This Week: Local Revenue Task Force Takes Up Income, Sales Tax Options

Maryland’s Task Force to Modernize County and Municipal Revenue Structures will meet Friday, October 30, with a new round of discussions on local income and sales tax options, tax administration, and the factors shaping local fiscal capacity.

The virtual meeting begins at 8:30 am, and will stream live on the Maryland General Assembly website. The agenda includes presentations from the Department of Legislative Services and the Comptroller of Maryland, followed by discussion of local fiscal capacity and State support for Baltimore City.

DLS will open with a presentation on income and sales tax revenue options. The discussion follows the Task Force’s October 2 meeting, where members reviewed retail delivery fees, a local meals tax, municipal hotel taxes, special property tax rates, and other approaches to expanding local revenue flexibility.

The Comptroller’s Office will then brief members on local tax administration. The presentation comes as the Task Force continues examining not only which revenue tools local governments may use, but how those taxes would be administered and collected.

DLS will also present on factors affecting local fiscal capacity and State financial support for Baltimore City.

The October 30 meeting comes as the Task Force nears its December 1 reporting deadline.

The General Assembly created the panel through HB 1142 during the 2026 legislative session to study county and municipal revenue structures and recommend potential changes.

At its October 2 meeting, members also heard that counties already carry a significant share of major local service costs. Counties have accounted for roughly two-thirds of school capital spending over the past two decades, while Maryland counties also fund a broad range of services that differ from the responsibilities assigned to local governments in other states.

MACo has consistently emphasized that any new local revenue tools should expand county options and reflect local service responsibilities, not replace existing State support or create new cost shifts. County leaders reinforced that message during the Task Force’s September public hearing.

The Task Force has one additional meeting scheduled for November 30 before its December 1 deadline.

Stay tuned to Conduit Street for more information.

Useful Links

Task Force to Modernize County and Municipal Revenue Structures

HB 1142 – Task Force to Modernize County and Municipal Revenue Structures

Previous Conduit Street Coverage

Revenue Task Force Weighs School Funding Gaps, New Local Options

County Leaders Push for Revenue Flexibility, Guard Against Cost Shifts

Revenue Task Force Weighs Options for Modernizing Local Revenues

Local Revenue Task Force Sets Second Meeting for August 31

MACo Backs Task Force To Modernize Local Revenue Structures