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Commissioners question Maryland bill that would let localities tax on‑site food and beverage sales
Summary
Town staff briefed commissioners on Senate Bill 324, which would let counties and municipalities impose an admissions and amusement tax on on‑site food and beverage sales up to 3%; commissioners and staff warned of competitiveness and equity concerns and said Bel Air has no current plan to adopt such a tax.
Bel Air — At the Jan. 28 work session commissioners received a briefing on Maryland Senate Bill 324, a state bill that would allow counties and municipalities to impose the admissions and amusement tax on gross receipts from on‑site food and beverage sales, with a maximum local rate of 3%.
Town staff summarized statewide talking points provided by county destination marketing organizations, which warned the tax could increase tourists’ dining costs, complicate multi‑jurisdictional pricing, and discourage visitation to higher‑tax destinations. The municipal lobbying group (MML) has flagged municipal revenue‑raising as a priority and has taken a broadly favorable position on the enabling legislation, town staff said; destination marketing organizations oppose the change.
Commissioners expressed strong reservations. "Thanks but no thanks," Commissioner Taylor said, adding that Maryland residents already face a heavy tax burden and that the measure risks steering tourists to lower‑tax neighboring jurisdictions. "I do not see this as a good policy," he said. Other commissioners worried about the optics of enabling a new local tax and whether counties and towns would feel compelled to levy it once the state grants the authority.
Staff noted the bill is enabling legislation, meaning the county or town would decide whether to implement the tax; there is no automatic revenue sharing between county and municipality. Director Moody warned that if the town seeks other state funding in future, declining to implement an available local revenue source could be questioned by state decision‑makers.
The bill’s first committee hearing was scheduled for Jan. 29; town staff said they had little time to prepare formal comments before the committee deadline. Commissioners did not adopt a formal town position at the work session but said staff should monitor the bill and report back if the Harford County delegation or the General Assembly acts in ways that would require a local response.
