MD HB1056

Counties with local bag fee laws must impose an excise tax on any amount retailers charge for plastic or paper carryout bags that exceeds the minimum required by local law

Revenue from the excess fee is split three ways: one-third to the county, one-third to the State General Fund, and one-third retained by the retailer for administrative costs

Counties are responsible for administering and collecting the excise tax alongside their existing bag fee programs

Retailers must remit the county and state portions of the tax, with the state's share forwarded to the Comptroller

Effective date: July 1, 2025