SB0405 • 2026

Sales and Use Tax - Distribution - City of Baltimore

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Senator M. Washington (By Request - Baltimore City Administration )
Last action: 2026-02-03
Official status: In the Senate - Hearing 2/11 at 2:00 p.m.
Effective date: 2026-07-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Sales and Use Tax - Distribution - City of Baltimore

Altering the distribution of sales and use tax revenues to require the Comptroller to pay to the City of Baltimore one-third of the revenues from sales and use taxes collected and remitted from sales that occur within the City of Baltimore.

What This Bill Does

Altering the distribution of sales and use tax revenues to require the Comptroller to pay to the City of Baltimore one-third of the revenues from sales and use taxes collected and remitted from sales that occur within the City of Baltimore.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-02-03 Senate
Hearing 2/11 at 2:00 p.m.
2026-01-29 Senate
First Reading Budget and Taxation
Maryland General Assembly
Text - First - Sales and Use Tax - Distribution - City of Baltimore

Official Summary Text

Altering the distribution of sales and use tax revenues to require the Comptroller to pay to the City of Baltimore one-third of the revenues from sales and use taxes collected and remitted from sales that occur within the City of Baltimore.

Current Bill Text

Read the full stored bill text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0405*

SENATE BILL 405
Q4 6lr1496
CF HB 594
By: Senator M. Washington (By Request – Baltimore City Administration)
Introduced and read first time: January 29, 2026
Assigned to: Budget and Taxation

A BILL ENTITLED

AN ACT concerning 1

Sales and Use Tax – Distribution – City of Baltimore 2

FOR the purpose of altering the distribution of sales and use tax revenues to require the 3
Comptroller to pay to the City of Baltimore a certain amount of sales and use tax 4
revenues derived from retail sales that occur within the City of Baltimore; and 5
generally relating to the distribution of sales and use tax revenues. 6

BY repealing and reenacting, with amendments, 7
Article – Tax – General 8
Section 2–1303 9
Annotated Code of Maryland 10
(2022 Replacement Volume and 2025 Supplement) 11

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13

Article – Tax – General 14

2–1303. 15

After making the distributions required under §§ 2 –1301 through 2 –1302.5 of this 16
subtitle, the Comptroller shall pay: 17

(1) revenues from the hotel surcharge into the Dorchester County 18
Economic Development Fund established under § 10 –130 of the Economic Development 19
Article; 20

(2) TO THE CITY OF BALTIMORE, ONE–THIRD OF THE REVENUE S 21
FROM SALES AND USE TAXES COLLECTED AND REMITTED FROM RETAIL SALES THAT 22
OCCUR WITHIN THE CITY OF BALTIMORE; 23
2 SENATE BILL 405

(3) to the Blueprint for Maryland’s Future Fund established under § 5–206 1
of the Education Article, the following percentage of the remaining sales and use tax 2
revenues: 3

(i) for fiscal year 2023, 9.2%; 4

(ii) for fiscal year 2024, 11.0%; 5

(iii) for fiscal year 2025, 11.3%; 6

(iv) for fiscal year 2026, 11.7%; and 7

(v) for fiscal year 2027 and each fiscal year thereafter, 12.1%; and 8

[(3)] (4) the remaining sales and use tax revenue into the General Fund 9
of the State. 10

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 11
1, 2026. 12