HB 1101
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
First Reader
House Bill 1101 (Delegate Acevero)
Appropriations
Maryland People’s Fund – Establishment
This bill establishes the Maryland People’s Fund that consists of (1) estate tax revenue
distributed as specified; (2) money appropriated in the State budget; (3) interest earnings;
and (4) any other money from any other source accepted for the benefit of the fund.
Expenditures from the fund may only be made in accordance with the State budget. The
bill takes effect January 1, 2022.
Fiscal Summary
State Effect: General fund revenues decrease by $34.9 million in FY 2022 and special
fund revenues increase by the same amount. Future years reflect continued diversion of
general fund revenue to the new Maryland People’s Fund. The Comptroller can distribute
estate tax revenues as directed using existing resources. This bill establishes a mandated
distribution beginning in FY 2022.
($ in millions) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
GF Revenue ($34.9) ($34.8) ($35.8) ($35.1) ($37.6)
SF Revenue $34.9 $34.8 $35.8 $35.1 $37.6
Expenditure $0 $0 $0 $0 $0
Net Effect $0 $0 $0 $0 $0
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: None.
Small Business Effect: None.
 Analysis
Bill Summary: The Maryland People’s Fund is a special, nonlapsing fund that cannot be
used for administrative expenses. The State Treasurer must invest the money in the fund in
the same manner as any other State money may be invested.
The Comptroller must distribute 25% of the State estate tax revenue to the Maryland
People’s Fund. After making this distribution, the Comptroller must distribute remaining
State estate tax revenue to the general fund.
Current Law: The State imposes a tax on property that passes at or after the death of an
individual through an estate tax and an inheritance tax. In fiscal 2022, estate tax
general fund revenues are projected to total $139.6 million. Estates may generally claim a
credit against the estate tax for the amount of inheritance taxes paid.
A Maryland estate tax return is required for every estate with a federal gross estate, plus
specified adjustments, that equals or exceeds the Maryland estate tax exclusion amount for
the decedent’s date of death. An estate with a value that exceeds this exclusion amount
must file a return if the decedent, at the date of death, was a Maryland resident or the
decedent was a nonresident who owned real or tangible personal property having a taxable
situs in Maryland.
State Revenues: Under the bill, the Comptroller must distribute 25% of the State estate
tax revenue to the Maryland People’s Fund. Estate tax revenues are projected to total
$139.6 million in fiscal 2022; therefore, general fund revenues decrease by an estimated
$34.9 million in fiscal 2022 and special fund revenues increase correspondingly. Exhibit 1
shows the estimated impact of the bill on the general fund and the new Maryland People’s
Fund from the required distributions over the five-year period covered by this fiscal and
policy note. Future year estimates reflect the State revenue forecast.
HB 1101/ Page 2
 Exhibit 1
Revenue Impact on the General Fund and the Maryland People’s Fund
Fiscal 2022-2026
($ in Millions)
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
General Fund ($34.9) ($34.8) ($35.8) ($35.1) ($37.6)
Maryland People’s Fund 34.9 34.8 35.8 35.1 37.6
Note: The fiscal 2022 revenue impact reflects a full fiscal year despite the bill’s January 1 2022 effective
date, as advised by the Comptroller’s Office. To the extent 25% of revenues received only in the second half
of the fiscal year are distributed to the new fund, the revenue impact is lower in fiscal 2022.
Source: Comptroller’s Office; Department of Legislative Services
State Expenditures: The Comptroller can distribute estate tax revenues as directed using
existing resources.
This analysis does not reflect expenditures from the new Maryland People’s Fund as the
bill does not specify how the fund may be used, only that it may not be used for
administrative expenses and that expenditures may be made only in accordance with the
State budget. Under the revenue assumptions above and absent any appropriations in the
operating budget, the Maryland People’s Fund will have a fund balance of more than
$178 million available for use by the end of fiscal 2026.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Comptroller’s Office; Maryland State Treasurer’s Office;
Department of Budget and Management; Department of Legislative Services
HB 1101/ Page 3
Fiscal Note History: First Reader - March 11, 2021
rh/hlb
Analysis by: Trevor S. Owen Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 1101/ Page 4


Statutes affected:
Text - First - Maryland People’s Fund – Establishment: 6-226 State Finance and Procurement, 5-108 State Government, 2-801 Tax General, 5-108 Tax General