Bill > HB1469

This bill establishes a Sugary Beverage Distributor Tax beginning July 1, 2026, which imposes a tax of 2 cents per ounce on sugary beverages, syrups, and powders sold by distributors in Maryland. The tax will be adjusted annually based on the Consumer Price Index for Urban Consumers, with the tax rate increasing each year unless there is no growth or a decline in the index. Distributors must register with the Comptroller and file monthly returns detailing their sales. The revenue from this tax will be distributed primarily to the Healthy School Meals for All Fund, with the first $189 million going to this fund each fiscal year, the next $50 million allocated to the Child Care Scholarship Program, and any remaining funds going to the state's General Fund. The bill defines sugary beverages as beverages containing added sugars or non-nutritive sweeteners, with specific exemptions for natural fruit and vegetable juices, milk, infant formula, medical beverages, and water. Distributors who fail to comply with the tax requirements may face penalties, including fines and potential imprisonment. The tax is designed to generate funding for school meal programs and child care scholarships while discouraging consumption of sugary beverages.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1469?ys=2025RS