article – State Finance and Procurement 23
Section 6–226(a)(2)(iii)214. and 7–332 24
Annotated Code of Maryland 25
(2021 Replacement Volume and 2025 Supplement) 26

BY repealing and reenacting, without amendments, 27
2 HOUSE BILL 1271

Article – Tax – General 1
Section 1–101(a) and (g–1) 2
Annotated Code of Maryland 3
(2022 Replacement Volume and 2025 Supplement) 4

BY adding to 5
Article – Tax – General 6
Section 1–101(g–2); 2–4B–01 and 2–4B–02 to be under the new subtitle “Subtitle 4B. 7
Endowment Excise Tax Revenue Distribution”; 7.7–101 through 7.7–301 to be 8
under the new title “ Title 7.7. Endowment Excise Tax” ; and 13–201(4)(xx), 9
13–825(j), and 13–1001(h) 10
Annotated Code of Maryland 11
(2022 Replacement Volume and 2025 Supplement) 12

BY repealing and reenacting, with amendments, 13
Article – Tax – General 14
Section 1–101(g–2), 2–102(a), 13 –201(4)(xviii) and (xix), 13 –508(a) and (c), 15
13–509(a), and 13–1002 16
Annotated Code of Maryland 17
(2022 Replacement Volume and 2025 Supplement) 18

BY repealing and reenacting, with amendments, 19
Article – Tax – General 20
Section 13–508(a) and (c) and 13–509(a) 21
Annotated Code of Maryland 22
(2022 Replacement Volume and 2025 Supplement) 23
(As enacted by Chapter 638 of the Acts of the General Assembly of 2025) 24

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLA ND, 25
That the Laws of Maryland read as follows: 26

Article – State Finance and Procurement 27

6–226. 28

(a) (2) (i) This paragraph does not apply in fiscal years 2024 through 2028. 29

(ii) Notwithstanding any other provision of law, and unless 30
inconsistent with a federal law, grant agreement, or other federal requirement or with the 31
terms of a gift or settlement agreement, net interest on all State money allocated by the 32
State Treasurer under this section to special funds or accounts, and otherwise entitled to 33
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 34
Fund of the State. 35

(iii) The provisions of subparagraph (ii) of this paragraph do not 36
apply to the following funds: 37

HOUSE BILL 1271 3

212. the Department of Social and Economic Mobility Special 1
Fund; [and] 2

213. the Population Health Improvement Fund; AND 3

214. THE MARYLAND REPARATIONS FUND. 4

7–332. 5

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 6
INDICATED. 7

(2) “BOARD” MEANS THE REPARATIONS BOARD. 8

(3) “FUND” MEANS THE MARYLAND REPARATIONS FUND. 9

(B) (1) THERE IS A REPARATIONS BOARD. 10

(2) (I) 1. THE BOARD CONSISTS OF: 11

A. TWO MEMBERS OF THE PUBLIC , APPOINTED BY THE 12
PRESIDENT OF THE SENATE; 13

B. TWO MEMBERS OF THE PUBLIC , APPOINTED BY THE 14
SPEAKER OF THE HOUSE; 15

C. SEVEN MEMBERS OF THE PUBLIC, APPOINTED BY THE 16
LEGISLATIVE BLACK CAUCUS; AND 17

D. TWO MEMBERS OF THE PUBLIC , APPOINTED BY THE 18
GOVERNOR. 19

2. THE PRESIDENT OF THE SENATE AND THE SPEAKER 20
OF THE HOUSE JOINTLY MAY APPOINT TWO LEGISLATORS TO THE BOARD TO SERVE 21
IN AN ADVISORY CAPACITY. 22

(II) THE GOVERNOR, THE PRESIDENT OF THE SENATE, AND 23
THE SPEAKER OF THE HOUSE JOINTLY SHALL A PPOINT A CHAIR OF TH E BOARD 24
FROM AMONG THE BOARD’S MEMBERS. 25

(3) (I) 1. THE TERM OF A MEMBER IS 6 YEARS. 26

2. THE TERMS OF THE MEMB ERS ARE STAGGERED AS 27
FOLLOWS: 28
4 HOUSE BILL 1271

A. THE TERMS OF FOUR INITIAL MEMBERS SHAL L 1
TERMINATE ON JULY 1, 2030; 2

B. THE TERMS OF FOUR INITIAL M EMBERS SHALL 3
TERMINATE ON JULY 1, 2031; AND 4

C. THE TERMS OF FIVE INITIAL MEMBERS SHAL L 5
TERMINATE ON JULY 1, 2032. 6

(II) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE 7
UNTIL A SUCCESSOR IS APPOINTED. 8

(III) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN 9
SERVES ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINTED. 10

(4) (I) A MEMBER OF THE BOARD MAY BE REMOVED WITHOUT 11
CAUSE WITH THE APPROVAL OF A THREE–FOURTHS VOTE OF THE BOARD. 12

(II) THE LEGISLATIVE BLACK CAUCUS MAY REMOVE MEMBERS 13
OF THE BOARD FOR CAUSE IN ACCORDANCE WITH THE PROCESS AND PROCEDURES 14
TO ADJUDICATE REMOVA L THAT ARE ESTABLISHED BY THE EXECUTIVE 15
NOMINATIONS COMMITTEES OF THE SENATE AND THE HOUSE OF DELEGATES. 16

(5) (I) A MAJORITY OF BOARD MEMBERS CONSTIT UTES A 17
QUORUM. 18

(II) ACTION BY THE BOARD REQUIRES THE AFFIRMATIVE VOTE 19
OF A MAJORITY OF THE APPOINTED MEMBERS. 20

(6) A MEMBER OF THE BOARD: 21

(I) MAY NOT RECEIVE COMPE NSATION AS A MEMBER OF THE 22
BOARD; BUT 23

(II) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER 24
THE STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE 25
BUDGET, FOR DUTIES PERFORMED UNDER THIS SECTION. 26

(7) (I) EXCEPT AS PROVIDED IN THIS SUBSECTION, THE BOARD IS 27
EXEMPT FROM: 28

1. TITLE 10 AND DIVISION II OF THIS ARTICLE; AND 29
HOUSE BILL 1271 5

2. THE PROVISIONS OF DIVISION I OF THE STATE 1
PERSONNEL AND PENSIONS ARTICLE THAT GOVERN T HE STATE PERSONNEL 2
MANAGEMENT SYSTEM. 3

(8) THE BOARD IS SUBJECT TO: 4

(I) THE PUBLIC INFORMATION ACT; 5

(II) THE OPEN MEETINGS ACT; 6

(III) THE MARYLAND PUBLIC ETHICS LAW; AND 7

(IV) TITLE 12, SUBTITLE 4 OF THIS ARTICLE. 8

(C) (1) THE PURPOSE OF THE BOARD IS TO MAKE RECOMMENDATIONS TO 9
THE GOVERNOR AND THE GENERAL ASSEMBLY TO PROVIDE GRANTS TO PERSONS 10
IMPACTED BY HISTORIC INEQUALITY. 11

(2) TO ACHIEVE ITS PURPOSE, THE BOARD SHALL: 12

(I) EXAMINE REPARATIONS PAYMENTS MADE AND BE NEFITS 13
OFFERED IN THE UNITED STATES BY THE FEDERAL GOVERNMENT, STATES, CITIES, 14
RELIGIOUS INSTITUTIONS, AND COLLEGES AND UNIVERSITIES; AND 15

(II) USE ANY OTHER INFORM ATION NECESSARY TO 16
RECOMMEND GRANTS UNDER THIS SECTION. 17

(D) (1) THERE IS A MARYLAND REPARATIONS FUND. 18

(2) THE PURPOSE OF THE FUND IS TO PROVIDE GRANTS TO PERSONS 19
IMPACTED BY HISTORICAL INEQUALITY. 20

(3) (I) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 21
SUBJECT TO § 7–302 OF THIS SUBTITLE. 22

(II) THE STATE TREASURER SHALL HOLD THE FUND 23
SEPARATELY, AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 24

(4) THE FUND CONSISTS OF: 25

(I) REVENUE DISTRIBUTED TO THE FUND UNDER TITLE 2, 26
SUBTITLE 4B OF THE TAX – GENERAL ARTICLE; 27
6 HOUSE BILL 1271

(II) MONEY APPROPRIATED I N THE STATE BUDGET TO THE 1
FUND; 2

(III) INTEREST EARNINGS; AND 3

(IV) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 4
FOR THE BENEFIT OF THE FUND. 5

(5) THE FUND MAY BE USED ONLY FOR: 6

(I) GRANTS TO PERSONS IMPACTED BY HISTORIC INEQUALITY; 7
AND 8

(II) THE ADMINISTRATION OF THE BOARD, USING UP TO 20% OF 9
THE MONEY IN THE FUND ANNUALLY. 10

(6) (I) THE STATE TREASURER SHALL INVEST THE MONEY OF THE 11
FUND IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. 12

(II) ANY INTEREST EARNINGS OF THE FUND SHALL BE 13
CREDITED TO THE FUND. 14

(7) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN 15
ACCORDANCE WITH THE STATE BUDGET. 16

(8) MONEY EXPENDED FROM THE FUND IS SUPPLEMENTAL TO AND IS 17
NOT INTENDED TO TAKE THE PLACE OF FUNDING THAT OTHERWISE WOULD BE 18
APPROPRIATED FOR A SIMILAR PURPOSE. 19

(E) (1) GRANTS PROVIDED UNDER THIS SECTION SHALL BE USED FOR 20
INITIATIVES THAT HAV E THE EXPLICIT G OAL OF REPAIRING INE QUITIES THAT 21
DERIVE FROM HISTORIC DISCRIMINATION. 22

(2) GRANTS PROVIDED UNDER THIS SECTION MAY NOT BE USED FOR 23
LAW ENFORCEMENT ACTIVITY. 24

(F) ON OR BEFORE OCTOBER 1, 2026, AND EACH OCTOBER 1 THEREAFTER, 25
THE BOARD SHALL REPORT TO THE GOVERNOR AND THE GENERAL ASSEMBLY, IN 26
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON ITS 27
RECOMMENDATIONS FOR GRANTS. 28

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 29
as follows: 30
HOUSE BILL 1271 7

Article – Tax – General 1

1–101. 2

(a) In this article the following words have the meanings indicated. 3

(g–1) “Digital advertising gross revenues tax” means the tax imposed under Title 4
7.5 of this article. 5

(G–2) “ENDOWMENT EXCISE TAX” MEANS THE TAX IMPOSED UNDER TITLE 7.7 6
OF THIS ARTICLE. 7

[(g–2)] (G–3) (1) “Executive Director” means the Executive Director of the 8
Alcohol, Tobacco, and Cannabis Commission. 9

(2) “Executive Director” includes a deputy, an inspector, or any other 10
individual acting within the scope of the Executive Director’s authority. 11

2–102. 12

(a) In addition to the duties set forth elsewhere in this article and in other articles 13
of the Code, the Comptroller shall administer the laws that relate to: 14

(1) the admissions and amusement tax; 15

(2) the boxing and wrestling tax; 16

(3) the digital advertising gross revenues tax; 17

(4) THE ENDOWMENT EXCISE TAX; 18

(5) the income tax; 19

[(5)] (6) the Maryland estate tax; 20

[(6)] (7) the Maryland generation–skipping transfer tax; 21

[(7)] (8) the motor carrier tax; 22

[(8)] (9) the motor fuel tax; 23

[(9)] (10) the sales and use tax; and 24

[(10)] (11) the savings and loan association franchise tax. 25

8 HOUSE BILL 1271

SUBTITLE 4B. ENDOWMENT EXCISE TAX REVENUE DISTRIBUTION. 1

2–4B–01. 2

FROM THE ENDOWMENT EX CISE TAX REVENUE , THE COMPTROLLER SHALL 3
DISTRIBUTE THE AMOUNT NECESSARY TO ADMINIS TER THE ENDOWMENT EX CISE 4
TAX LAWS TO AN ADMINISTRATIVE COST ACCOUNT. 5

2–4B–02. 6

(A) AFTER MAKING THE DIST RIBUTION REQUIRED UN DER § 2–4B–01 OF 7
THIS SUBTITLE , THE COMPTROLLER SHALL DIS TRIBUTE THE REMAININ G 8
ENDOWMENT E XCISE TAX REVENUE TO THE MARYLAND REPARATIONS FUND 9
ESTABLISHED UNDER § 7–332 OF THE STATE FINANCE AND PROCUREMENT 10
ARTICLE. 11

(B) IT IS THE INTENT OF T HE GENERAL ASSEMBLY THAT THE REV ENUE 12
DISTRIBUTED UNDER SU BSECTION (A) OF THIS SECTION SUPP LEMENT, AND NOT 13
SUPPLANT, ANY OTHER FUNDING REQUIRED BY LAW. 14

TITLE 7.7. ENDOWMENT EXCISE TAX. 15

SUBTITLE 1. DEFINITIONS; GENERAL PROVISIONS. 16

7.7–101. 17

(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 18
INDICATED. 19

(B) “ENDOWMENT” INCLUDES A TRUE ENDOWMENT, A TERM ENDOWMENT, 20
AND A QUASI–ENDOWMENT. 21

(C) “TAXABLE INSTITUTION” MEANS A NONPUBLIC INSTITUTION WITH AN 22
ENDOWMENT, INCLUDING THE PRINCIPAL AND INTEREST EAR NINGS, OF AT LEAST 23
$2,000,000,000. 24

7.7–102. 25

(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, AN EXCISE 26
TAX IS IMPOSED ON THE ENDOWMENT OF TAXABLE INSTITUTIONS LOCATED IN THE 27
STATE. 28

HOUSE BILL 1271 9

(B) THE TAX IMPOSED UNDER SUBSECTION (A) OF THIS SECTION DOES NOT 1
APPLY TO THE ENDOWMENTS OF PUBLIC INSTITUTIONS OF THE STATE INCLUDING 2
PUBLIC INSTITUTIONS OF HIGHER EDUCATION. 3

7.7–103. 4

THE ENDOWMENT EXCISE TAX RATE IS 4%. 5

SUBTITLE 2. RETURNS. 6

7.7–201. 7

(A) EACH YEAR, A TAXABLE INSTITUTION SHALL COMPLETE, UNDER OATH, 8
AND FILE WITH THE COMPTROLLER AN ENDOWMENT EXCISE TAX RETURN: 9

(1) ON OR BEFORE APRIL 15 OF THE NEXT YEAR; AND 10

(2) IF THE COMPTROLLER SO SPECIFIES, BY REGULATION, ON OTHER 11
DATES. 12

(B) A TAXABLE INSTITUTION REQUIRED TO FILE A R ETURN UNDER THIS 13
SECTION SHALL FILE W ITH THE RETURN AN AT TACHMENT T HAT STATES ANY 14
INFORMATION THAT THE COMPTROLLER REQUIRES TO DETERMINE THE VALUE OF 15
THE ENDOWMENT. 16

7.7–202. 17

A TAXABLE INSTITUTION REQUIRED TO FILE A R ETURN UNDER § 7.7–201 OF 18
THIS SUBTITLE SHALL MAINTAIN MONTHLY RECORDS OF THE ENDOWMENT 19
ACCOUNT STATEMENTS, INCLUDING DEPOSITS , WITHDRAWALS, INTEREST 20
EARNINGS, AND ANY OTHER INFORMATION THAT THE COMPTROLLER REQUIRES. 21

SUBTITLE 3. TAX PAYMENT. 22

7.7–301. 23

(A) EACH TAXABLE INSTITUTION REQUIRED TO FILE A R ETURN UNDER § 24
7.7–201 OF THIS TITLE SHALL PAY THE ENDOWMENT EXCISE TAX WITH THE RETURN 25
IN THE MANNER THAT THE COMPTROLLER REQUIRES. 26

(B) IF A CORPORATION , OTHER THAN A NONSTOC K, NONPROFIT 27
CORPORATION, IS REQUIRED TO PAY T HE ENDOWMENT EXCISE TAX , PERSONAL 28
LIABILITY FOR THE TA X AND INTEREST AND P ENALTIES ON THE TAX EXTENDS TO 29
10 HOUSE BILL 1271

ANY OFFICER OF THE C ORPORATION WHO EXERCISES DIRECT CONTROL OVER ITS 1
FISCAL MANAGEMENT. 2

(C) IF A LIMITED LIABILIT Y COMPANY , OR LIMITED LIABILITY 3
PARTNERSHIP, INCLUDING A LIMITED PART NERSHIP REGISTERED A S A LIMITED 4
LIABILITY LIMITED PARTNERSHIP, IS REQUIRED TO PAY T HE ENDOWMENT EXCISE 5
TAX, PERSONAL LIABILITY FOR THE TAX AND INTEREST AND PENALTIES ON THE TAX 6
EXTENDS TO ANY PERSO N WHO EXERCISES DIRE CT CONTROL OVER THE FISCAL 7
MANAGEMENT OF THE LI MITED LIABILITY COMP ANY OR LIMITED LIABI LITY 8
PARTNERSHIP. 9

13–201. 10

In this subtitle, “tax information” means: 11

(4) any information contained in: 12

(xviii) a tobacco tax return; [or] 13

(xix) a transportation services assessment return; OR 14

(XX) AN ENDOWMENT EXCISE TAX RETURN. 15

13–825. 16

(J) THE COMPTROLLER MAY REQUI RE AN INSTITUTION SU BJECT TO THE 17
ENDOWMENT EXCISE TAX TO POST SECURITY FOR THE ENDOWMENT EXCISE TAX IN 18
THE AMOUNT THE COMPTROLLER DETERMINES. 19

13–1001. 20

(H) AN INSTITUTION THAT I S REQUIRED TO FILE A N ENDOWMENT EXCISE 21
TAX RETURN AND THAT WILLFULLY FAILS TO F ILE THE RETURN AS RE QUIRED 22
UNDER TITLE 7.7 OF THIS ARTICLE IS G UILTY OF A MISDEMEAN OR AND ON 23
CONVICTION IS SUBJECT TO A FINE NOT EXCEEDING $5,000 OR IMPRISONMENT NOT 24
EXCEEDING 5 YEARS OR BOTH. 25

13–1002. 26

(a) A person who willfully files a false alcoholic beverage tax return OR AN 27
INSTITUTION THAT WILLFULLY FILES A FALSE ENDOWMENT EXCISE TAX RETURN is 28
guilty of perjury and, on conviction, is subject to the penalty for perjury. 29

(b) A person, including an officer of a corporation, who willfully files a false digital 30
advertising gross revenues tax return, a false financial institution franchise tax return, a 31
HOUSE BILL 1271 11

false public service company franchise tax retur n, or a false income tax return with the 1
intent to evade the payment of tax due under this article is guilty of perjury and, on 2
conviction, is subject to the penalty for perjury. 3

(c) Subsections (a) and (b) of this section apply to the alcoholic beverage , digital 4
advertising gross revenues, ENDOWMENT EXCISE TAX , financial institution franchise, 5
public service company franchise, and income taxes. 6

SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 7
as follows: 8

Article – Tax – General 9

13–508. 10

(a) Within 30 days after the date on which a notice of assessment of the 11
admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, digital 12
advertising gross revenues tax, ENDOWMENT EXCISE TAX, income tax, motor carrier tax, 13
motor fuel tax, public service company franchise tax, financial institution franchise tax, 14
sales and use tax, or tobacco tax is mailed, a person or governmental unit against which 15
the assessment is made may submit to the tax collector: 16

(1) an application for revision of the assessment; or 17

(2) except for the public service company franchise tax, if the assessment 18
is paid, a claim for refund. 19

(c) The Comptroller or an employee of the Comptroller’s office expressly 20
designated by the Comptroller promptly: 21

(1) (i) shall hold an informal hearing on a person’s or governmental 22
unit’s admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, 23
digital advertising gross revenues tax, ENDOWMENT EXCISE TAX, income tax, motor 24
carrier tax, motor fuel tax, sales and use tax, or tobacco tax application for revision or claim 25
for refund under subsection (a) of this section; and 26

(ii) after the hearing: 27

1. shall act on the application for revision; and 28

2. may assess any additional tax, penalty, and interest due; 29
and 30

(2) shall mail to the person or governmental unit a notice of final 31
determination. 32

13–509. 33
12 HOUSE BILL 1271

(a) Notwithstanding a person’s failure to file a timely application for revision or 1
claim for refund of an assessment of the admissions and amusement tax, alcoholic beverage 2
tax, boxing and wrestling tax, digital advertising gross revenues tax, ENDOWMENT 3
EXCISE TAX, income tax, motor carrier tax, motor fuel tax, sales and use tax, or tobacco tax 4
under § 13–508(a) of this subtitle, the Comptroller or the Comptroller’s designee may issue 5
an order decreasing or abating an assessment to correct an erroneous assessment. 6

SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 7
as follows: 8

Article – Tax – General 9

13–508. 10

(a) Within 30 days after the date on which a notice of assessment of the 11
admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, digital 12
advertising gross revenues tax, ENDOWMENT EXCISE TAX, hotel rental tax, income tax, 13
motor carrier tax, motor fuel tax, public service company franchise tax, financial institution 14
franchise tax, sales and use tax, or tobacco tax is mailed, a person or governmental unit 15
against which the assessment is made may submit to the tax collector: 16

(1) an application for revision of the assessment; or 17

(2) except for the public service company franchise tax, if the assessment 18
is paid, a claim for refund. 19

(c) The Comptroller or an employee of the Comptroller’s office expressly 20
designated by the Comptroller promptly: 21

(1) (i) shall hold an informal hearing on a person’s or governmental 22
unit’s admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, 23
digital advertising gross revenues tax, ENDOWMENT EXCISE TAX, hotel rental tax, income 24
tax, motor carrier tax, motor fuel tax, sales and use tax, or tobacco tax application for 25
revision or claim for refund under subsection (a) of this section; and 26

(ii) after the hearing: 27

1. shall act on the application for revision; and 28

2. may assess any additional tax, penalty, and interest due; 29
and 30

(2) shall mail to the person or governmental unit a notice of final 31
determination. 32

13–509. 33
HOUSE BILL 1271 13

(a) Notwithstanding a person’s failure to file a timel y application for revision or 1
claim for refund of an assessment of the admissions and amusement tax, alcoholic beverage 2
tax, boxing and wrestling tax, digital advertising gross revenues tax, ENDOWMENT 3
EXCISE TAX, hotel rental tax, income tax, motor carrier tax, motor fuel tax, sales and use 4
tax, or tobacco tax under § 13–508(a) of this subtitle, the Comptroller or the Comptroller’s 5
designee may issue an order decreasing or abating an assessment to correct an erroneous 6
assessment. 7

SECTION 5. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 8
applicable to all taxable years beginning after December 31, 2025. 9

SECTION 6. AND BE IT FURTHER ENACTED, That Section 4 of this Act shall take 10
effect July 1, 2027, the effective date of Chapter 638 of the Acts of the General Assembly of 11
2025. If the effective date of Chapter 638 is amended, Section 4 of this Act shall take effect 12
on the taking effect of Chapter 638. 13

SECTION 7. AND BE IT FURTHER ENACTED, That, except as provided in Section 14
6 of this Act, this Act shall take effect July 1, 2026 . Section 3 of this Act shall remain 15
effective until the taking effect of Section 4 of this Act. If Section 4 of this Act takes effect, 16
Section 3 of this Act, with no further action required by the General Assembly, shall be 17
abrogated and of no further force and effect. 18