Maryland prices and inflation

Wages and cash benefits can be components of household money income. Census income is measured before taxes, so tax relief alone is not an increase in this statistic; the provision does not determine the statewide median. This relationship does not establish causation. Actions after the fact’s measurement period cannot explain its earlier value.

Retained Maryland evidence context: Median household income. This record’s connection to the topic does not establish an effect on the measured result.

Increasing the State minimum wage rate to $18 for calendar year 2028 for large employers and for calendar year 2029 for small employers; and increasing, beginning January 1, 2029, and January 1, 2030, for large employers and small employers, respectively, the State minimum wage rate in effect for certain periods of time based on annual growth in a certain consumer price index, as determined by the Commissioner of Labor and Industry.

The relationship concerns proposed violence-prevention funding. The tax proposal did not become law and does not establish fewer firearm deaths. This relationship does not establish causation. Actions after the fact’s measurement period cannot explain its earlier value.

Retained Maryland evidence context: Firearm deaths. This record’s connection to the topic does not establish an effect on the measured result.

HB 387 Department of Legislative Services Maryland General Assembly 2025 Session FISCAL AND POLICY NOTE First Reader House Bill 387 (Delegate Mireku - North, et al. ) Ways and Means Comprehensive Community Safety Funding Act This bill establishes an 11% firearm excise tax on the gross receipts of a federally licensed firearms dealer derived from (1) the retail sale of firearms in the State and (2) the retail sale of firearms to State residents from a federally licensed firearms dealer that is located outside the State. The bill requires specified distributions of the revenue from the excise tax. The bill also provides for the filing of specified tax returns and for the administration of the tax by the Comptroller. The bill takes effect July 1, 2027. Fiscal Summary State Effect: Special fund revenues increase by $15.0 million in FY 2028 and by $16.2 million in FY 2030. Special fund expenditures for administrative costs increase by $2.2 million in FY 2028 and by $0.6 million in FY 2030. Future year expenditures reflect annualization and inflation. ($ in millions) FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 SF Revenue $0 $0 $15.0 $15.6 $16.2 SF Expenditure $0 $0 $2.2 $0.6 $0.6 Net Effect $0.0 $0.0 $12.8 $14.9 $15.5 Note: () = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease Local Effect: None. Small Business Effect: Potential meaningful. Small businesses that sell firearms will be subject to the new excise tax. However, some portion of the cost of the new tax may be passed on to the consumers through increased prices. HB 387/ Page 2 Analysis Bill Summary: The bill establishes an 11% firearm excise tax on the gross receipts of the sale of firearms in the State by a federally licensed firearms dealer located both within the State and outside the State. The bill specifies the distribution of revenue from the excise tax, administration of the excise tax by the Comptroller, filing of excise tax returns by licensed dealers, and the paying of excise taxes by licensed dealers. The excise tax does not apply to the sale of a firearm to (1) a law enforcement agency; (2) the armed forces of the United States; (3) the National Guard; (4) a law enforcement officer; (5) a retired law enforcement officer; or (6) an individual for the exclusive purpose of competition shooting or match shooting. The excise tax applies to (1) a retail sale made on or after July 1, 2027, by a federally licensed firearms dealer that is a large retailer and (2) a retail sale made by any other federally licensed firearms dealer on or after July 1, 2028. For a federally licensed firearms dealer that is located outside the State, the excise tax only applies if the federally licensed firearms dealer, during the previous calendar year or the current calendar year (1) derives gross revenue from the sale of firearms to residents of the State that exceeds $100,000 or (2) sells firearms to residents of the State for delivery into the State in 200 or more separate transactions. Distribution of the Firearm Excise Tax Revenue Revenue from the firearm excise tax must be distributed equally to the following:  the Coordinated Community Supports Partnership Fund;  the Maryland Trauma Physician Services Fund;  the R Adams Cowley Shock Trauma Center at the University of Maryland Medical System;  the Maryland Violence Intervention and Prevention Program Fund;  the Survivors of Homicide Victims Grant Program within the G overnor’s Office of Crime Prevention and Policy; and  the Center for Firearm Violence Prevention and Intervention within the Maryland Department of Health. The bill specifies that it is the intent of the General Assembly that the excise tax revenue supplement, and not supplant, any other funding for these funds required by law. HB 387/ Page 3 Firearm Excise Tax Returns A federally licensed firearms dealer must complete, under oath, and file an excise tax return with the Comptroller (1) on or before the 25th day of the month that follows the month in which the person sells any firearms within the boundaries of the State or to residents of the State and (2) if specified by the Comptroller, by regulation, on other dates for each month in which the licensee does not sell any firearms in the State or to residents of the State. A person required to file an excise tax return must file with the return an attachment that states any information required by the Comptroller to determine the gross receipts derived from the sales of firearms in the State or to residents of the State. A person required to file an excise tax return must maintain records of the firearms sold in the State or to residents of the State and the basis for the calculation of the excise tax owed. Payment of Firearm Excise Taxes Each person required to file an excise tax return must pay the firearm excise tax in the manner required by the Comptroller, with the return that covers the period in which the person sold firearms in the State or to residents of the State. If a corporation, other than a nonstock, nonprofit corporation, is required to pay the excise tax, personal liability for the tax and interest and penalties on the tax extends to any officer of the corporation who exercises direct control over its fiscal management. If a limited liability company, or limited liability partnership, including a limited partnership registered as a limited liability limited partnership, is required to pay the excise tax, personal liability for the tax and interest and penalties on the tax extends to any person who exercises direct control over the fiscal management of the limited liability company or limited liability partnership. The Comptroller may require a person subject to the firearms excise tax to post security for the excise tax in the amount that the Comptroller determines. A person who willfully fails to file a required firearm excise tax return is guilty of a misdemeanor and, on conviction, is subject to a fine of up to $5,000 or imprisonment of up to five years or both. Definitions A federally licensed firearms dealer is a person licensed by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives to deal in firearms. Gross receipts are defined as the total amount of the sale or lease or rental price of the retail sale by a person, valued in money, whether received in money or otherwise, without any deduction for (1) the cost of the property sold; (2) the cost of the materials used, labor or

The relationship concerns proposed violence-prevention funding. The tax proposal did not become law and does not establish fewer firearm deaths. This relationship does not establish causation. Actions after the fact’s measurement period cannot explain its earlier value.

Retained Maryland evidence context: Firearm deaths. This record’s connection to the topic does not establish an effect on the measured result.

HB 935 Department of Legislative Services Maryland General Assembly 2024 Session FISCAL AND POLICY NOTE First Reader House Bill 935 (Delegate Mireku - North, et al. ) Ways and Means Comprehensive Community Safety Funding Act This bill establishes an 11% firearm, firearm accessory, and ammunition (FFAA) excise tax on the gross receipts of a federally licensed firearms dealer derived from the sales of firearms, firearm accessories, and ammunition in the State. The bill requires specified distributions of the revenue from the excise tax. The bill provides for the filing of specified tax returns and for the administration of the tax by the Comptroller. The bill takes effect July 1, 2025. Fiscal Summary State Effect: Special fund revenues increase by approximately $22.4 million in FY 2026 and by $25.0 million in FY 2029. Special fund expenditures for administrative costs increase by $3.7 million in FY 2026 and by $716,500 in FY 2029. Future year expenditures reflect annualization and inflation. ($ in millions) FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 SF Revenue $0 $22.4 $23.2 $24.1 $25.0 SF Expenditure $0 $3.7 $0.7 $0.7 $0.7 Net Effect $0.0 $18.7 $22.6 $23.4 $24.3 Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease Local Effect: None. Small Business Effect: Potential meaningful. Small businesses that sell firearms, firearm accessories, and ammunition will be subject to the new excise tax. However, some portion of the cost of the new tax may be passed on to the consumers through increased prices. HB 935/ Page 2 Analysis Bill Summary: The bill establishes an 11% FFAA excise tax on the gross receipts of the sale of firearms, firearm accessories, and ammunition in the State by a federally licensed firearms dealer. The bill specifies the distribution of revenue from the excise tax, administration of the excise tax by the Comptroller, filing of excise tax returns by licensed dealers, and the paying of excise taxes by licensed dealers. Distribution of the Firearm, Firearm Accessory, and Ammunition Excise Tax Revenue Revenue from the FFAA excise tax must be distributed as follows:  44% to the Maryland Trauma Physician Services Fund;  29% to the R Adams Cowley Shock Trauma Center at the University of Maryland Medical System;  23% to the Violence Intervention and Prevention Program Fund;  2% to the Survivors of Homicide Victims Grant Program within the G overnor’s Office of Crime Prevention and Policy; and  2% to the Center for Firearm Violence Prevention and Intervention within the Maryland Department of Health. The bill specifies that it is the intent of the General Assembly that the excise tax revenue supplement, and not supplant, any other funding for these funds required by law. Firearm, Firearm Accessory, and Ammunition Excise Tax Returns A federally licensed firearms dealer must complete, under oath, and file an FFAA excise tax return with the Comptroller: (1) on or before the 25th day of the month that follows the month in which the person sells any firearms, firearm accessories, or ammunition within the boundaries of the State; and (2) if specified by the Comptroller, by regulation, on other dates for each month in which the licensee does not sell any firearms, firearm accessories, or ammunition in the State. A person required to file an excise tax return must file with the return an attachment that states any information required by the Comptroller to determine the gross receipts derived from the sales of firearms, firearm accessories, and ammunition in the State. A person required to file an excise tax return must maintain records of the firearms, firearms accessories, and ammunition sold in the State and the basis for the calculation of the FFAA excise tax owed. HB 935/ Page 3 Payment of Firearm, Firearm Accessory, and Ammunition Excise Taxes Each person required to file an excise tax return must pay the FFAA excise tax in the manner required by the Comptroller, with the return that covers the period in which the person sold firearms, firearm accessories, or ammunition in the State. If a corporation, other than a nonstock, nonprofit corporation, is required to pay the FFAA excise tax, personal liability for the tax and interest and penalties on the tax extends to any officer of the corporation who exercises direct control over its fiscal management. If a limited liability company, or limited liability partnership, including a limited partnership registered as a limited liability limited partnership, is required to pay the FFAA excise tax, personal liability for the tax and interest and penalties on the tax extends to any person who exercises direct control over the fiscal management of the limited liability company or limited liability partnership. The Comptroller may require a person subject to the FFAA excise tax to post security for the excise tax in the amount that the Comptroller determines. A person who willfully fails to file a required FFAA excise tax return is guilty of a misdemeanor and, on conviction, is subject to a fine up to $5,000 or imprisonment up of to five years or both. Definitions A federally licensed firearms dealer is a person licensed by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives to deal in firearms. A firearm accessory is: (1) a magazine or magazine loader; (2) a firearm scope or optic; (3) a stock; (4) a grip; (5) a handguard; or (6) body armor. Gross receipts are defined as the total amount of the sale or lease or rental price of the retail sale by a person, valued in money, whether received in money or otherwise, without any deduction for: (1) the cost of the property sold; (2) the cost of the materials used, labor or service cost, interest paid, losses, or any other expense; or (3) the cost of transportation of the property. Gross receipts do not include: (1) cash discounts allowed and taken on sales; (2) the sale price of property returned by customers when that amount is refunded in cash or credit unless the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned; (3) the price received for labor or services used in installing or applying the property sold; and (4) the amount of any tax imposed by the United States, the State, a county, or a municipality on or with respect to retail sales whether imposed on the person or the consumer.

Wages and cash benefits can be components of household money income. Census income is measured before taxes, so tax relief alone is not an increase in this statistic; the provision does not determine the statewide median. This relationship does not establish causation. Actions after the fact’s measurement period cannot explain its earlier value.

Retained Maryland evidence context: Median household income. This record’s connection to the topic does not establish an effect on the measured result.

Establishing a minimum wage of $25.00 to be paid by county boards of education to certain education support professionals beginning July 1, 2025; adjusting the minimum wage for education support professionals for inflation each year; and defining "education support professional" as a noncertificated public school employee designated as part of a nonsupervisory bargaining unit.

Gross rent includes contract rent and tenant-paid utilities. Rental protections, assistance, and housing supply concern components of rental-market conditions; they do not set Maryland’s median rent. This relationship does not establish causation. Actions after the fact’s measurement period cannot explain its earlier value.

Retained Maryland evidence context: Median gross rent. This record’s connection to the topic does not establish an effect on the measured result.

Requiring the Department of Housing and Community Development to provide one-time grants to the three counties with the highest cost of living, to be used to expand affordable housing; and requiring, for fiscal year 2024, the Governor to include in the annual budget an appropriation of $60,000,000 to the Department, to carry out the Act.

These proposed generation-development programs concern the non-nuclear portion of the electricity-generation mix. The capacity targets are prospective and do not establish delivered output or a change in the measured nuclear share. This relationship does not establish causation. Actions after the fact’s measurement period cannot explain its earlier value.

Retained Maryland evidence context: Nuclear share of in-state electricity generation. This record’s connection to the topic does not establish an effect on the measured result.

HB 398 Department of Legislative Services Maryland General Assembly 2025 Session FISCAL AND POLICY NOTE First Reader House Bill 398 (Delegate Charkoudian) Economic Matters Abundant Affordable Clean Energy - Procurement and Development (AACE Act) This bill establishes or modifies multiple incentives and programs for clean energy and energy storage systems and redirects specified funds into an escrow account established by the Public Service Commission (PSC) (and supervised by the Maryland Energy Administration (MEA)) for ratepayer refunds or credits. A presently existing obligation or contract right may not be impaired in any way by the bill. The bill takes effect June 1, 2025. Fiscal Summary State Effect: No effect assumed in FY 2025. Special fund expenditures for PSC and the Office of People’s Counsel (OPC) increase by at least $2.6 million annually from FY 2026 through 2030; special fund revenues increase correspondingly from assessments imposed on public service companies. Special fund revenues and expenditures for MEA decrease significantly beginning as early as FY 2026. General/special fund expenditures for the Department of Natural Resources (DNR) increase by $0.9 million annually from FY 2026 through 2030. General fund expenditures for the Department of General Services (DGS) may increase beginning in FY 2026. General fund revenues and special fund revenues for the Blueprint for Maryland’s Future Fund (BMFF) decrease beginning in FY 2026. The effect on State expenditures for electricity is discussed in the Additional Comments section. ($ in millions) FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 GF Revenue ( - ) ( - ) ( - ) ( - ) ( - ) SF Revenue $2.6 $2.6 $2.6 $2.6 $2.6 GF Expenditure - - - - - SF Expenditure $2.6 $2.6 $2.6 $2.6 $2.6 GF/SF Exp. $0.9 $0.9 $0.9 $0.9 $0.9 Net Effect ( - ) ( - ) ( - ) ( - ) ( - ) Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease HB 398/ Page 2 Local Effect: Local government finances and operations, including municipal electric utilities, are significantly affected, as discussed below. This bill imposes a mandate on a unit of local government. Small Business Effect: Meaningful. Analysis Bill Summary: Broadly, the bill:  establishes two rounds of applications and approvals by PSC for 150 megawatts of distribution-connected energy storage devices;  establishes a process in PSC for specified nuclear facilities to receive zero-emission credits (ZECs);  establishes the policy of the State as it relates to coordinated planning for offshore wind transmission, makes various changes to existing planning and evaluation processes, and makes a minor change to the existing DGS offshore wind procurement process;  requires PSC to establish an escrow account for ratepayer refunds or credits and redirects nearly all alternative compliance payment (ACP) revenues to the escrow account instead of the Strategic Energy Investment Fund (SEIF);  establishes the Utility Scale SREC-II Program in PSC to provide incentives for the development of at least 3,000 megawatts of utility scale solar generation;  establishes the Small Solar Facilities Incentive Program in PSC to provide incentives for the development of at least 3,000 megawatts of small-scale solar generation;  establishes a priority order for renewable energy credits (RECs) used for compliance with the State’s Renewable Energy Portfolio Standard (RPS) ;  establishes two rounds of applications and approvals by PSC for 1,600 megawatts of front-of-meter transmission energy storage devices;  establishes a competitive process overseen by PSC for the procurement of SREC-IIs from qualifying (utility-scale solar) systems and REC-IIs from small hydroelectric systems and land-based wind systems, funded through a nonbypassable surcharge;  authorizes fast-track procurements for specified consultants;  redirects 75% of specified franchise tax and sales and use tax revenues associated with qualified data centers that are operational on or after January 1, 2026, to the ratepayer refund escrow account established by PSC under the bill; and  establishes the General Assembly’s support of the extension or renewal of the federal license for the Calvert Cliffs Nuclear Power Plant. HB 398/ Page 3 Distribution-Connected Energy Storage Devices The General Assembly finds and declares that the State has a goal of reaching 150 megawatts of distribution-connected energy storage devices. PSC must notify each electric company of its proportion of the goal by July 1, 2025, and by July 1, 2026. The bill establishes two rounds of applications and related approval and construction timelines. For the first round, PSC must require each electric company to develop and implement a plan to achieve its goal by November 1, 2025. PSC must evaluate each plan, accept public comments on each plan, and issue an order for each plan that either approves the plan or approves the plan with modifications by March 1, 2026. The energy storage devices that are constructed or procured under the plan must be operational by August 1, 2027. The deadlines for the second round are one year later. PSC may extend a deadline for good cause. PSC must require each plan to demonstrate that the construction or procurement of each energy storage device (1) is beneficial in terms of cost, including demonstration of any avoided or delayed transmission, distribution, and generation costs and avoided emissions and (2) can be completed within 18 months after the plan is approved. The bill specifies requirements for third parties and electric companies that construct and/or own energy storage devices under the above provisions. Zero-Emission Credits for Nuclear Subject to specified requirements, a beneficial nuclear facility may submit an application to PSC to receive ZECs. “Beneficial nuclear facility” means a nuclear reactor that is located in and provides environmental benefits to the State. A “ ZEC ” means a payment equal to the generation attributes of one megawatt-hour of electricity that is derived from a beneficial nuclear facility, calculated as specified. The bill specifies three general requirements:  a beneficial nuclear facility may not receive ZECs during any period in which the facility receives zero-emission nuclear power production tax credits under § 13105 of the Inflation Reduction Act of 2022;  PSC may not offer ZECs after 2055; and  to be eligible to receive ZECs, a beneficial nuclear facility must maintain a neutral position in any labor organizing that takes place at the facility. After notice and an opportunity for a hearing, PSC must approve or deny an application within nine months after the application is filed. PSC may approve an application in whole or in part and subject to any limitations and qualifications that PSC considers necessary and in the public interest.

Gross rent includes contract rent and tenant-paid utilities. Rental protections, assistance, and housing supply concern components of rental-market conditions; they do not set Maryland’s median rent. This relationship does not establish causation. Actions after the fact’s measurement period cannot explain its earlier value.

Retained Maryland evidence context: Median gross rent. This record’s connection to the topic does not establish an effect on the measured result.

Adding gas and electric utility services to the types of services for which landlords of buildings that contain six or more residential units are required to provide a written notice to a tenant, before the initiation of a lease and each term thereafter, notifying the tenant of the total utility costs billed to the landlord in the immediately preceding year, disaggregated by utility type; and applying certain requirements relating to payment of utility services to landlords of buildings that contain five or fewer residential dwelling units.

The displayed price is EIA’s six-jurisdiction Central Atlantic regional proxy. Maryland gasoline taxes, supply, or sales rules concern one component and do not set pump prices across the region. This relationship does not establish causation. Actions after the fact’s measurement period cannot explain its earlier value.

Retained Maryland evidence context: Central Atlantic regular gasoline price. This record’s connection to the topic does not establish an effect on the measured result.

Requiring the Comptroller to calculate a certain sales and use tax equivalent rate under the motor fuel tax in a certain manner; applying the sales and use tax to a sale or use of certain digital products; requiring the Comptroller to distribute the sales and use tax revenue on the sale of digital products to the Transportation Trust Fund; requiring the Department of Transportation to apply to the United States Department of Transportation to participate in the Surface Transportation System Funding Alternatives Program; etc.