Maryland House Bill HB1142

Maryland 2026 Regular Session

• Introduced: 2/11/26
• Refer: 2/11/26
• Report Pass: 3/21/26
• Engrossed: 3/23/26
• Refer: 3/23/26
• Report Pass: 4/1/26
• Enrolled: 4/3/26
• Chaptered: 4/14/26
• Passed: 4/14/26

Caption

Task Force to Modernize County and Municipal Revenue Structures

Summary

HB1142 establishes a temporary Task Force to Modernize County and Municipal Revenue Structures. The task force is charged with studying how county and municipal governments in Maryland currently raise revenue, what additional or unused revenue sources may be available, what authority local governments have to expand revenue options, and how other states structure local revenue systems. It must also consider the affordability effects of any new local revenue sources, including impacts on the cost of goods and services and the overall cost of living. The task force is composed of legislators, state fiscal and tax officials, representatives of the Maryland Municipal League and the Maryland Association of Counties, and one Baltimore City representative. It is staffed by the Department of Legislative Services, serves without compensation other than expense reimbursement, and must report its findings and recommendations to the Governor and specified legislative committees by December 1, 2026. The act takes effect July 1, 2026, and automatically expires June 30, 2027.

Impact

The bill does not directly change tax rates or local revenue authority in current law; instead, it creates a one-year study commission to evaluate county and municipal revenue structures and recommend whether local governments should be given authority to increase or diversify revenue sources. Its practical effect is to place local finance, taxation, and affordability questions under formal review by state and local stakeholders, with a report due to the Governor and key budget and tax committees for possible future legislation.

Sentiment

The bill appears to have broad legislative support and moved successfully through both chambers, passing the House 101-27 and the Senate 34-10 before being signed by the Governor as Chapter 17. The vote margins suggest general agreement on the need to study local revenue modernization, though the non-unanimous votes indicate some reservations about the policy direction or the prospect of expanding local revenue tools.

Contention

The main point of contention is likely the possibility that the task force could recommend new or expanded county and municipal revenue sources, which may raise concerns about higher taxes, fees, or added costs for residents and businesses. The bill specifically requires analysis of affordability and cost of living, suggesting lawmakers were attentive to worries that new revenue options could burden taxpayers. Opposition likely came from members skeptical of expanding local taxing authority or concerned about the economic impact of additional local revenue mechanisms.