Bill
SB 528
Creates a one-day statewide sales tax exemption for purchases by qualifying veterans on Veterans Day (Nov 11), starting in 2025; vendors must verify veteran status.
Status and key dates
- Introduced: January 23, 2025 (Senate) — assigned to the Budget & Taxation Committee. Hearing scheduled March 5, 2025 (per docket).
- Effective date: the Act would take effect July 1, 2025. The tax‑free day would begin in calendar year 2025 on November 11 (Veterans’ Day).
- Crossfile/companion: HB 34.
Purpose and intent
- Establish an annual, statewide sales and use tax exemption for purchases made to a qualifying veteran on Veterans’ Day (November 11), beginning in 2025. The aim is a targeted, symbolic tax relief for veterans.
What the bill would do (major provisions)
- Adds Section 11‑246 to the Tax‑General Article to create a one‑day exemption: sales and use tax does not apply to a sale made to a qualifying veteran on November 11 each year.
- Defines “veteran” as an individual who (1) served on active duty in specified uniformed services (including reserve components, U.S. Public Health Service, or any State National Guard) and (2) was discharged or released under conditions other than dishonorable.
- Requires an individual seeking the exemption to provide evidence of eligibility to the vendor. The bill expressly permits proof by producing a valid driver’s license or government‑issued ID that includes a notation indicating veteran status.
- Does not specify product categories, price caps, or other purchase limits in the text provided — the exemption applies broadly to a sale to a qualifying veteran on that day.
Who is affected
- Primary beneficiaries: veterans who meet the statutory definition and can furnish the required evidence.
- Vendors/retailers: required to accept and document evidence from purchasers claiming the exemption; may see slight administrative handling on that day.
- State finances: small reduction in sales/use tax receipts and associated special fund distributions.
Fiscal impact (based on Maryland Department of Legislative Services analysis)
- Estimated annual statewide sales and use tax revenue loss of approximately $48,600 beginning in FY 2026. That estimate is split roughly into:
- General Fund: –$42,900 (FY 2026)
- Blueprint for Maryland’s Future Fund (BMFF): –$5,700 (FY 2026)
- Estimates assume existing Comptroller modeling of “tax‑free day” behavior and population share of veterans (approximately 5.3% used in the calculation). Expenditures are not expected to be affected; small business impacts are minimal.
Context and related provisions
- Maryland currently observes other limited tax‑free periods (e.g., back‑to‑school, energy‑efficient appliances). This bill would add a one‑day, veteran‑targeted exemption.
- Similar measures have been proposed in prior sessions (e.g., SB 176 of 2024).
Implementation notes and outstanding questions
- The bill requires vendors to verify veteran status; administrative guidance (and possibly vendor reporting procedures) would be needed to implement the exemption smoothly.
- The summary text does not limit the exemption by item type, price threshold, or quantity — which could make the exemption broader than many existing tax‑free periods unless later amended.
- The fiscal estimate is small but contingent on assumptions about veteran purchases and taxpayer behavior on the tax‑free day.
Compiled from official sources — confirm details with the bill’s official record.
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