State Tax Day - Current, S.4, Maryland—Liquor Industry Taxes and Control: Recent Developments, (Jun 22, 2026)

Statewide—Certain Distillery Licensees May Produce Additional Brands. Effective July 1, 2026, Class 9 limited distillery licensees are authorized to manufacture, rectify, or bottle more than one brand of alcoholic beverages. Currently, licensees are limited to maintaining only one brand at a time for each product type. Class 9 limited distillery licensees may manufacture or rectify up to 31,000 gallons per calendar year of product for another brand or entity. The total maximum production remains at 100,000 gallons per year. Other license requirements and the annual license fee remain the same. Ch. 860 (H.B. 999), Laws 2026, effective as noted above

Statewide—Class 8 Farm Brewery License Provisions Expanded. Effective July 1, 2026, Class 8 farm brewery licensees are required to actively engage in agritourism. The term"agritourism" is defined as exposing the public to farming and value-added farming practices, and to operate as an agribusiness involved in the production, showcasing, preparation, and sale of farm products.

The food service standards for Class 8 farm breweries are modified, allowing them to sell or serve a broader range of foods if they are licensed as a food establishment, use a licensed food truck or caterer, or serve cottage industry food prepared on the farm. Class 8 farm breweries may host festivals, provide live music or entertainment, and rent portions of the farm for private or public events such as weddings and fundraisers. Additionally, authority over Class 8 farm breweries is centralized under the Executive Director of the Alcohol, Tobacco, and Cannabis Commission, who also determines the annual license fee (not to exceed $200) and is responsible for annual reporting on beer production by licensees. The requirement for Class 8 farm breweries to meet specific food-to-alcohol sales ratios is removed. Except for local fire safety codes, the Executive Director cannot limit the number of visitors to the premises. Ch. 861 (S.B. 807), Laws 2026, effective as noted above

Statewide—Eligibility for Alcoholic Beverage License Fee Refunds Broadened. Effective July 1, 2026, licensees can receive a refund of the unearned portion of their license fee if they volunteered for, or were called into the, uniformed services (currently, the armed forces of the United States). This extends the refund eligibility to members of the National Oceanic and Atmospheric Administration (NOAA) and the Public Health Service, in addition to the military branches. The other existing grounds for refunds, such as bankruptcy, death, license revocation, judicial reversal, or government acquisition of premises are not changed. These amendments apply to both statewide and local licensing provisions. Ch. 863 (S.B. 13), Laws 2026, effective as noted above

Statewide—Pomace Brandy and Bulk Wine Provisions Amended. Effective July 1, 2026, the definition of "pomace brandy" that Class 4 limited wineries are authorized to produce and sell is amended to include brandy distilled from wine made with at least 51% Maryland-grown agricultural products. All pomace brandy distilled and bottled by Class 4 limited wineries must be reported as a distilled spirit for alcoholic beverage tax purposes. Class 3 winery licensees may acquire bulk wine from Class 4 limited wineries. Also, Class 4 limited wineries may sell and deliver bulk wine to Class 3 wineries. The annual license fees for Class 3 and Class 4 licenses remain capped at $750 and $200, respectively, as determined by the Executive Director. Ch. 862 (S.B. 803), Laws 2026, effective as noted above.

Anne Arundel County—Fee structure Approved for Class C Per Diem Licenses. Effective July 1, 2026, the fee structure for Class C per diem alcoholic beverage licenses is modified in Anne Arundel County, Maryland. A tiered fee system based on event attendance and the number of alcohol point-of-sale locations is established. Ch. 857 (S.B. 399) and Ch. 858 (H.B. 522), Laws 2026, both effective as noted above.

Anne Arundel County—Entertainment Permits Updated. Effective July 1, 2026, the framework for entertainment permits associated with alcoholic beverage licenses in Anne Arundel County, Maryland is revised. Three types of entertainment permits are updated:

• the background entertainment permit with an annual fee of $100;

• the general entertainment permit with annual fees of $200 or $300, depending on the type of alcohol license held; and

• the full entertainment permit with annual fees of $200 or $400, depending on the license, with no charge for Class C licensees. Ch. 854 (H.B. 519) and Ch. 855 (S.B. 400), Laws 2026, both effective as noted above.

Anne Arundel County—Barbershop and Beauty Salon Licensees Sale of Alcoholic Beverages Expanded. Effective July 1, 2026, licensed barbershops and beauty salons in Anne Arundel County, Maryland may serve limited amounts of liquor, in addition to beer and wine, to customers for on-premises consumption. Service of alcoholic beverages is allowed when barbering or cosmetology services are provided, or during fundraising events held at the establishment. The annual license fee remains $100. Serving alcoholic beverages is allowed during normal business hours, but not later than 9 p.m. Sunday service is included without the need for a separate Sunday license. Ch. 846 (S.B. 852) and Ch. 847 (H.B. 1286), Laws 2026, both effective as noted above.

Anne Arundel County—Golf Course License Created. Effective July 1, 2026, a Class GC (Golf Course) license may be issued, allowing the sale of beer, wine, and liquor for on-premises consumption at golf courses with at least nine holes. Conditions are specified regarding the location of sales and consumption. Sales are allowed from 6 a.m. to 2 a.m. daily without requiring a separate Sunday permit. The annual fee for the license is $1,200.

Also, two types of sports activity venue licenses: one for beer and wine, and another for beer, wine, and liquor may be issued to commercial recreational facilities offering activities such as bowling, golf simulators, multisport simulators, pickleball, gymnasiums, or similar venues. Alcohol sales are restricted to designated areas and to customers who are either participating in activities, dining, or are guests of participants. A variety of prepared food must be available during all of the hours that alcohol is sold. The annual fees are $740 for the beer and wine license and $1,200 for the beer, wine, and liquor license. Ch. 850 (H.B. 682) and Ch. 851 (S.B. 441), Laws 2026, both effective as noted above.

Anne Arundel County—Nonprofit Swim Club License Authorized. Effective July 1, 2026, a new consumption-only nonprofit swim club license may be issued in Anne Arundel County, Maryland to nonprofit swim clubs. The license allows club members and their guests to bring and consume beer, wine, and liquor at the premises during designated events. Alcohol consumption is permitted only in designated areas during these events. Events may last for up to five days per year. However, the Board may approve one to three additional days. Licensees must notify the Board at least ten days before any event where alcohol will be consumed. Consumption is allowed from 2 p.m. to 10 p.m. during the events. The annual fee for the license is $100, with an additional $50 fee per extra day. Ch. 829 (S.B. 414), Laws 2026, effective as noted above.

Anne Arundel County—Veterans’ Organization License Eligibility Expanded. Effective July 1, 2026, the criteria for obtaining a Class C (veterans’ organization) alcoholic beverages license in Anne Arundel County, Maryland is amended. The qualifying members are expanded from those who served in the armed forces of the United States during a war to those who served in the uniformed services. Other existing license requirements remain the same. The license continues to authorize the sale of beer, wine, and liquor for on-premises consumption to members and their guests. Also, outside groups may obtain a separate per diem license for events. Ch. 818 (S.B. 76) and Ch. 819 (H.B. 727), Laws 2026, both effective as noted above.

Anne Arundel County—Exemption to Certain Population Quota Provisions Applied. Effective July 1, 2026, an exemption is authorized to the existing population ratio quota, that generally restricts the issuance of Class A (off–sale) and Class D (off–sale) alcoholic beverage licenses to no more than one per 3,500 individuals within a tax assessment district in Anne Arundel County, Maryland. This exemption applies to applications for licenses that were filed on or after January 1, 2023, and approved by the Board before July 1, 2025, in addition to existing exemptions. The population for each assessment district is determined by the latest federal census or county estimates. License transfers to locations outside their original assessment districts are restricted. Ch. 859 (S.B. 442), Laws 2026, effective as noted above.

Baltimore City—License Compliance Deadlines Changed. Effective July 1, 2026, Class A beer and light wine licensees and Class A beer, wine, and liquor licensees, are no longer required to meet the formerly established deadline of September 30^th to pay a supplementary fee to exercise Sunday sales privileges between Thanksgiving Day and New Year’s Day. Instead, licensees are required to pay the $120 supplementary fee for each Sunday they wish to sell alcohol during this period.

The deadline is changed for licensees to present proof of payment of all personal property taxes due to Baltimore or the state. This proof must be provided by March 30 (currently, October 30) annually. Failure to present this certificate will result in immediate suspension of the license, but the license can be reinstated upon presentation of the required documentation. Ch. 813 (S.B. 636) and Ch. 814 (H.B. 1425), Laws 2026, both effective as noted above

Baltimore City—Licensing Options Expanded. The alcoholic beverage laws for the 46th district of Baltimore, Maryland are amended to expand licensing options, require community agreements, establish new privileges and penalties, and extend certain license expirations. Ch. 844 (H.B. 998) and Ch. 845 (S.B. 642), Laws 2026, both effective June 1, 2026.

Baltimore County—Sales by Restaurants and Bars for Off-Premises Consumption Allowed. Effective July 1, 2026, the authorization for the sale of alcoholic beverages for off-premises consumption by restaurants and bars is contingent upon the Board of License Commissioners for Baltimore County, Maryland adopting specific regulations. Class B or Class D licensees, that allow on-premises and off-premises sales at restaurants or bars, may obtain a permit to sell mixed drinks or cocktails in sealed or closed containers for off-premises consumption. The drinks must be purchased with prepared food (excluding prepackaged snacks). The buyer must be at least 21 years old and present valid identification. The Board may not charge additional fees to licensees for this privilege. However, the Board may limit the quantity of alcoholic beverages sold to an individual in a single transaction. Ch. 815 (H.B. 121) and Ch. 816 (S.B. 72), Laws 2026, both effective as noted above.

Baltimore County—Alcoholic Beverage Licensing Streamlined. Effective July 1, 2026, several existing statutory provisions that restricted the transfer and conversion of certain alcoholic beverages licenses are repealed. Prohibitions that prevented licenses from being transferred to different premises or converted to other license classes are removed. The unique licensing rules and exceptions for designated commercial areas are eliminated.

All existing special Class B beer, wine, and liquor licenses issued under repealed provisions must be converted into standard Class B hotel and restaurant licenses. The conversion must be completed by October 1, 2026. Ch. 832 (H.B. 1474), Laws 2026, effective as noted above0

Carroll County—Distillery On-Premises Consumption Permit Authorized. Effective July 1, 2026, a new Class 1 distillery on-premises consumption permit may be issued in Carroll County, Maryland to Class 1 distillery licensees. The permit allows them to sell, prepare, and serve food, nonalcoholic beverages, and alcoholic beverages for on-premises consumption. The permit also enables the use of the licensed premises for events under specified conditions. The Board of License Commissioners is ordered to adopt regulations to implement the new permit and to set the annual permit fee. Ch. 836 (H.B. 1526), Laws 2026, effective as noted above.

Cecil County—Quota System Changed for Class A Licenses. Effective July 1, 2026, the Board of License Commissioners of Cecil County, Marland may issue one Class A license for every 2,000 (currently, 1,200) registered voters or major fraction thereof in each election district. Additionally, the Board is required to issue at least two Class A licenses in each election district, regardless of population. The law clarifies that other license types, such as restaurant, club, motel, hotel, or golf course licenses, are excluded from this quota calculation. The quota is to be computed and applied separately for each election district within the county. Ch. 825 (H.B. 664) and Ch. 826 (S.B. 897), Laws 2026, both effective as noted above.

Garrett County—Special Event Permit and Catering Event License Privileges Amended. Effective July 1, 2026,a new special event permit may be issued to Class 3 and Class 4 winery licensees, allowing them to sell beer, wine, sparkling wine, and liquor for on-premises consumption at private events. The permit can be used up to 32 times per year, with each event lasting up to seven days for the same client. The annual fee for the permit is $1,750, plus a one-time issuing fee of $1,750.

Certain licensees with a catering option are now explicitly permitted to serve alcoholic beverages to a person of legal drinking age at catered events anywhere in the county, provided the premises is not already licensed or under a temporary license. A licensee providing alcoholic beverages at a catered event off the licensed premises must also provide food. Ch. 827 (S.B. 802) and Ch. 828 (H.B. 1203), Laws 2026, both effective as noted above.

Harford County—Hours of Sale Expanded for Certain Licensees. Effective July 1, 2026,Class HC (health club) beer and wine licensees in Harford County, Maryland holding 6-day and 7-day licenses may sell beer and wine for on-premises consumption between 1 p.m. and 11 p.m. Currently, sales are allowed from 1 p.m. to 9 p.m. Ch. 841(S.B. 684) and Ch. 842 (H.B. 991), Laws 2026, both effective as noted above.

Howard County—Gift Basket Permit Established. Effective July 1, 2026, a new gift basket permit may be issued in Howard County, Maryland, allowing certain businesses to sell and deliver gift baskets containing limited quantities of beer, wine, or liquor to consumers of legal drinking age within the county. These businesses include those whose primary business is the sale and delivery of flowers and gift baskets. The permit is not available to businesses that already hold other alcoholic beverage licenses or permits, nor can it be used in conjunction with chain stores, supermarkets, or discount houses. Annual sales from alcoholic beverages may not exceed 10% of the permittee’s gross sales. The permittee or their employee, who is at least 21 years old, must deliver the gift basket and verify the recipient’s age. The annual fee for the permit is $100. Ch. 817 (H.B. 456), Laws 2026, effective as noted above.

Prince George’s County—New Class B License Authorized. Effective on July 1, 2026, a new Class B–SEC (Small Event Center) beer, wine, and liquor license may be issued in Prince George’s County, Maryland. A "small event center" is defined as a venue operating on a per-event basis or limited schedule, without standard daily hours. The license may be issued to small event centers that have kitchen and dining facilities accommodating between 75 and 110 individuals (currently, 75 to 125). The license authorizes the sale of beer, wine, and liquor for on-premises consumption during events. Up to 24 licenses may be issued per year countywide, and a maximum of three licenses per State legislative district at any one time. Eligibility requirements are specified. The annual fee for the license is $3,500. Ch. 838 (H.B. 443), Laws 2026, effective as noted above.

Prince George’s County—Additional Wine Festival Licenses Allowed. Effective July 1, 2026, the Board of License Commissioners in Prince George’s County, Maryland may issue multiple wine festival licenses annually. Additionally, the potential locations for such events are expanded. The primary focus of the wine festivals must be the promotion of Maryland wine. The Board retains authority to select festival dates and locations, to set license fees and to adopt necessary regulations. Ch. 824 (H.B. 558), Laws 2026, effective as noted above.

Prince George’s County—Holding Multiple Class B Licenses Authorized. Effective July 1, 2026, individuals and entities in Prince George’s County, Maryland may hold multiple Class B (on–sale) beer and wine or beer, wine, and liquor licenses, without violating the general prohibition against multiple licenses. Ch. 823 (H.B. 406), Laws 2026, effective as noted above.

Wicomico County—Hours for Alcoholic Beverage Sales at Golf Courses Expanded. Effective July 1, 2026, the permitted hours when Class B beer, wine, and liquor (golf course) licensees may sell alcoholic beverages are changed to begin at 7 a.m. (currently, 10 a.m.). The closing times remain unchanged—2 a.m. Monday through Saturday and midnight on Sundays. The annual license fee of $2,200 remains the same. Ch. 820 (H.B. 754) and Ch. 821 (S.B. 700), Laws 2026, both effective as noted above

Worcester County—Temporary To-Go Alcohol Sales Allowed During Special Events. Effective July 1, 2026, a temporary to-go event permit may be issued to certain Class B and Class D alcoholic beverage licensees allowing the sale of beer, wine, and liquor in approved to-go cups for consumption within, or adjacent to, designated special event areas. The fee for a temporary to-go event permit is $20 per day.

A Class C per diem municipal to-go beer, wine, and liquor license may be issued in specified Worcester County municipalities to designate special event areas for up to seven consecutive days. During the special event, to-go alcoholic beverages may be consumed within the special event boundaries. The fee for a Class C per diem municipal to-go license is $45 per day. Ch. 834 (H.B. 1101) and Ch. 835 (S.B. 846), Laws 2026, both effective as noted above