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Mayor’s legislative update: Maryland session brings tax changes, ADU mandate and energy debates for municipalities
Summary
Town officials summarized how the recently closed Maryland General Assembly session will affect Hampstead, including new tax measures, a statewide requirement to authorize accessory dwelling units starting Oct. 1, changes related to condominium reserve studies, and energy policy debates tied to the Climate Solutions Act.
The mayor delivered a wide-ranging review of legislation passed in the 2025 Maryland General Assembly, telling the Hampstead council that hundreds of bills and a $67 billion state budget were enacted and that several measures could affect the town’s residents and municipal responsibilities.
The mayor said a record 3,200 bills were introduced in the session and highlighted tax and fee changes in the enacted budget. Those changes include a new 3% “data and IT” tax (with exemptions to be defined by the state controller), a surcharge on capital gains for higher-income earners, and adjustments allowing counties to increase certain local income taxes by up to 0.1 percentage point.
On land use, the mayor said the legislature required counties and municipalities to adopt local laws authorizing accessory dwelling units (ADUs) on lots with single-family detached homes; that mandate takes effect Oct. 1. "That goes in effect on October 1," the mayor said.
He summarized energy and building measures that advanced or were defeated during the session. Proposals to impose strict building energy performance standards and certain energy use intensity limits were largely scaled back or blocked, the mayor said, and a separate bill that would have required new buildings and major renovations to meet solar- and electric-ready standards did not pass as originally drafted. The mayor also referenced the Climate Solutions Act (2022), noting state timelines that will push vehicle and building electrification targets and that some compliance mechanisms and penalties are evolving.
The mayor also discussed changes to condominium law intended to improve financial reserve planning for associations, and referenced landlord-tenant debate that touched on notice and post-eviction storage rules (some bills did not advance). He said the state budget includes a utility-bill rebate program that will provide an average payment of about $81 per ratepayer in the coming months.
The remarks were framed as an overview of state actions and potential local impacts; council members did not take formal action at the meeting on the items discussed. The mayor encouraged follow-up as the town monitors state rulemaking and implementation steps that will clarify exemptions, dates and administrative procedures.
