Week Eleven: Post Crossover, New Updates on the Budget, the Firearms Ammunition Tax Bill, Offshore Wind Hearing,

 and a Sneak Preview

REMINDER: PUBLIC HEARING MONDAY

ON US WIND ONSHORE FACILITY

U.S. Wind's proposed O&M Facility would include three buildings: a main office building, secondary warehouse building, and a crew support building. The site also would accommodate parking, a laydown yard, and an approximately 628-ft-long fixed pier with mooring for up to four crew transfer vessels. it is anticipated that the main office building and crew support buildings may be up to three stories in scale and will not exceed the 45-foot municipal building height limit.

There will be a Public Hearing held by the Maryland Department of the Environmenton Monday, March 25th at Guerrieri Hall on the campus of Wor Wic Community College at 5:30 32000 Campus Dr. Salisbury, MD. (This is a change in rooms from the previous location)

Per MDE: The public will be required to sign up to provide oral comments during the hearing. Written comments will be accepted by Robert Simmons either by email or by mail to the following address:

Maryland Department of the Environment

Attn: Miles Simmons

201 Baptist Street, Suite 22

Salisbury, MD 21801

robertm.simmons@maryland.gov

CROSSOVER COMPLETE

The work of the Senate of Maryland continues now that we’ve passed March 18^th Crossover Day, a key deadline for legislation to be approved in the original chamber to guarantee consideration in the other chamber. 

SENATE-HOUSE SHOWDOWN ON THE BUDGET

After the full Senate passed its version of the $63.1 billion budget for fiscal year 2025 on March 14, the budget went to the House Appropriations Committee for consideration. The full House passed its amended version of the Fiscal Year 2025 budget on March 21. The differences between the Senate version and the House version must be worked out by April 1^st before reaching the Governor’s desk.

“Passing a balanced budget is the only constitutional responsibility of the Maryland General Assembly. Budgets are about priorities, and there are significant differences between the Senate version and the House version, especially when it comes to increased taxes and fees included in the House budget.”

The House version of the budget included roughly $900 million in taxes and fees including the elimination of the sales tax exemption on vehicles traded in to dealers, electric vehicle surcharges, increased registration fees based on revised vehicle weight classes, and increasing the vehicle excise tax from 6 percent to 6.5 percent.

The House also expects to collect $300 million through iGaming, which would bring casino-style games to phones and other electronic devices. Senate leadership previously dismissed iGaming as a path forward to resolve the growing State deficit, which is projected to increase to $1 billion for FY 2026.

“This growing structural deficit is largely due to the need to meet the funding goals of the Blueprint education plan, which increases education funding by $3.8 billion annually over 10 years and is already causing tremendous hardship at the local level. We need to extend timelines on the Blueprint and give our local jurisdictions and local Boards of Education the flexibility they need to ensure affordability and transparency.”

Democratic leadership in the House are pushing to increase taxes and fees now, whereas both Democratic and Republican leadership in the Senate believe the best way is to focus on competitiveness and growth. These two different approaches have led to two different budgets, and the final budget must be negotiated before the April 1^st deadline. Additionally, the budget must be approved by Governor Wes Moore, who has consistently pledged not to raise taxes.

 “Increasing taxes is the absolute wrong approach and would only serve to make the everyday lives of Marylanders more expensive during a time of high inflation. Many Marylanders are struggling to pay for basic necessities such as groceries and gas.” 

FIREARMS AND AMMUNITION SALES TAX

Senate Bill 784, which was introduced by Senator Sarah Elfreth (D- District 30/Anne Arundel) and as originally drafted would have imposed an excise tax of 11 percent on guns and ammunition and amended to an 11 percent sales tax on guns and ammunition to fund Maryland’s trauma center, was heavily debated on the Senate Floor before Crossover and passed the Senate on Crossover Day, March 18^th

“This outrageous sales tax increase is unconstitutional and disproportionately targets small business operators like Wink’s Sporting Goods in Princess Anne and traditional law-abiding gun hunters. I stood up on the Senate Floor to lead the opposition to this dramatic gun and ammunition sales tax which would heavily impact small businesses, driving customers across state lines and driving local dealers out of business.”  

I introduced an amendment to exempt the additional firearms and ammunition sales tax on businesses with 15 or fewer employees. The amendment did not move forward by a vote of 16-25 with five Democrats voting for the my amendment. The Senate passed SB 784 by a vote of 28-17, with five Democrats joining all the Republicans in voting against the sales tax bill. SB 784 is pending in the House Ways and Means Committee with a hearing scheduled for March 28. 

OFFSHORE WIND ENERGY BILL HEARING IN SENATE

The Senate Education, Energy, and Environment Committee heard House Bill 1296 on Thursday, which would increase Maryland ratepayer subsidies by allowing the Public Service Commission to open a 90-day proceeding to revise project sizes, schedules, or offshore wind renewable energy credit (OREC) pricing for previously approved Round 2 offshore wind projects.

This bill was introduced by House Economic Matters Committee Chair C.T. Wilson (D-District 28/Charles County) following the January 25^th decision by Ørsted to withdraw from the Skipjack project. US Wind, the remaining offshore wind development applicant off Maryland’s Coast, would benefit from HB 1296.

During the hearing, noted that “US Wind had assured State officials when first proposing the offshore wind energy project that the closest turbine would be 17 miles from the Shore. Yet in its latest federal application, US Wind plans to place 114 of these gigantic turbines that would be almost four times the height of the tallest building in Ocean City as close as 11 miles from our Shore.”

I asked Chair Wilson about the negative impacts as reported by “The Bureau of Ocean Management’s own Environmental Impact Study, released in October 2023, which validates many of the concerns my constituents have had for years as ‘unavoidable, adverse impacts.’ The report points to high-impact hydraulic hammers pounding the seafloor during the three years of construction, increased risks of accidents due to changes in navigational patterns, and ‘detectable, measurable, of severe intensity, and long-lasting or permanent’ negative impacts on marine life.

“The bill as introduced provides three methods to increase the subsidies that benefit the offshore wind developer and harm the ratepayer and taxpayer. At the same time, US Wind offered a community benefits package to Ocean City worth $2 million over a 20-year period. Mayor Meehan rejected the offer and said ‘The future of Ocean City cannot be bought and we intend to continue to do what is necessary to protect the interests of our residents, property owners, and future generations.’

I restated that the multiple concerns regarding offshore wind industrialization have been expressed by various entities and all are on record, including the detrimental impact on the local economy and tourism, the damaging effects on marine life, fishing, and the military, and the high costs for ratepayers and taxpayers.

Also, I highlighted US Wind’s application to build an operating and maintenance facility and a 625-foot-long concrete pier at the West Ocean City Harbor, and noted the strong local opposition to it. . The Maryland Department of the Environment will hold a public hearing on this project on Monday, March 25^th at 5:30pm at Wor-Wic Community College. Members of the community are encouraged to attend.

If you would like to see a video of the full hearing referenced above, click the link below:

LOCALS IN ANNAPOLIS

Terry McGean (center) Ocean City’s Town Manager, and John Gehrig (left), Ocean City Town Council Member, testified against HB 1296 before the Senate Education, Energy, and Environment Committee on March 21^st.

SNEAK PREVIEW

Senate Bill 897, sponsored by Senator Carozza, would relieve the tax liability on the death benefits of the families of first responders who died in the line of duty. Death benefits paid to the families of our fallen heroes are intended to relieve the immediate financial burden caused by their loss.

“This legislation would ensure that the families of these fallen heroes receive these full death benefits as intended, and the legislation is retroactive to ensure that Corporal Glenn Hilliard’s family, a 16-year veteran who was shot and killed in the line of duty by a suspect who was wanted on multiple felony warrants, are relieved from paying taxes on these needed death benefits. I want to recognize and thank Tashica Hilliard for her leadership in advocating for all the families of Maryland’s fallen heroes,” said Carozza.

SB 897 unanimously passed the full Senate on March 14^th with the full support of the Senate Budget and Taxation Committee who cosponsored this legislation. SB 897 is scheduled to be heard by the House Ways and Means Committee on March 28^th.

NEXT RADIO INTERVIEW

Thursday, April 4th at 8:20 am, you can find me on WGMD Talk Radio 92.7 FM and 98.5 FM with Mike Bradley

I will be a guest on the Rude Awakening Show with Bulldog, Coach, The Dude, and Marla on Monday, April 15th at 8:00 am on WOCM 98.1 FM radio.

(use the WGMD link below for live streaming).

STAY INVOLVED

We welcome your visit to Annapolis and encourage you to follow the fast pace of legislation by signing on to the General Assembly Website where you can find useful information. At the bottom of the page, click on video tutorials for full descriptions. Below is a link to the site.

IN SERVICE,

MARY BETH

By Authority: Friends of Mary Beth Carozza, James R. Bergey, Jr., CPA, Treasurer