Monday was crossover day in the General Assembly. This is the date by which all legislation must pass out of either the Senate or the House to be guaranteed a hearing in the opposite chamber. While legislation passed after this date can still be considered, it must first be assigned to and wait in the Rules Committee, which can cause a substantial delay in the final weeks of the session. This made Monday a key deadline for legislation if it is to pass this year.
On Monday, the Senate passed Senate Bill 544. This bill would allow food establishments that are agritourism businesses, Class 4 limited wineries, or Class 8 farm breweries to comply with the requirement in State law to provide a convenient lavatory using a portable chemical toilet. This bill now goes to the House of Delegates for their consideration.
Update on Tax Increases
On Thursday, legislative leaders and the Governor announced a framework agreement for this year’s State budget. Unfortunately, this agreement includes tax increases in order to balance this year’s budget.
The House of Delegates has the responsibility of passing the budget before the Senate this year; the full list of tax increases that are being advanced in the budget by the House can be found at: https://mgaleg.maryland.gov/Pubs/BudgetFiscal/2025rs_BRFA_Tax_Provisions.pdf
This list includes two higher tax brackets for income above $500,000 and $1,000,000, phasing out itemized deductions for those making over $200,000, and establishing a new 2% surcharge on capital gains income over $350,000. It also includes a 3% sales tax on data and IT services. In addition to these changes to State taxes, counties are also given the authority to raise income taxes by increasing the current 3.2% income tax rate cap to 3.3%.
Senator Bailey continues to oppose these tax increases. While there was an announcement of a broad budget framework made yesterday, we have not seen all of the details yet, and some of these details may also still be the subject of negotiations between the House and the Senate between now and the final day of session on April 7.
Scholarships – Deadline April 1
As a reminder, the Senatorial Scholarship application for the 2025-26 school year is now available at senatorbailey.com/scholarship. The deadline for submitting the application is April 1, 2025. The instructional letter that is posted includes information on how to complete the application, as well as how to confirm who your elected representatives are. Please be aware that our office can only accept applications from students who permanently live in Senate District 29.