7-01-2025 4:20am

300 New Laws

Jeff Barto Editor

300 New MD Laws Take Effect July 1, 2025

From new taxes to cannabis regulation and a fund to pay for abortions, 300 new laws affecting Marylanders go into effect on July 1.

From cannabis regulation to $1.6 billion in new taxes and fees approved for fiscal year 2026, hundreds of new laws affecting Marylanders go into effect on July 1.

While some of the laws adopted in the recent legislative session kicked in June 1, 300 take effect on July 1. The measures range from higher income taxes to a tenant bill of rights and regulation of data centers, an abortion fund, a ban on the use of AI images in revenge porn, and other legislation that has a real impact on Marylanders' lives.

Among the 849 bills adopted in the 2025 General Assembly that have been signed into law, most of will take effect on July 1 or Oct. 1, Maryland Matters said.

Here's a look at some of the significant bills going into effect on July 1:

Taxes on income, tech, gaming, vehicles and more: Applies a 3% sales tax on technology services like cloud storage, data processing and cryptocurrency mining. Maryland Matters reported the tax is expected to raise $500 million.

Two new upper-end tax brackets kick in and increases the tax on them from 5.75% to 6.5%, while increasing the standard deduction from $2,500 to $3,350 ($6,700 for joint filers and some others), which is expected to bring in $344 million.
Allow local governments to raise their income tax from the current maximum of 3.2% of reported state income tax — the rate currently assessed by 18 of the state’s 24 jurisdictions — to 3.3%.
Raises the tax on mobile sports wagering from 15% to 20%.
Expedites the phase-in of higher vehicle excise taxes.
Increases the cannabis sales tax from 9% to 12%.
Raises the vehicle emissions inspection fee cap from $14 to $30.
Allows a $5 fee on the sale of new tires, to help support the Transportation Trust Fund, but that tax will not be assessed until Jan. 1, 2026.

Abortion grants: Money collected from a surcharge on insurance plans sold under the Affordable Care Act will fund a program to pay for abortions, regardless of a patient’s insurance coverage, under a measure signed into law by Gov. Wes Moore.

The law will make about $25 million available on July 1, because a $1 surcharge has been unused and growing over the last 15 years since the ACA took effect in 2010. It’s estimated to make about $3 million available annually in future years.

Tenant bill of rights: Landlords must attach a “bill of rights” to every residential lease that sums up what tenants should know about their legal protections.

Data center regulation: Calls for the state to analyze the potential environmental and economic impacts of building data centers in Maryland. That analysis is due on Sept. 1, 2026.

AI revenge porn: Specifies that a “visual representation” of a person made with AI could be considered revenge porn. Those victimized by those images can file a civil suit.

Bitcoin ATMs: Puts a system in place to register virtual currency kiosks — which are also referred to as Bitcoin ATMs — to buy or sell cryptocurrency.

Cannabis Regulation

HB12/SB214: This law prohibits the sale or distribution of cannabis products marketed as containing more than 0.5 milligrams of THC per serving or over 2.5 milligrams of THC per package, and it outlines penalties for such offenses.
HB619: This bill exempts the Maryland sales and use tax on transactions involving cannabis between a licensed cannabis business and a registered cannabis nursery.
SB215: This act implements various changes to laws and regulations pertaining to cannabis businesses, including granting local governments the authority to establish operating hours for on-site cannabis consumption at retail establishments.

Elections

HB199/SB257: This legislation extends the timeframe the State Board of Elections has to send written communications to voters on the permanent absentee ballot list, increasing it from 90 to 120 days before an election, for confirming addresses and preferred ballot reception methods.

Public Safety