MD HB1238

Imposes an annual surtax on Maryland residents with net worth exceeding $1 billion, calculated as the difference between the median effective tax rate paid by all Maryland residents and the individual's own effective rate, ensuring billionaires pay at least the same rate as typical residents

Establishes a one-time wealth tax on residents with net worth over $1 billion, with rates of 3% on wealth between $1-2.5 billion, 5% on wealth between $2.5-5 billion, and 6% on wealth exceeding $5 billion, with a valuation date of January 1, 2027

Creates the Maryland Strategic Investment and Stabilization Fund to receive wealth tax revenue, with primary use for reducing the state's structural budget deficit and offsetting federal funding reductions

Allows payment of the one-time wealth tax in equal installments over up to 5 years with interest, and authorizes the Comptroller to evaluate asset transfers within 2 years to prevent tax avoidance

Takes effect July 1, 2026, with the surtax applying to taxable years after December 31, 2027, and the one-time wealth tax provision automatically expiring on June 30, 2032