Beginning July 1, new laws take effect across the region, covering everything from virtual currency kiosks and financial literacy education to an increase in the minimum wage.

MARYLAND

New Tech Tax: Credit Unions Exempt
Starting July 1, 2025, Maryland will begin imposing a 3% sales and use tax on data processing and IT services, as part of an update to the state’s existing sales tax. Credit unions remain exempt, as the new “tech tax” simply adds IT services to the list of existing taxable services like cleaning, transportation, and security.

Here’s why the new tech tax does not apply to credit unions:

• Existing provisions in Maryland law exempt sales to credit unions, organized under state or federal law, from sales and use tax.
• The new tech tax is not a standalone tax; it simply expands the list of taxable services under the existing sales and use tax framework.
• Since the exemption statute remains unchanged, and credit unions are already exempt from sales and use taxes, they are also exempt from the new tech tax.
• Additionally, if a CUSO currently qualifies for this exemption, it will continue to qualify after July 1, 2025.

Virtual Currency Kiosks
The state will begin regulating virtual currency kiosks by requiring operators to register their kiosks with the Maryland Commissioner of Financial Regulation. Kiosk operators are prohibited from accepting or dispensing more than $2,000 for a new user or $10,500 for an experienced user. They are also prohibited from imposing a fee exceeding the greater of $5 or 15 percent of the transaction amount and are required to provided warnings and disclosures.

DELAWARE

Financial Literacy Graduation Requirement
Delaware high school students will be required to complete at least a ½ credit in financial literacy to graduate under “The Equity and Inclusion in Financial Literacy for All High School Students in Delaware Act.” Instruction must meet the standards established by the Delaware Department of Education by including key topics like budgeting, saving, establishing credit, and financial planning. All high schools must offer the course beginning with the 2026 – 2027 school year.

DISTRICT OF COLUMBIA

Minimum Wage
The minimum wage will increase from $17.50 to $17.95 an hour. Last month, the DC Council voted to pause the planned increase of the tipped minimum wage, which would have taken effect July 1.