Bill > HB352

This bill, the Budget Reconciliation and Financing Act of 2025, is a comprehensive piece of legislation that makes numerous changes to Maryland state law across multiple areas. Here's a summary of the key provisions: This bill makes several significant fiscal and tax-related modifications. On the tax front, it adjusts income tax rates, with new brackets and rates for both individual and corporate income taxes. For individuals, it increases tax rates for higher income brackets, with a new top marginal rate of 6.50% for incomes over $1,000,000. The bill also introduces a 2% additional tax on net capital gains for higher-income earners. The legislation includes multiple fund transfers and budget adjustments. For instance, the Governor is authorized to transfer funds from various special funds to the General Fund, including transfers from the Strategic Energy Investment Fund, the Resilient Maryland Revolving Loan Fund, and several other state accounts. These transfers are designed to help balance the state budget and provide financial flexibility. The bill makes changes to various state programs and funds, including modifications to the Cannabis Regulation and Enforcement Fund, adjustments to the Medicaid Deficit Assessment, and updates to several tax credit programs. It also includes provisions for specific state agencies and programs, such as creating new funds and adjusting funding mechanisms. Transportation-related changes are significant, including alterations to vehicle registration fees, titling taxes, and adjustments to how transportation revenues are allocated. The bill also includes provisions for specific infrastructure and development projects. There are notable changes to state income tax deductions, including modifications to standard deductions and itemized deduction limitations. The bill also includes provisions for specific tax credits, such as updates to the Child Tax Credit and a new Senior Tax Credit. The legislation includes several sunset provisions and effective dates for different sections, with most major changes taking effect on July 1, 2025, or January 1, 2026. Some provisions have specific implementation dates or are tied to particular fiscal years. The bill also contains unique provisions, such as requiring an independent audit of the Prince George's County Board of Education and allowing Montgomery County to take over certain nursing home survey responsibilities from the state health department. Overall, this is a comprehensive fiscal bill that touches on numerous aspects of Maryland's state budget, tax code, and governmental operations, with wide-ranging implications for state finances and various state programs.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0352?ys=2025RS