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.

This solution is commonplace in the rest of the country. Forty-five states and the District of Columbia either share or provide a local option for sales and use tax; or levy a local food and beverage fee. D.C. adds 4% to their sales tax for food and beverage. Virginia adds up to 4% at the county level, while municipalities are uncapped, some with rates as high as 7.5% on top of their 6% sales tax. 

Local Governments are simply asking for the authority to have these conversations at the local level and make the best choice for their community.

If you have any questions about HB 997 (or its crossfile SB 324), please contact Justin Fiore, Deputy Director of Advocacy and Public Affairs at [email protected].