SB 942
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
First Reader
Senate Bill 942 (Senator Peters)
Judicial Proceedings
Corporations and Associations - Fees for Processing Articles of Dissolution,
Certificates of Cancellation, and Other Documents - Repeal
This bill repeals the $100 nonrefundable processing fee that must be paid by business
entities to the State Department of Assessments and Taxation (SDAT) for filing articles of
dissolution and certificates of cancellation. The bill also repeals the $25 nonrefundable
processing fee that foreign entities pay to file applications of termination. The bill takes
effect July 1, 2021.
Fiscal Summary
State Effect: General fund revenues decrease by approximately $879,200 annually
beginning in FY 2022. Expenditures are not affected.
(in dollars) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
GF Revenue ($879,200) ($879,200) ($879,200) ($879,200) ($879,200)
Expenditure 0 0 0 0 0
Net Effect ($879,200) ($879,200) ($879,200) ($879,200) ($879,200)
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: None.
Small Business Effect: Minimal.
 Analysis
Current Law: Business entities that file articles of dissolution and certificates of
cancellation with SDAT must pay a $100 nonrefundable processing fee. Foreign entities
are required to pay a $25 nonrefundable processing fee to file an application of termination.
State Fiscal Effect: General fund revenues decrease by approximately $879,200 annually
beginning in fiscal 2022 from business entities no longer paying the $100 and
$25 processing fees. The estimate is based on the average number of articles of dissolution,
certificates of cancellation, and foreign entity applications of termination that have been
filed with the SDAT charter unit since 2015, as shown in Exhibit 1.
Exhibit 1
Repeal of Specified Filing Fees
Number Filed
Year Dissolution Cancellation Termination
2015 2,038 5,882 599
2016 2,044 5,873 722
2017 1,982 6,184 778
2018 1,932 6,253 754
2019 2,290 7,393 832
2020 1,963 7,804 752
Total 12,249 39,389 4,437
Six-year Average of Filings 2,042 6,565 740
Fee $100 $100 $25
General Fund Decrease $204,200 $656,500 $18,500
Source: State Department of Assessments and Taxation
Additional Information
Prior Introductions: HB 1606 of 2020 was referred to the House Rules and Executive
Nominations Committee, but no further action was taken. HB 165 of 2019 received an
unfavorable report from the House Economic Matters Committee. SB 993 of 2018 received
SB 942/ Page 2
an unfavorable report from the Senate Judicial Proceedings Committee. Its cross file,
HB 18, received an unfavorable report from the House Economic Matters Committee.
SB 656 of 2017 passed the Senate, but received an unfavorable report from the House
Economic Matters Committee. Its cross file, HB 714, also received an unfavorable report
from the House Economic Matters Committee.
Cross File: HB 647 (Delegate Wilson) - Economic Matters.
Information Source(s): State Department of Assessments and Taxation; Department of
Legislative Services
Fiscal Note History: First Reader - March 24, 2021
an/hlb
Analysis by: Michael Sanelli Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 942/ Page 3


Statutes affected:
Text - First - Corporations and Associations - Fees for Processing Articles of Dissolution, Certificates of Cancellation, and Other Documents - Repeal: 1-203 Corporations and Associations