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.

Municipalities often provide the police, the paved roads, the lighting, and the snow removal that make retail centers successful. Yet, under the current system, the state keeps ALL of the sales tax generated by that local activity. This places an overwhelming burden on property taxes, which is at the heart of our League priority this year to study municipal revenue sources.

What’s next?

With the state facing significant fiscal discussions in 2027, MML believes this is the time to study and support local revenue modernization efforts. The League’s priority bill, HB 1142, has a hearing in the Ways and Means Committee on February 24. Testimony for HB 1142 is due Friday, February 20.

For more information relating to this legislation, please contact Justin Fiore, Director of Advocacy and Public Policy, [email protected].