• The Goal: To evaluate and modernize the "fiscal toolbox" of local governments.
• The Focus: The task force will study current revenue sources, explore new options used in other states, and assess the impact of potential changes on the cost of living and overall affordability for residents.

1. Governor’s Signature: The bill now heads to the Governor’s desk for a formal signature.
2. Effective Date: Once signed, the Act is scheduled to take effect on July 1, 2026.
3. Task Force Convening: The newly created body will formally convene shortly after the effective date to begin its study.  

A final report of findings and recommendations is due to the General Assembly by December 1, 2026.

We have some incredible momentum to share. Thanks to your collective advocacy and outreach, the push for HB 1142 is working. We are pleased to report that the House of Delegates has passed the bill in time for the crossover deadline. This is a massive step toward modernizing municipal revenue and ensuring our cities and towns have the fiscal tools they need for the future.

We owe a huge thank you to Chair Jheanelle Wilkins and the members of the House of Delegates for their leadership and for recognizing the urgency of this issue.

Last week, the Maryland Municipal League (MML) testified before the House Appropriations Committee in strong support of HB 559. This bill represents a critical turning point in our years-long advocacy to restore and protect Highway User Revenues (HUR) for Maryland’s cities and towns.

For years, municipal governments have operated under temporary "funding bridges" that increased our share of gas tax and vehicle fee revenues. However, under current law, those increases are set decrease after Fiscal Year 2027, from the 3.0% allocation of Highway User Revenues to 2.4%.

For nearly 60 years, Maryland’s municipal revenue structure has remained largely unchanged, forcing our cities and towns to rely on property taxes for approximately 50% of their general fund budgets. This over-dependence is no longer sustainable.

We have a critical opportunity to change this. HB 1142, MML's priority bill sponsored by Ways and Means Chair Jheanelle Wilkins, establishes a Task Force to Modernize County and Municipal Revenue Structures. This "blue-ribbon" commission will study alternative revenue sources - such as those used in other states - to ensure our communities can remain fiscally resilient without placing the entire burden on property owners.

Last week, the Maryland Municipal League (MML) testified before the House Ways and Means Committee on HB 594. While MML supports the bill - which seeks to return a portion of sales tax revenue to the City of Baltimore - we officially testified as Support with Amendment.

Currently, HB 594 would require the Comptroller to pay the City of Baltimore one-third of the sales and use tax revenues collected within its borders. In the hearing, MML staff highlighted how municipalities are the economic hubs of the state, where 34% of all sales tax revenue is generated despite only accounting for 5% of the state’s land mass.

Last week, MML staff testified before the House Government, Labor, and Elections Committee in strong support of HB 99, a bill vital to ensuring that cities and towns have the final say in how their newly annexed land is developed. The legislation is sponsored by Delegate Schindler, a former municipal official from Hagerstown, Maryland.

Under current law, municipalities often face a "zoning freeze" after an annexation, regularly referred to as “The 5-year Rule.” Even when a town has a clear, community-vetted comprehensive plan, they are frequently barred from implementing higher-density or different land uses for five years unless they receive express permission from the county.

MML seeks amendments to SB 64 & HB 10 in support of public notice modernization.

Last week, MML staff testified before the House Judiciary and Senate Judicial Proceedings committees in favor of a critical modernization package for SB 64 (and cross-filed HB 10).

As the 2026 legislative session continues, the Maryland Municipal League is actively monitoring several key bills scheduled for testimony next week. To ensure the municipal perspective is accurately represented in the record, we are inviting member cities and towns to submit written comments on the following items. These contributions are vital to documenting the local impact of proposed state policy before the committees of jurisdiction. 

The specific bills and their respective hearing dates are listed below:  

On Wednesday, January 21, Governor Wes Moore formally introduced his budget bills (SB 282/HB 390 & SB 284/HB 392) for the State of Maryland’s 2027 fiscal year. See our municipal analysis below.

The Maryland Comptroller's Office and the University of Maryland Robert H. Smith School of Business recently released a new report that explores how federal workforce trends and budget shifts may impact local economies, public sector employment, and private industry.

Key Findings:

On Tuesday, April 22, HB 322 was signed into law by Governor Wes Moore and went into effect immediately.

This session, MML worked with Senator Cheryl Kagan and Delegate Greg Wims to introduce legislation in response to the State Board of Elections' (SBE) declaration in the fall of 2024 that SBE does not have the legal authority to enter agreements with municipalities to lease voting equipment or provide other support. Those bills were Senate Bill 88 and House Bill 322.

This session, MML worked with Senator Cheryl Kagan and Delegate Greg Wims to introduce legislation in response to the State Board of Elections' (SBE) declaration in the fall of 2024 that SBE does not have the legal authority to enter agreements with municipalities to lease voting equipment or provide other support. Those bills were Senate Bill 88 and House Bill 322.

House Bill 322 received its final vote for passage around 8:30 p.m. on the final day of session, Sine Die. As emergency legislation, this new law will go into effect as soon as it is signed by the Governor. As amended, the bill also shortens the amount of lead time required to join the State ballot from 18 months to 9 months.

On Monday, Delegate Ryan Spiegel presented MML's priority legislation on local food and beverage authority to the House Ways & Means Committee. Delegate Spiegel, a past MML President, is the sponsor of HB 997, which would enable local jurisdictions to charge up to a 3% fee on food and beverages sold for on-site consumption. 

In his testimony, Delegate Spiegel highlighted the fact that local governments have limited revenue tools and are already too reliant on property taxes. He also noted Maryland receives more than 43.5 million visitors each year who use local government services but whose spending doesn't support those same services. That burden falls almost exclusively on Maryland homeowners.