• The numerator of which is $2,250,000; and
• The denominator of which is the total of all credits applied for by all applicants for the calendar year for the purchase of Maryland-mined coal that will be used in Maryland.

This Act takes effect July 1, 2006, and will be applicable to all taxable years beginning after December 31, 2006.

Extensions for Filing Corporate Income Tax Returns
Senate Bill 484 Senate Bill 484 (Chapter 134, Acts of 2006) - Income Tax - Extensions for Filing Returns

This Act amends TG §10-823 to provide that the Comptroller may extend the time to file an income tax return up to seven months for a corporation.

This Act takes effect July 1, 2006, and will be applicable to all taxable years beginning after December 31, 2005.

Community Investment Tax Credit
Senate Bill 1076 (Chapter 447, Acts of 2006) - Department of Housing and Community Development - Neighborhood and Community Assistance Program - Community Investment Tax Credit

This Act amends §6-404(a) of the Housing and Community Development Article to expand the Community Investment Tax Credit to include contributions of real property to an approved project.

This Act also amends §6-404(b) of the Housing and Community Development Article to increase the maximum credit for any taxable year to the lesser of $250,000 or the total amount of tax otherwise payable by the business entity for the taxable year.

This Act takes effect October 1, 2006, and will be applicable to all taxable years beginning after December 31, 2006.

Electric Industry Restructuring

Senate Bill 1 (Chapter 5, Acts of 2006)

Senate Bill 1 was enacted as an emergency bill over the veto of Governor Robert L. Ehrlich, Jr. during the 2006 Special Session of the General Assembly.

This Act repeals TG § 10-712, which had provided that a public utility could claim a credit against the state income tax in an amount equal to 60 percent of the total property taxes paid by the public utility on its operating property in the state that was used to generate electricity or steam for sale.

This Act adds § 7-538 to the Public Utilities Article. This new section provides that a transaction that involves the transfer and ownership of rate stabilization property and the receipt of rate stabilization charges are exempt from state and local income, sales, franchise, gross receipts, and other taxes or similar charges.

"Rate stabilization charge" is defined to mean that portion of a usage-based nonbypassable rate, charge, or similar appropriate mechanism for the provision, availability, or termination of electric service, approved in connection with a rate stabilization plan, that a qualified rate order of the Public Service Commission authorizes to be imposed for the recovery of rate stabilization costs.

"Qualified rate order" is defined to mean an order of the Public Service Commission approving one or more qualified rate stabilization charges.

"Rate stabilization property" is defined to mean the right, title, and interest of an electric company or assignee in a qualified rate order. Rate stabilization property is defined to include all rights in, to, and under a qualified rate order, including the right to impose and collect rate stabilization charges and rights to revenues, collections, claims, payment, money, or other property and amounts arising from the imposition of rate stabilization charges under the qualified rate order, and also, in the hands of an assignee, the right to require the electric company to provide electric services and collect and remit the rate stabilization charges authorized in the qualified rate order.

This Act took effect June 23, 2006, and is applicable to all taxable years beginning after December 31, 2005.

Offset of Refunds and Payments for Federal Nontax Liabilities
House Bill 448 (Chapter 577, Acts of 2006) - Revenue Collection - Offsets

This Act adds to subtitle 9 of the Tax-General Article a new Part VI, Federal Nontax Liabilities - Withholding of Tax Refunds and Payments, consisting of TG §13-930 through TG §13-932.

This Act defines the following terms:

"Federal official" means a unit or official of the federal government charged with the collection of nontax liabilities payable to the federal government pursuant to 31 U.S.C. §3716.

"Nontax liability due the State" means a liability certified by the Secretary of Budget and Management to the Comptroller.

"Refund" means an amount described as a refund of tax under the provisions of law that authorize its payment.

"Vendor payment" means any payment, other than a refund, made by the state to any person, includes any expense reimbursement to an employee of the state and does not include a person's salary, wages, or pension.

This Act provides that a federal official may certify to the Comptroller the existence of a person's delinquent nontax liability owed by the person to the federal government, and may request the Comptroller to withhold any refund and vendor payment to which the person is entitled. A federal official may certify and request the Comptroller to withhold a refund or vendor payment only if the laws of the United States:

• Allow the Comptroller, on behalf of the state, to certify tax and nontax liabilities due to the state;
• Allow the Comptroller, on behalf of the state, to enter into a reciprocal agreement with the United States, pursuant to which the federal official would be required to offset federal payments to collect delinquent debts owed to the state; and
• Provide for the payment of the amount withheld to the state.

The Comptroller must apply a refund or vendor payment received from a federal official according to the priorities under TG §13-918.

This Act provides that a certification by a federal official to the Comptroller must include:

• The full name and address of the person and any other names known to be used by the person;
• The Social Security number or federal tax identification number;
• The amount of the nontax liability; and
• A statement that the debt is past due and legally enforceable in the amount certified and that there are no legal barriers to collection by offset.

The Comptroller must determine if a person for whom a certification is received is due a refund of Maryland tax or a vendor payment. As to any person due a refund or vendor payment, the Comptroller must:

• Withhold any refund and vendor payment that is due a person whose name has been certified by a federal official;
• Notify the person of the amount withheld in accordance with the certification by a federal official of the existence of a liability;
• Pay to the federal official the lesser of the entire refund and vendor payment or the amount certified;
• Pay any refund and vendor payment in excess of the certified amount to the person; and
• Withhold amounts from subsequent refunds and vendor payments due the person if the initial refund and vendor payment is less than the certified amount.

If the individual filed a joint income tax return and the debt certified by the federal official is not the liability of both parties to the joint income tax return, the Comptroller cannot withhold or pay to the federal official that portion of the income tax refund attributable to the individual not owing the debt.

This Act also amends TG §13-203 to provide that tax information may be disclosed to a federal official to the extent necessary to administer the new Part VI of Subtitle 9 of the Tax-General Article.

This Act also amends TG §13-918 to add, at the end of the list of the order in which the Comptroller must honor income tax refund interception requests, a request for intercept made by a federal official under the new Part VI of Subtitle 9 of the Tax-General Article.

This Act also amends TG §13-918 to provide that the Comptroller must honor vendor payment interception requests in the same order of priority for honoring income tax refund interception requests.

This Act takes effect July 1, 2006.

Tax Credit for Businesses That Create New Jobs in Washington County
House Bill 731 (Chapter 191, Acts of 2006) - Washington County - Tax Credit for Businesses That Create New Jobs

This Act amends §9-230(a) of the Tax-Property Article to expand the definition of "new permanent full-time position" to include, in Washington County, a contract position of definite duration lasting at least 12 months with an unlimited renewal option, for purposes of the requirements set forth in §9-230(b) to qualify for property and state tax credits.

This Act takes effect July 1, 2006, and will be applicable to all taxable years beginning after December 31, 2006.

Interest Rate for Refunds
House Bill 859 (Chapter 587, Acts of 2006) - Tax Procedure - Refunds - Interest Rate

This Act amends TG §13-604(b) to provide that on or before October 1 of each year, the Comptroller shall set the annual interest rate for the next calendar year on refunds and moneys owed to the state as the percent, rounded to the nearest whole number, that is the percent that equals the greater of:

• 13 percent; or
• Three percentage points above the average prime rate of interest quoted by commercial banks to large businesses during the state's previous fiscal year, based on determination by the Board of Governors of the Federal Reserve Bank.

This Act takes effect July 1, 2006.

U.S. Government Employees' Foreign Earned Income House Bill 994 (Chapter 368, Acts of 2006) - Income Tax - U.S. Government Employees' Foreign Earned Income

This Act adds new §10-207(w) to the Tax-General Article, to provide a new subtraction modification, only in tax years 2007, 2008 and 2009, for "foreign earned income" that is included in federal adjusted gross income. In this Act, "foreign earned income" is defined to mean foreign earned income within the meaning of §911(b)(1) of the Internal Revenue Code, subject to the limitation under §911(b)(2) of the Internal Revenue Code, and this Act also provides that "foreign earned income" includes amounts paid by the United States or an agency of the United States to an employee of the United States or of an agency of the United States.

The amount of the subtraction is the amount of the foreign earned income of an individual earned as an employee of the United States or an agency of the United States, but the subtraction:

• Does not include any amount subtracted under any other provision of TG §10-207; and
• May not exceed $3,500 for any taxable year.

This Act takes effect July 1, 2006.

Filing Requirements for Employer Withholding Tax Returns
House Bill 1248 (Chapter 613, Acts of 2006) - Tax - Filing Requirements for Employer Withholding Tax Returns

This Act amends TG §10-822(b) to add a provision that if a person required under TG §10-906 to withhold income tax is allowed to file federal withholding tax returns on a monthly basis, the person may apply to the Comptroller for a waiver from the requirement under TG §10-822(b)(1) that if a person was required to withhold $15,000 or more for the preceding tax year, the person must complete and file an income tax withholding return with the Comptroller within three business days following each payroll that causes the total accumulated tax withheld to equal or exceed $700.

A waiver provided by the Comptroller allows a person to file state withholding tax returns on a monthly basis for the remainder of the calendar year. A person may apply for renewal of a waiver provided by the Comptroller, if the person remains eligible to file federal withholding tax returns on a monthly basis.

This Act also provides that the Comptroller may establish regulations to implement the provisions of this Act.

This Act takes effect July 1, 2006, and will be applicable to all calendar years beginning after December 31, 2006.

Tax Credits for Individuals Facing Employment Barriers House Bill 1391 (Chapter 394, Acts of 2006) - Tax Credits for Individuals Facing Employment Barriers

This Act adds a new §10-704.10 to the Tax-General Article to reestablish a credit against the state income tax for a business entity for wages paid to a qualified ex-felon employee as provided under §11-704 of the Labor and Employment Article. This credit is very similar to the credit provided under the former TG §10-704.10 that was abrogated on December 31, 2004.

For purposes of this credit, a "business entity" means a person conducting or operating a trade or business in Maryland, or an organization operating in Maryland that is exempt from taxation under §501(c)(3) or (4) of the Internal Revenue Code. A "qualified ex-felon employee" means a qualified ex-felon, within the meaning of §51(d)(4) of the Internal Revenue Code, who is employed by a business entity through the pilot program under Subtitle 7 of Title 11 of the Labor and Employment Article. A "qualified ex-felon employee" does not include an individual who is the spouse, child, stepchild, sibling, parent, stepparent, niece, nephew, aunt, uncle, or in-law of a person who controls, directly or indirectly, more than 50 percent of the ownership of the business entity.

For each taxable year, for the wages paid to each qualified ex-felon employee, a credit is allowed in an amount equal to:

• 30 percent of up to the first $6,000 of the wages paid to the qualified ex-felon employee during the first year of employment; and
• 20 percent of up to the first $6,000 of the wages paid to the qualified ex-felon employee during the second year of employment.

A business entity may not claim the credit for an employee who is hired to replace a laid-off employee or to replace an employee who is on strike, or for whom the business entity simultaneously receives federal or state employment training benefits. A business entity may not claim the credit until it has notified the Department of Labor, Licensing, and Regulation that a qualified ex-felon employee has been hired. A business entity may not claim the credit if the business entity is claiming a tax credit for the same employee under the Qualified Employment Opportunity Employees Credit, or the Credit for Hiring Qualified Employee with a Disability.

A business entity may claim a credit for an employee whose employment lasts less than one year if the employee voluntarily terminates employment with the employer, is unable to continue employment due to a disability or death, or is terminated for cause. If such an employee voluntarily terminates employment to take another job, the business entity may claim a tax credit of 30 percent of up to the first $6,000 of the wages paid to the employee during the course of employment. If such an employee is employed for less than one year for any reason other than voluntarily terminating employment to take another job, the amount of the credit shall be reduced by the proportion of a year that the employee did not work.

If the credit allowed in any taxable year exceeds the total tax otherwise payable by the business entity for that taxable year, a business entity may apply the excess as a credit for succeeding taxable years until the earlier of either the full amount of the excess is used, or the expiration of the fifth taxable year after the taxable year in which the wages for which the credit is claimed are paid.

If the credit is claimed, an addition modification is required for individuals and corporations in the amount of the credit claimed.

An organization that is exempt from taxation under §501(c)(3) or (4) of the Internal Revenue Code may apply the credit as a credit against income tax due on unrelated business taxable income, or as a credit for the payment to the Comptroller of taxes that the organization is required to withhold from the wages of employees and is required to pay to the Comptroller. Any excess credit may be applied for succeeding taxable years until the earlier of either the full amount of the excess is used, or the expiration of the fifth taxable year after the taxable year in which the wages for which the credit is claimed are paid.

This Act takes effect July 1, 2006, and will be applicable to all taxable years beginning after December 31, 2006. The tax credit will be allowed for employees hired on or after January 1, 2007 but before January 1, 2012.

The tax credit will remain in effect for five years and six months and at the end of December 31, 2011, with no further action required by the General Assembly, will be abrogated and of no further force and effect. The abrogation of this tax credit does not affect the carry forward provision.

This Act requires the Comptroller to adopt regulations to provide for the computation and carryover of the credit, and to provide procedures for claiming and applying the credit authorized against withholding. The Department of Labor, Licensing, and Regulation, in consultation with the Governor's Workforce Investment Board, is required to adopt regulations necessary to carry out the provisions of this Act.

This Act also extends the termination provisions and dates of applicability for the Qualified Employee Opportunity Employees Credit and the Credit for Hiring Qualified Employee with a Disability. The termination provisions are extended from June 30, 2006 to June 30, 2007. The dates of applicability are extended to all taxable years beginning before January 1, 2010, and to employees hired before July 1, 2007. The new termination provisions do not affect the carry forward provisions.

SALES AND USE TAX

Veteran's Organizations
Senate Bill 227 (Chapter 217, Acts of 2006) and House Bill 308 (Chapter 218, Acts of 2006) - Sales and Use Tax - Exemption - Veteran's Organizations

This Act amends TG §11-204 to provide that for a period of three years beginning July 1, 2006, the sales and use tax does not apply to a sale to a bona fide nationally organized and recognized organization of veterans of the armed forces of the United States, or an auxiliary of the organization or one of its units, if the organization is qualified as tax exempt under §501(c)(19) of the Internal Revenue Code.

This Act takes effect July 1, 2006. It will remain effective for a period of three years and, at the end of June 30, 2009, with no further action required by the General Assembly, this Act will be abrogated and of no further force and effect.

Bulk Vending Machines
House Bill 951 (Chapter 197, Acts of 2006) - Sales and Use Tax - Bulk Vending Machines

This Act amends TG §11-201.1 to provide that the sales and use tax does not apply to a sale of tangible personal property through a bulk vending machine for a taxable price of 75 cents or less. "Bulk vending machine" is defined to mean a vending machine that contains unsorted merchandise, and on insertion of a coin, dispenses the unsorted merchandise in approximately equal portions at random and without selection by the customer.

Effective July 1, 2006.

Taxable Laundering Services
House Bill 1223 (Chapter 385, Acts of 2006) - Sales and use Tax - Production Activity - Taxable Laundering Services

This Act amends TG §11-101(f) to expand the definition of "production activity" to include laundering, maintaining, or preparing textile products, and maintaining tangible personal property, in providing the taxable service of commercial cleaning or laundering of textiles for a buyer who is engaged in a business that requires the recurring service of commercial cleaning or laundering of the textiles.

Effective July 1, 2006.

Religious and Nonprofit Organizations
House Bill 1624 (Chapter 210, Acts of 2006) - Sales and Use Tax - Exemption for Sales by Religious and Nonprofit Organizations

This Act amends TG §11-204 to provide that the sales and use tax does not apply to part of the sale price in a sale by a bona fide church, religious organization, or other nonprofit organization exempt from taxation under §501(c)(3) of the Internal Revenue Code if the sale is made at an auction sale, and the proceeds of the sale are used to carry on the exempt purposes of the church or organization. Unless the sale is otherwise exempt under TG §11-204, only that part of the sale price that qualifies for a deduction under the federal income tax as a charitable contribution under the regulations and guidelines of the IRS is exempt from the sales and use tax under this Act.

Effective July 1, 2006.

ADMISSIONS AND AMUSEMENT TAX

Exemption for Agricultural Tourism Activities in Baltimore County
House Bill 1514 (Chapter 402, Acts of 2006) - Baltimore County - Admissions and Amusement Tax - Exemptions

This Act amends TG §4-103(a)(2) to expand the limitations on Baltimore County's authorization to tax by providing that the admissions and amusement tax cannot be imposed by Baltimore County on gross receipts derived from any admissions and amusement charge for any activities related to agricultural tourism.

Effective July 1, 2006.

ESTATE TAX

Maryland Estate Tax
Senate Bill 2 (Chapter 225, Acts of 2006) - Maryland Estate Tax

This Act amends nine sections of the Tax-General Article, and adds two new sections to the Tax-General Article:

• §7-301(b) - This Act changes the definition of "Estate" to "the federal gross estate of a decedent, as determined by Subtitle B of the Internal Revenue Code, as increased by any property not otherwise included in the federal gross estate that is deemed to be included pursuant to §7-309(b)(6) of this subtitle." This change was made because the new §7-309(b)(6) in this Act provides that property for which an election is made on the Maryland estate tax return is deemed to be included in the federal gross estate for purposes of calculating the Maryland estate tax.
• §7-302 - This Act changes the definition of tangible personal property subject to tax in the estate of a nonresident from "tangible personal property located in this State" to "tangible personal property that has a taxable situs in this State". This change takes into account the fact that personal property is movable, so it may be subject to Maryland estate tax even though it is not located in Maryland.
• §7-305 - This Act amends the existing law to clarify who is responsible for filing the Maryland estate tax return, and to clarify when an amended estate tax return must be filed. This Act specifies that the person who would be responsible for filing the federal estate tax return shall complete, under oath, and file a Maryland estate tax return with the Register of Wills nine months after the date of death of the decedent.

  This Act provides that after a person files a Maryland estate tax return, the person shall file an amended Maryland estate tax return with the Register of Wills if the Maryland estate tax liability is increased because of:

  • A change in the federal gross estate, federal taxable estate, federal estate tax, or other change as determined under the Internal Revenue Code;
  • After-discovered property;
  • A correction to the value of previously reported property;
  • A correction to the amount of previously claimed deductions; or
  • Any other correction to a previously filed return.
• This Act provides that the amended return shall be filed within 90 days after the later to occur of the date of the event that caused the increase in the Maryland estate tax liability, or the date on which the person required to file an amended Maryland estate tax return learned or reasonably should have learned of the increase in the Maryland estate tax liability.
• §7-305.1 - This Act adds this new section to the Tax-General Article. It provides for the granting of an extension of time to file a Maryland estate tax return. The Comptroller may extend the time to file an estate tax return up to six months, or if the person required to file the estate tax return is out of the United States, up to one year. An estate that is afforded a later due date for filing the federal estate tax return under the Internal Revenue Code shall be afforded the same later due date for filing the Maryland estate tax return. A request for an extension of time to file the Maryland estate tax return shall be filed on a form prescribed by the Comptroller.
• §7-306 - This Act amends the existing law to clarify when the Maryland estate tax payment is due. This Act provides that unless the Comptroller has allowed an alternative payment schedule, the Maryland estate tax shall be paid no later than nine months after the date of death of the decedent. An extension of time to file the Maryland estate tax return granted by the Comptroller does not extend the time for remitting the Maryland estate tax. If an amended Maryland estate tax return is filed, the person responsible for filing the amended Maryland estate tax return shall pay the additional Maryland estate tax developed on the amended Maryland estate tax return to the Comptroller when the amended Maryland estate tax return is filed with the Register of Wills.
• §7-307(d) - This Act amends the existing law to clarify that if an alternative payment schedule is allowed by the Comptroller, the person responsible for filing the Maryland estate tax return under §7-305 shall pay the tax in accordance with the schedule.
• §7-308(b) - This Act amends the existing law to provide for apportionment of Maryland estate tax on property includable in the estate under the new §7-309(b)(6) in this Act discussed below. The amendment provides that if any part of the estate consists of property the value of which is deemed includable in the estate under the new §7-309(b)(6) in this Act, the amount of Maryland estate tax apportioned to the person or persons receiving that property shall be the amount by which the total estate tax that has been paid exceeds the total estate tax that would have been payable if the value of that property had not been deemed includible in the estate. Any tax apportioned shall be apportioned among all persons receiving that property in the proportion that the value of the property received by each person bears to the total value of all such property.
• §7-309(b) - This Act adds to §7-309(b)(3) of the existing law to provide that unless the federal credit allowable by §2011 of the Internal Revenue Code is in effect on the date of the decedent's death, the federal credit used to determine the Maryland estate tax may not exceed 16 percent of the amount by which the decedent's taxable estate, as defined in §2051 of the Internal Revenue Code, exceeds $1,000,000. This Act replaces the provisions of §7-309(b)(4) of the existing law with new provisions for an election of an alternate valuation date as provided in §2032 of the Internal Revenue Code, which allows for a date up to six months after the decedent's death. If a federal estate tax return is not required to be filed:
• An irrevocable election made on a timely filed Maryland estate tax return shall be deemed to be an election as required by §2032(d) of the Internal Revenue Code;
• The provisions of §2032(c) of the Internal Revenue Code do not apply; and
• An election for an alternative valuation date cannot be made unless that election will decrease the value of the gross estate and decrease the Maryland estate tax due. An election for an alternate valuation date for Maryland estate tax purposes must be the same as the election made for federal estate tax purposes.

This Act adds a new §7-309(b)(5) to existing law to allow a Maryland estate to elect to treat property as marital deduction qualified terminable interest property (QTIP) in calculating the Maryland estate tax, and to establish that such an election on a timely filed Maryland estate tax return shall be recognized for purposes of calculating the Maryland estate tax even if an inconsistent election is made for the same decedent for federal estate tax purposes. Existing Maryland estate tax law made no provision for a Maryland QTIP election, which is an election that benefits married couples. This Act provides that the estate of the first spouse to die may make a QTIP election to reduce the decedent's estate to below the $1,000,000 Maryland filing threshold, resulting in no Maryland estate tax due. The QTIP property is then required to be included in the estate of the surviving spouse under the new §7-309(b)(6) which this Act adds to existing law.

This Act adds a new §7-309(b)(7) to existing law to clarify that for purposes of calculating Maryland estate tax, certain administrative expenses of an estate, allowable under §2053 or §2054 of the Internal Revenue Code as a deduction in computing the taxable estate of a decedent, may not be allowed as a deduction or as an offset against the sale price of property in determining gain or loss if the amount has been allowed as a deduction in computing the federal taxable income of the estate or of any other person.

• §13-601(d) - This Act amends existing law to provide that interest on unpaid Maryland estate tax begins nine months after the date of death of a decedent and applies to all Maryland estate tax that is not paid by that date, including a payment made in accordance with an alternative payment schedule.
• §13-716 - This Act adds this new section to the Tax-General Article. It provides for a penalty of 25 percent of the underpayment of tax that is attributable to any substantial estate tax valuation understatement. For purposes of this section, there is a substantial estate tax valuation understatement if the value of any property claimed, or that should have been claimed, on any Maryland estate tax return is 60 percent or less of the amount determined to be the correct amount of that valuation. The penalty may not be imposed unless the portion of the underpayment attributable to substantial estate tax valuation understatement is greater than $5,000.
• §13-1101 - This Act amends the existing law to provide that the existing provisions of Maryland's statute of limitations on assessments of income tax also apply to assessments of Maryland estate tax. This Act provides that there is no limitation on the time for assessments if:
• No Maryland estate tax return is filed;
• A false return is filed with the intent to evade the tax;
• A willful attempt is made to evade the tax;
• An amended return is not filed if required;
• An incomplete return is filed; or
• A report of federal adjustment is not filed within the required period.

Estate tax assessments made for any other reason cannot be made after three years from the later of the date that the return is filed, or the date that the return is due.

This Act is effective July 1, 2006, and will be applicable to decedents dying after December 31, 2005.

ALCOHOL AND TOBACCO TAX

Removal of Partially Consumed Bottle of Wine from Licensed Premises
Senate Bill 280 (Chapter 127, Acts of 2006) - Removal of Partially Consumed Bottle of Wine from Licensed Premises

This Act allows a person to leave a restaurant with a partially consumed bottle of wine that was purchased with a meal. The partially consumed bottle of wine must have the cork or cap replaced by the license holder or their employee, and will be considered an "open container" for purposes of transporting it in a vehicle. Effective July 1, 2006.

U.S. Military Identification Card as Proof of Age
House Bill 752 (Chapter 471, Acts of 2006) - U.S. Military Identification Card as Proof of Age

This Act adds a United States military identification card to the forms of identification that an alcoholic beverages licensee or their employee can accept as proof of a person's age for the purpose of purchasing alcoholic beverages. Effective October 1, 2006.

Technical Changes to Escrow Act
Senate Bill 797 (Chapter 538, Acts of 2006) - Technical Changes to Definitions contained in the Escrow Act

This Act clarifies certain definitions in the previously enacted Escrow Act which is the model statute provided by the Master Settlement Agreement between the state of Maryland and certain tobacco manufacturers in the United States. Effective June 1, 2006.

Limited Wine Wholesaler's License and Nonresident Winery Permit
Senate Bill 812 (Chapter 111, Acts of 2006) - Limited Wine Wholesaler's License and Nonresident Winery Permit

This Act creates a Limited Wine Wholesaler's License, available to small in-state wineries, and a Nonresident Winery Permit, available to small out-of-state wineries, to allow for the sale of their own wine directly to Maryland retailers. The license and the permit cost $50 each, and are available only to wineries that manufacture no more than 27,500 gallons of their own wine annually. Effective April 25, 2006.

For information about other alcohol-related legislation affecting local governments, visit the Maryland General Assembly's Web site.

PREVIOUS LEGISLATION

For information about tax legislation enacted during the 2005 session of the General Assembly, see Summary of 2005 Tax Legislation