Title 20. Taxes and Development Impact Fees — Subtitle 6. Sales and Use Taxes; User Fees; Gross Receipts Tax
Statutes in effect as of October 1, 2026.
Md. Code Ann., Local Gov't § 20-601 (2026)
Title 20. Taxes and Development Impact Fees
Subtitle 6. Sales and Use Taxes; User Fees; Gross Receipts Tax
§ 20–601LinkCopy Citation
(a)
Except as provided in subsection (b) of this section, a county may impose a sales or use tax on controlled dangerous substances as defined in § 5–101 of the Criminal Law Article.
(b)
A county may not impose a sales or use tax under subsection (a) of this section on sales by a person who complies with Title 5, Subtitle 3 of the Criminal Law Article.
Md. Code Ann., Local Gov't § 20-602 (2026)
Title 20. Taxes and Development Impact Fees
Subtitle 6. Sales and Use Taxes; User Fees; Gross Receipts Tax
§ 20–602LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Beverage” does not include an alcoholic beverage, as defined in § 5–101 of the Tax – General Article, if the alcoholic beverage is sold for consumption off the premises.
(3)
“Convention center facility” means a convention center of at least 150,000 net square feet that is used for the holding of conventions, trade shows, meetings, displays, entertainment shows, or similar events but does not have lodging facilities.
(4)
“Food” has the meaning stated in § 11–206 of the Tax – General Article.
(5)
“Premises” has the meaning stated in § 11–206 of the Tax – General Article.
(6)
“Public local law” has the meaning stated in Article XI–F, § 1 of the Maryland Constitution.
(7)
“Resort area” means any portion of a county, as specified by the county commissioners of the county, that:
(i)
by reason of natural, scenic, or man–made attractions or development, has an unusual influx of visitors, sojourners, and temporary residents; and
(ii)
by reason of the influx, requires municipal services in unusual number or magnitude.
(8)
“Substantial grocery or market business” has the meaning stated in § 11–206 of the Tax – General Article.
(9)
“Taxable price” has the meaning stated in § 11–101 of the Tax – General Article.
(b)
(1)
Except as otherwise provided in this section, the county commissioners of a code county, by public local law, may impose a tax on the sale of food and beverages in a resort area in the county for the sole purpose of providing revenues to pay the principal and interest on bonds issued relating to the construction, reconstruction, repair, renovation, or equipping of a convention center facility in the resort area.
(2)
The total oustanding principal amount of the bonds issued by the county commissioners for the purpose stated in paragraph (1) of this subsection may not exceed $20,000,000.
(c)
(1)
Before passing a public local law imposing a tax under this section or altering the amount of the tax, the county commissioners shall hold a public hearing.
(2)
Notice of the hearing shall be published in at least one newspaper of general circulation in the county not less than 3 or more than 14 days before the hearing.
(3)
The notice shall state the subject of the hearing and the time and place that the hearing will occur.
(d)
A tax imposed under this section does not apply to:
(1)
a sale of food that is exempt from the State sales and use tax under § 11–206 of the Tax – General Article;
(2)
a sale of food or beverages for consumption off the premises if sold by a vendor that operates a substantial grocery or market business at the same location where the food is sold, even if the sale is subject to the State sales and use tax under Title 11 of the Tax – General Article; or
(3)
a sale of food or beverages in a vending machine.
(e)
A tax imposed under this section may not exceed 1% of the taxable price of a sale of food or beverages that are subject to the tax.
(f)
A tax imposed under this section shall be:
(1)
collected from the buyer on behalf of the county by the vendor who makes a sale that is subject to the tax; and
(2)
held in trust by the vendor for the county.
(g)
(1)
A vendor required to collect a tax imposed under this section shall file a return with the county on or before the 21st day of each month.
(2)
A return required under this section:
(i)
shall be made on the form that the county requires; and
(ii)
shall contain the information that the county requires, including:
(1)
the gross proceeds of the vendor during the preceding month from sales that are subject to the tax;
(2)
the taxable price of sales for the month on which the tax is computed; and
(3)
the tax due.
(h)
(1)
A vendor who makes a sale that is subject to a tax imposed under this section shall pay the tax that the vendor collects for the sale with the return that covers the period in which the vendor makes the sale.
(2)
For the expense of collection and remittance of a tax imposed under this section, a vendor who timely files a return and remits the tax may deduct an amount equal to 1.5% of the gross tax collected by the vendor.
(i)
The county commissioners may provide by law for:
(1)
the imposition of interest and penalties for failure to pay the tax as required; and
(2)
collection of unpaid tax, interest, or penalties.
(j)
(1)
The Comptroller shall provide a county that imposes a tax under this section with information to help the county verify liability for the tax.
(2)
The Comptroller may charge a county a reasonable fee for the cost of providing information under this subsection.
(k)
From the total revenue derived from a tax imposed under this section, the county commissioners shall:
(1)
deduct a reasonable percentage not to exceed 5% for the cost of imposing and collecting the tax; and
(2)
after the deduction in item (1) of this subsection, distribute the revenue to the appropriate authority to be deposited in a sinking fund and used for the sole purpose of paying the principal and interest on bonds issued relating to a convention center facility in accordance with subsection (b) of this section.
(l)
(1)
If any tax is imposed by the county commissioners of a county in accordance with this section, the authority to impose the tax in the county shall terminate at the end of the month in which sufficient revenues have been generated to pay in full the maturing principal of and interest on any bonds issued relating to a convention center in accordance with subsection (b) of this section.
(2)
The county commissioners shall notify the Comptroller as to the month in which the authority to impose the tax expires.
Md. Code Ann., Local Gov't § 20-603 (2026)
Title 20. Taxes and Development Impact Fees
Subtitle 6. Sales and Use Taxes; User Fees; Gross Receipts Tax
§ 20–603LinkCopy Citation
(a)
By ordinance, Anne Arundel County may impose a sales or use tax on:
(1)
fuel and utilities used by commercial and industrial businesses;
(2)
residential, commercial, and industrial telephone service; and
(3)
space rentals other than space rentals for the docking or storing of boats.
(b)
(1)
Any revenues collected under subsection (a)(1) and (2) of this section in the City of Annapolis shall be allocated and distributed in equal amounts to the City of Annapolis and to Anne Arundel County.
(2)
Except as otherwise provided in this subsection, any revenue generated in the City of Annapolis from the tax on space rentals shall be collected and retained by the City of Annapolis.
(3)
Except as provided in paragraph (6) of this subsection, any revenue generated in the City of Annapolis from the hotel tax shall be collected by Anne Arundel County.
(4)
From any revenue generated in the City of Annapolis from the hotel tax, Anne Arundel County shall distribute:
(i)
3% to a special fund to be used only to provide funds to the Annapolis Art in Public Places Commission;
(ii)
3% to a special fund to be used only to provide funds to the Arts Council of Anne Arundel County, Inc.;
(iii)
17% to a special fund to be used only to provide funds to Visit Annapolis and Anne Arundel County, Inc.; and
(iv)
3% to the Affordable Housing Trust Fund established under § 20.30.070 of the Code of the City of Annapolis to be used only for housing assistance payments.
(5)
After making the distributions required under paragraph (4) of this subsection, the balance of the revenue generated in the City of Annapolis from the hotel tax shall be distributed to the City of Annapolis.
(6)
(i)
Anne Arundel County may authorize the City of Annapolis to collect revenue generated in the City of Annapolis from the hotel tax.
(ii)
If Anne Arundel County authorizes the City of Annapolis to collect revenue generated in the City of Annapolis from the hotel tax, the City of Annapolis shall distribute a percentage of the revenue in accordance with paragraph (4) of this subsection and retain the balance of the revenue generated.
(c)
(1)
From the county’s share of revenue from the hotel tax, Anne Arundel County shall distribute:
(i)
3% to a special fund to be used only to provide funds to the Arts Council of Anne Arundel County, Inc.; and
(ii)
17% to a special fund to be used only to provide funds to Visit Annapolis and Anne Arundel County, Inc.
(2)
After making the distributions required under paragraph (1) of this subsection, the balance of the county’s share of revenue from the hotel tax shall be credited to the general fund of the county.
(d)
(1)
On or before November 1 each year, the Annapolis Art in Public Places Commission shall report on its use of hotel tax revenue during the preceding fiscal year to:
(i)
the Mayor and City Council of the City of Annapolis; and
(ii)
in accordance with § 2–1257 of the State Government Article, the Senate Budget and Taxation Committee, the House Committee on Ways and Means, and the members of the General Assembly representing the City of Annapolis.
(2)
If the Annapolis Art in Public Places Commission fails to submit the report required under paragraph (1) of this subsection, the City of Annapolis may withhold from appropriation special funds dedicated to the Commission under this section.
(e)
(1)
On or before November 1 each year, the Arts Council of Anne Arundel County, Inc. and Visit Annapolis and Anne Arundel County, Inc. shall report on their use of hotel tax revenue during the preceding fiscal year to:
(i)
the Anne Arundel County Executive;
(ii)
the Mayor and City Council of the City of Annapolis; and
(iii)
in accordance with § 2–1257 of the State Government Article, the Senate Budget and Taxation Committee, the House Committee on Ways and Means, and the members of the General Assembly representing Anne Arundel County.
(2)
The County Auditor of Anne Arundel County:
(i)
may conduct an audit of the financial records of the Arts Council of Anne Arundel County, Inc. or Visit Annapolis and Anne Arundel County, Inc.; and
(ii)
shall report any audit findings under item (i) of this paragraph to the governing body of Anne Arundel County.
(3)
(i)
The City of Annapolis or Anne Arundel County may withhold from appropriation special funds dedicated to the Arts Council of Anne Arundel County under this section if the Council fails to:
(1)
submit the report required under paragraph (1) of this subsection; or
(2)
correct any audit findings identified under paragraph (2) of this subsection.
(ii)
The City of Annapolis or Anne Arundel County may withhold from appropriation special funds dedicated to Visit Annapolis and Anne Arundel County, Inc. under this section if Visit Annapolis and Anne Arundel County, Inc. fails to:
(1)
submit the report required under paragraph (1) of this subsection; or
(2)
correct any audit findings identified under paragraph (2) of this subsection.
(f)
The hotel tax authorized under this section does not apply to the sale of a right to occupy a room or lodgings as a transient guest at a dormitory or other lodging facility that:
(1)
is operated solely in support of the headquarters, a training facility, a conference facility, an awards facility, or the campus of a corporation or other organization;
(2)
provides lodging solely for employees, contractors, vendors, and other invitees of the corporation that owns the dormitory or lodging facility; and
(3)
does not offer lodging services to the general public.
Md. Code Ann., Local Gov't § 20-604 (2026)
Title 20. Taxes and Development Impact Fees
Subtitle 6. Sales and Use Taxes; User Fees; Gross Receipts Tax
§ 20–604LinkCopy Citation
(a)
(1)
Subject to paragraph (2) of this subsection and except as provided in subsection (b) of this section, by ordinance, the County Council for Prince George’s County may impose a sales or use tax on any form of energy or fuel used in Prince George’s County.
(2)
The percentage of a tax imposed under this section may not exceed the percentage in effect on July 1, 1992.
(b)
(1)
Subject to paragraph (2) of this subsection, this section does not apply to:
(i)
motor vehicle fuels;
(ii)
fuels used in the production of other forms of energy that are subject to the tax imposed under this section; or
(iii)
energy or fuel used by a municipality in Prince George’s County.
(2)
Notwithstanding any other law, subject to paragraph (3) of this subsection, the sale or use of energy or fuel used by the Washington Suburban Sanitary Commission in Prince George’s County is not exempt from the tax imposed under this section.
(3)
The County Council for Prince George’s County may provide exemptions from the tax imposed under this section that are in addition to the exemptions under paragraph (1) of this subsection.
(c)
The County Council for Prince George’s County:
(1)
shall provide for the refund of the tax imposed under this section to a person who is eligible for:
(i)
a tax credit under § 9–102 or § 9–104 of the Tax – Property Article; or
(ii)
weatherization or energy assistance from the State; and
(2)
may provide for the refund of the tax imposed under this section to a person who is not eligible for a refund under item (1) of this subsection.
(d)
(1)
Except as provided in paragraph (2) of this subsection, the tax imposed under this section:
(i)
shall be either a percentage of the net energy or fuel bill or an amount per unit of fuel or energy;
(ii)
shall be itemized on the bill;
(iii)
may not be considered part of the price charged for the energy or fuel; and
(iv)
is not subject to the approval of the Public Service Commission.
(2)
(i)
A heating fuel vendor may include the tax imposed under this section as part of the price charged for fuel oil.
(ii)
If the local tax is included in the price, the fuel oil bill shall state that clearly.
(3)
The vendor shall collect the tax on behalf of Prince George’s County.
(e)
The net proceeds of the tax imposed under this section shall be used only:
(1)
for funding of the public ethics provisions under Title 5, Subtitle 8, Part V of the General Provisions Article; or
(2)
to meet the county’s funding requirements under § 5–235(a) of the Education Article.
Md. Code Ann., Local Gov't § 20-605 (2026)
Title 20. Taxes and Development Impact Fees
Subtitle 6. Sales and Use Taxes; User Fees; Gross Receipts Tax
§ 20–605LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Mobile Telecommunications Sourcing Act” means the federal Mobile Telecommunications Sourcing Act, 4 U.S.C. §§ 116 through 126.
(3)
“Service address” means:
(i)
except as provided in item (ii) of this paragraph, the location of the telecommunications equipment to which a call is charged, regardless of where the call is billed or paid; and
(ii)
in the case of mobile telecommunications service, the location of the customer’s place of primary use as defined in the Mobile Telecommunications Sourcing Act.
(b)
(1)
Except as otherwise provided in this section, a tax imposed under this section applies to telecommunications service that:
(i)
originates and terminates in Prince George’s County; or
(ii)
originates or terminates in Prince George’s County and has a service address in Prince George’s County.
(2)
Notwithstanding paragraph (1) of this subsection, and except as provided in paragraph (3) of this subsection, for a customer bill to which the amendment made by the Mobile Telecommunications Sourcing Act applies, a tax imposed under this section applies to mobile telecommunications service to the fullest extent authorized under § 117(b) of the Mobile Telecommunications Sourcing Act.
(3)
A tax imposed under this section does not apply to:
(i)
telecommunications service provided to a person to whom a sale of tangible personal property or a taxable service is exempt under § 11–204 or § 11–220 of the Tax – General Article;
(ii)
a prepaid telephone calling arrangement that is taxable under Title 11 of the Tax – General Article; or
(iii)
telephone lifeline service provided under § 8–201 of the Public Utilities Article.
(c)
By ordinance, the County Council for Prince George’s County shall impose at least one of the following:
(1)
a sales and use tax on telecommunications service in Prince George’s County at a rate not less than 5%; or
(2)
an excise tax on telecommunications service in Prince George’s County at a rate not exceeding $3.50 monthly for each telephone line.
(d)
(1)
A tax imposed under this section shall be itemized on each bill for telecommunications service in Prince George’s County.
(2)
Each vendor providing telecommunications service in Prince George’s County shall collect the tax on behalf of and remit the tax to the county.
(e)
(1)
The net proceeds of the revenue from a tax imposed under this section shall be used as follows:
(i)
at least 90% of the net proceeds shall be used for operating expenditures for the Prince George’s County school system; and
(ii)
the remainder shall be used for:
(1)
cash payments for capital expenditures for school renovation projects approved by the Prince George’s County Board of Education and Prince George’s County; or
(2)
payment of debt service on bonds issued by the governing body of Prince George’s County for school renovation projects approved by the Prince George’s County Board of Education and Prince George’s County.
(2)
The proceeds provided under this section for the Prince George’s County school system may be used to meet the county’s funding requirements under § 5–235(a) of the Education Article.
(3)
Among the expenditures to be funded from the proceeds, the Prince George’s County Board of Education shall consider:
(i)
a program to serve disruptive, delinquent, or low–performing students in grades 6 through 12 that:
(1)
provides proof of progress in reading and mathematics;
(2)
is designed to include small learning communities and areas of support services provided by community–based providers; and
(3)
is operated by an educational provider with substantial experience serving the type of student population served by the program in separate school facilities provided by the education provider, unless the public school system decides otherwise;
(ii)
a Spanish language immersion program to serve at least 450 students in kindergarten through grade 5 in order to address long–term labor needs for bilingual employees; and
(iii)
addressing any needs related to capital improvements or renovations that are the result of the deferral of maintenance or other deterioration of school facilities.
(4)
On or before December 31 of each year, the governing body of Prince George’s County shall submit a report detailing the expenditure of revenues generated from a tax imposed under this section to the Department of Legislative Services, the Prince George’s County school system, and the Prince George’s County Delegation of the General Assembly.
Md. Code Ann., Local Gov't § 20-606 (2026)
Title 20. Taxes and Development Impact Fees
Subtitle 6. Sales and Use Taxes; User Fees; Gross Receipts Tax
§ 20–606LinkCopy Citation
(a)
Except as provided in subsection (b) of this section, by ordinance, the County Commissioners of St. Mary’s County may impose a sales or use tax on any form of energy or fuel used or consumed in St. Mary’s County.
(b)
This section does not apply to:
(1)
motor vehicle fuels;
(2)
fuels used in the production of other forms of energy that are subject to the tax imposed under this section; or
(3)
energy or fuel used by a municipality in St. Mary’s County.
(c)
Before the County Commissioners of St. Mary’s County impose a tax under this section, the county commissioners shall hold a public hearing that:
(1)
is advertised twice at least 10 days before the hearing in a newspaper of general circulation in St. Mary’s County; and
(2)
is not part of an annual budget hearing.
(d)
(1)
The County Commissioners of St. Mary’s County may provide for the refund of the tax imposed under this section to a person who is eligible for:
(i)
a tax credit under § 9–102 or § 9–104 of the Tax – Property Article; or
(ii)
weatherization or energy assistance from the State.
(2)
The county commissioners may provide for the refund of the tax imposed under this section to additional classes of persons based on:
(i)
age;
(ii)
income; or
(iii)
charitable endeavors.
(e)
(1)
The tax imposed under this section shall be either:
(i)
a percentage of the net energy or fuel bill; or
(ii)
an amount per unit of fuel or energy.
(2)
(i)
If the tax imposed under this section is imposed as a percentage of the net energy or fuel bill, the rate of the tax may not exceed 5%.
(ii)
If the tax imposed under this section is imposed as an amount per unit of fuel or energy, the amount per unit for each separate classification of energy or fuel, for any fiscal year, may not exceed 5% of a fraction:
(1)
the numerator of which is the sum of the total amounts billed in St. Mary’s County by all vendors for energy or fuel subject to the tax within that classification during the calendar year that ends before the beginning of the fiscal year; and
(2)
the denominator of which is the total number of units of energy or fuel subject to the tax within that classification used or consumed in St. Mary’s County during the calendar year that ends before the beginning of the fiscal year.
(3)
The County Commissioners of St. Mary’s County may establish different rates of tax on energy or fuel used for residential, commercial, and industrial purposes.
(f)
(1)
Except as provided in paragraph (2) of this subsection, the tax imposed under this section:
(i)
shall be itemized on the bill;
(ii)
may not be considered part of the price charged for the energy or fuel; and
(iii)
is not subject to the approval of the Public Service Commission.
(2)
(i)
A heating fuel vendor may include the tax imposed under this section as part of the price charged for fuel oil.
(ii)
If the tax imposed under this section is included in the price, the fuel oil bill shall state that clearly.
(3)
The vendor shall collect the tax on behalf of St. Mary’s County.
(g)
(1)
On or before February 1 of each year, a vendor of energy or fuel subject to the tax imposed under this section shall certify to the County Commissioners of St. Mary’s County, for each separate classification of energy or fuel for the preceding calendar year:
(i)
the total amount billed by the vendor in St. Mary’s County; and
(ii)
the total number of units sold by the vendor in St. Mary’s County.
(2)
If the tax imposed under this section is imposed as an amount per unit of fuel or energy, the county commissioners shall determine the maximum amount per unit allowed under subsection (e)(2)(ii) of this section based on the totals certified by vendors under paragraph (1) of this subsection.
Md. Code Ann., Local Gov't § 20-607 (2026)
Title 20. Taxes and Development Impact Fees
Subtitle 6. Sales and Use Taxes; User Fees; Gross Receipts Tax
§ 20–607LinkCopy Citation
(a)
By ordinance, the governing body of Wicomico County may impose a user fee on the charges for all ticketed events held at the Wicomico County Youth and Civic Center.
(b)
(1)
Subject to paragraph (2) of this subsection, the governing body of Wicomico County shall set the rate of the user fee.
(2)
The rate of the user fee may not exceed 5% of the charge for a ticket to an event held at the Wicomico County Youth and Civic Center.
(c)
Any revenue from the user fee authorized under this section shall be dedicated to the physical improvement of and renovations to the Wicomico County Youth and Civic Center.
Md. Code Ann., Local Gov't § 20-608 (2026)
Title 20. Taxes and Development Impact Fees
Subtitle 6. Sales and Use Taxes; User Fees; Gross Receipts Tax
§ 20–608LinkCopy Citation
(a)
By ordinance, a municipality may impose a user fee on charges for the docking and storage of boats.
(b)
(1)
Subject to paragraph (2) of this subsection, a municipality shall set the rate of the user fee.
(2)
The rate of the user fee may not exceed 5% of the rental charges for the docking and storage of boats.
(c)
The total amount of user fees charged per boat slip under this section may not exceed $100 annually.
(d)
A municipality shall use any revenue from the user fee authorized under this section:
(1)
to maintain and enhance:
(i)
water quality;
(ii)
water and wastewater treatment facilities;
(iii)
marinas;
(iv)
law enforcement;
(v)
public safety; or
(vi)
fire services; or
(2)
for land acquisition and the related construction and maintenance of public facilities to enhance public use and water access.
Md. Code Ann., Local Gov't § 20-609 (2026)
Title 20. Taxes and Development Impact Fees
Subtitle 6. Sales and Use Taxes; User Fees; Gross Receipts Tax
§ 20–609LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
(i)
“Heavy equipment property” means construction, earthmoving, or industrial equipment that is mobile, including any attachment for the heavy equipment.
(ii)
“Heavy equipment property” includes:
(1)
a self–propelled vehicle that is not designed to be driven on a highway; and
(2)
industrial electrical generation equipment, industrial lift equipment, industrial material handling equipment, or other similar industrial equipment.
(3)
“Short–term lease or rental” means the lease or rental of heavy equipment property for a period of 365 days or less.
(b)
(1)
Except as provided in subsection (c) of this section, there is a tax at a rate of 2% on the gross receipts from the short–term lease or rental of heavy equipment property by a person whose principal business is the short–term lease or rental of heavy equipment property at retail.
(2)
A person is in the principal business of short–term lease or rental of heavy equipment property if:
(i)
the largest segment of total rental receipts of the business is from the short–term lease or rental of heavy equipment property; and
(ii)
the business is described under Code 532412 of the North American Industry Classification System as published by the United States Census Bureau.
(c)
The tax imposed under this section does not apply to:
(1)
a business located in a county or municipality that does not impose a personal property tax; or
(2)
a short–term lease or rental of heavy equipment property to the federal government, the State, a county, or a municipality.
(d)
(1)
A person who owns a business with gross receipts subject to the tax under this section shall collect the tax from the rental customer and remit the tax as provided in this subsection.
(2)
The tax is payable quarterly and due by the last day of the month after the end of the quarter.
(3)
A person who owns a business with gross receipts subject to the tax under this section shall remit the tax collected to:
(i)
the county in which the business is located, if that location is not within a municipality; or
(ii)
the county and municipality in which the business is located in proportion to the personal property tax rate of the county and municipality, if that location is within a municipality.
(4)
Notwithstanding any other law and except as otherwise provided in this section, the gross receipts tax imposed under this section shall be administered and collected according to the laws applicable to the personal property tax under the Tax – Property Article.
(e)
A person who owns a business with gross receipts subject to the tax under subsection (b) of this section shall submit to the Department of Assessments and Taxation a report on personal property as required under § 11–101 of the Tax – Property Article.