“Our cities are the hubs of tourism and commerce, yet we lack the modern tools to capture a fair share of that activity to pay for the police, roads, and parks that support it,” said Theresa Kuhns, CEO of the League. “Maryland is one of only six states that fails to share tax revenue from the sale of goods and services with local governments or allow those governments to collect it themselves. Because we lack the modern tools to capture a fair share of that commerce, the fiscal burden of supporting these high-traffic economies falls almost entirely on the local property owner. It's not sustainable.”

Joining Kuhns in support of the bill was a diverse panel of municipal leaders who shared firsthand accounts of the "fiscal handcuffs" created by the current system. Maryland local leaders highlighted that while cities and towns provide the infrastructure that supports Maryland’s hospitality and retail sectors, the state’s 60-year-old revenue model - unchanged since 1967 - prevents them from benefiting from that economic activity.

HB 1142 aims to address these inequities by establishing a path toward modernizing revenue streams. MML 2025-2026 President, Mayor Todd J. Nock, City of Pocomoke City shares, “As I sat before the committee, I was thinking about Princess Anne, Snow Hill, Berlin, Crisfield, and of course Pocomoke. Communities working every day to serve their residents with limited and outdated revenue tools. We saw testimony from the smallest of Maryland communities to its largest - it is time to have the data to aid our discussions and solutions. Strong municipalities strengthen Maryland.”