House Bill 15, introduced in Maryland on March 15, 2025, aims to clarify the personal liability of corporate officers and members of limited liability companies (LLCs) and partnerships regarding sales and use tax obligations. The bill specifically extends liability to key individuals within these entities, including presidents, vice presidents, and treasurers of corporations, as well as members and managers of LLCs and limited liability partnerships, depending on their governance structures.

The primary purpose of House Bill 15 is to ensure that individuals in leadership positions within these business entities can be held accountable for unpaid sales and use taxes, including any associated interest and penalties. This move is intended to enhance tax compliance and reduce the burden on state revenue from uncollected taxes.

Notably, the bill includes provisions that protect existing obligations or contract rights from being impaired by its enactment, which may alleviate concerns from businesses about potential retroactive impacts. The bill is set to take effect on October 1, 2026, allowing time for businesses to adjust to the new regulations.

Debate surrounding House Bill 15 has focused on the implications of extending personal liability to corporate officers and LLC members. Supporters argue that it will promote greater accountability and compliance with tax laws, while opponents express concerns that it may deter individuals from taking leadership roles in businesses due to the increased personal financial risk.

The economic implications of this bill could be significant, as it may lead to improved tax collection for the state, potentially increasing funding for public services. However, critics warn that the heightened liability could discourage entrepreneurship and innovation, particularly among small businesses and startups.

As House Bill 15 progresses through the legislative process, its potential impact on Maryland's business landscape and tax compliance will be closely monitored by stakeholders across the state.