MD
Maryland House Bill HB76

Maryland 2022 Regular Session

Maryland House Bill HB76 Compare Versions

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1- LAWRENCE J. HOGAN, JR., Governor Ch. 415
21
3-– 1 –
4-Chapter 415
5-(House Bill 76)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb0076*
89
9-Community Solar Energy Generating Systems – Exemption From Energy and
10-Property Taxes
10+HOUSE BILL 76
11+Q1, Q7 2lr1247
12+ (PRE–FILED) CF SB 264
13+By: Delegate Smith Delegates Smith, C. Branch, Charles, Ebersole, Feldmark,
14+Palakovich Carr, and Wilkins
15+Requested: November 1, 2021
16+Introduced and read first time: January 12, 2022
17+Assigned to: Ways and Means
18+Committee Report: Favorable with amendments
19+House action: Adopted
20+Read second time: March 13, 2022
1121
12-FOR the purpose of exempting certain community solar energy generating systems from
13-local energy taxes and personal property taxes; prohibiting the supervisor of a county
14-or a municipal corporation from accepting applications for the exemption after a
15-certain date; requiring the State Department of Assessments and Taxation to report
16-annually certain information to certain committees of the General Assembly; and
17-generally relating to tax exemptions an exemption from the personal property tax
18-for community solar energy generating systems.
22+CHAPTER ______
1923
20-BY adding to
21- Article – Local Government
22-Section 20–203 to be under the amended subtitle “Subtitle 2. Limitations on
23-Authority to Tax”
24- Annotated Code of Maryland
25- (2013 Volume and 2021 Supplement)
24+AN ACT concerning 1
2625
27-BY repealing and reenacting, with amendments,
28- Article – Tax – Property
29-Section 7–237
30- Annotated Code of Maryland
31- (2019 Replacement Volume and 2021 Supplement)
26+Community Solar Energy Generating Systems – Exemption From Energy and 2
27+Property Taxes 3
3228
33- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
34-That the Laws of Maryland read as follows:
29+FOR the purpose of exempting certain community solar energy generating systems from 4
30+local energy taxes and personal property taxes; prohibiting the supervisor of a county 5
31+or a municipal corporation from accepting applications for the exemption after a 6
32+certain date; requiring the State Department of Assessments and Taxation to report 7
33+annually certain information to certain committees of the General Assembly; and 8
34+generally relating to tax exemptions an exemption from the personal property tax 9
35+for community solar energy generating systems. 10
3536
36-Article – Local Government
37+BY adding to 11
38+ Article – Local Government 12
39+Section 20–203 to be under the amended subtitle “Subtitle 2. Limitations on 13
40+Authority to Tax” 14
41+ Annotated Code of Maryland 15
42+ (2013 Volume and 2021 Supplement) 16
3743
38-Subtitle 2. Limitations on Authority to Tax [Advertising].
44+BY repealing and reenacting, with amendments, 17
45+ Article – Tax – Property 18
46+Section 7–237 19
47+ Annotated Code of Maryland 20
48+ (2019 Replacement Volume and 2021 Supplement) 21 2 HOUSE BILL 76
3949
40-20–203.
4150
42- (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
43-INDICATED.
4451
45- (2) “BROWNFIELD” MEANS:
52+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
53+That the Laws of Maryland read as follows: 2
4654
47- (I) A FORMER INDUSTRIAL OR COMMERCIAL SITE IDENTIFIED
48-BY FEDERAL OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR POLLUTED ; Ch. 415 2022 LAWS OF MARYLAND
55+Article – Local Government 3
4956
50-– 2 –
57+Subtitle 2. Limitations on Authority to Tax [Advertising]. 4
5158
52- (II) A CLOSED MUNICIPAL O R RUBBLE LANDFILL RE GULATED
53-UNDER A REFUSE DISPO SAL PERMIT BY THE MARYLAND DEPARTMENT OF THE
54-ENVIRONMENT ; OR
59+20–203. 5
5560
56- (III) MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01.
61+ (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 6
62+INDICATED. 7
5763
58- (3) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS THE
59-MEANING STATED IN § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE.
64+ (2) “BROWNFIELD” MEANS: 8
6065
61- (4) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN § 1–101 OF
62-THE PUBLIC UTILITIES ARTICLE.
66+ (I) A FORMER INDUSTRIAL OR COMMERCIAL SITE I DENTIFIED 9
67+BY FEDERAL OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR POLLUTED ; 10
6368
64- (B) NOTWITHSTANDING ANY O THER LAW, A TAX IMPOSED BY A P OLITICAL
65-SUBDIVISION OF THE STATE ON THE SALE , USE, DELIVERY, DISTRIBUTION,
66-PRODUCTION , OR CONSUMPTION OF EN ERGY DOES NOT APPLY TO ENERGY
67-PRODUCED BY A COMMUN ITY SOLAR ENERGY GEN ERATING SYSTEM THAT:
69+ (II) A CLOSED MUNICIPAL O R RUBBLE LANDFILL RE GULATED 11
70+UNDER A REFUSE DISPO SAL PERMIT BY THE MARYLAND DEPARTMENT OF THE 12
71+ENVIRONMENT ; OR 13
6872
69- (1) PROVIDES AT LEAST 50% OF THE ENERGY IT PRO DUCES TO
70-LOW– OR MODERATE –INCOME CUSTOMERS , AS DEFINED IN REGULA TIONS OF THE
71-PUBLIC SERVICE COMMISSION, AT A COST THAT IS AT LEAST 20% LESS THAN THE
72-AMOUNT CHARGED BY TH E ELECTRIC COMPANY T HAT SERVES THE AREA WHERE
73-THE COMMUNITY SOLAR ENERGY GENERATING SY STEM IS LOCATED ; AND
73+ (III) MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01. 14
7474
75- (2) IS INSTALLED ON A RO OFTOP, PARKING FACILITY CAN OPY, OR
76-BROWNFIELD .
75+ (3) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS THE 15
76+MEANING STATED IN § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 16
7777
78- SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
79-as follows:
78+ (4) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN § 1–101 OF 17
79+THE PUBLIC UTILITIES ARTICLE. 18
8080
81-Article – Tax – Property
81+ (B) NOTWITHSTANDING ANY O THER LAW, A TAX IMPOSED BY A P OLITICAL 19
82+SUBDIVISION OF THE STATE ON THE SALE , USE, DELIVERY, DISTRIBUTION, 20
83+PRODUCTION , OR CONSUMPTION OF EN ERGY DOES NOT APPLY TO ENERGY 21
84+PRODUCED BY A COMMUNITY SOLAR ENER GY GENERATING SYSTEM THAT: 22
8285
83-7–237.
86+ (1) PROVIDES AT LEAST 50% OF THE ENERGY IT PRO DUCES TO 23
87+LOW– OR MODERATE –INCOME CUSTOMERS , AS DEFINED IN REGULA TIONS OF THE 24
88+PUBLIC SERVICE COMMISSION, AT A COST THAT IS AT LEAST 20% LESS THAN THE 25
89+AMOUNT CHA RGED BY THE ELECTRIC COMPANY THAT SERVES THE AREA WHERE 26
90+THE COMMUNITY SOLAR ENERGY GENERATING SY STEM IS LOCATED ; AND 27
8491
85- (a) Except as provided in subsection (b) of this section, personal property is
86-exempt from property tax if the property is machinery or equipment used to generate:
92+ (2) IS INSTALLED ON A RO OFTOP, PARKING FACILITY CAN OPY, OR 28
93+BROWNFIELD . 29
94+ HOUSE BILL 76 3
8795
88- (1) electricity or steam for sale; or
8996
90- (2) hot or chilled water for sale that is used to heat or cool a building.
97+ SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 1
98+as follows: 2
9199
92- (b) Subject to § 7–514 of this title, AND EXCEPT AS PROVID ED IN SUBSECTION
93-(C) OF THIS SECTION , personal property that is machinery or equipment described in
94-subsection (a) of this section is subject to county or municipal corporation property tax on: LAWRENCE J. HOGAN, JR., Governor Ch. 415
100+Article – Tax – Property 3
95101
96-– 3 –
102+7–237. 4
97103
98- (1) 75% of its value for the taxable year beginning July 1, 2000; and
104+ (a) Except as provided in subsection (b) of this section, personal property is 5
105+exempt from property tax if the property is machinery or equipment used to generate: 6
99106
100- (2) 50% of its value for the taxable year beginning July 1, 2001 and each
101-subsequent taxable year.
107+ (1) electricity or steam for sale; or 7
102108
103- (C) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HAVE THE
104-MEANINGS INDICATED .
109+ (2) hot or chilled water for sale that is used to heat or cool a building. 8
105110
106- (II) “BROWNFIELD” MEANS:
111+ (b) Subject to § 7–514 of this title, AND EXCEPT AS PROVID ED IN SUBSECTION 9
112+(C) OF THIS SECTION , personal property that is machinery or equipment described in 10
113+subsection (a) of this section is subject to county or municipal corporation property tax on: 11
107114
108- 1. A FORMER INDUSTRIAL OR COMMERCIAL SITE
109-IDENTIFIED BY FEDERA L OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR
110-POLLUTED; OR
115+ (1) 75% of its value for the taxable year beginning July 1, 2000; and 12
111116
112- 2. A CLOSED MUNICIPAL O R RUBBLE LANDFILL
113-REGULATED UNDER A REFUSE DISPOSAL PERMIT BY T HE MARYLAND DEPARTMENT
114-OF THE ENVIRONMENT ; OR.
117+ (2) 50% of its value for the taxable year beginning July 1, 2001 and each 13
118+subsequent taxable year. 14
115119
116- 3. MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01.
120+ (C) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 15
121+MEANINGS INDICATED . 16
117122
118- (III) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS
119-THE MEANING STATED I N § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE.
123+ (II) “BROWNFIELD” MEANS: 17
120124
121- (IV) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN §
122-1–101 OF THE PUBLIC UTILITIES ARTICLE.
125+ 1. A FORMER INDUSTRIAL OR COMMERCIAL SITE 18
126+IDENTIFIED BY FEDERA L OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR 19
127+POLLUTED; OR 20
123128
124- (2) PERSONAL PROPERTY IS EXEMPT FROM COUNTY O R MUNICIPAL
125-CORPORATION PROPERTY TAX IF THE PROPERTY IS MACHINERY OR EQUI PMENT
126-THAT:
129+ 2. A CLOSED MUNICIPAL OR RUBBLE LANDFILL 21
130+REGULATED UNDER A RE FUSE DISPOSAL PERMIT BY THE MARYLAND DEPARTMENT 22
131+OF THE ENVIRONMENT ; OR. 23
127132
128- (I) AS DEFINED IN REGULATION OF THE PUBLIC SERVICE
129-COMMISSION, IS PART OF A COMMUNI TY SOLAR ENERGY GENE RATING SYSTEM
130-THAT:
133+ 3. MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01. 24
131134
132- 1. HAS A GENERATING CAP ACITY THAT DOES NOT
133-EXCEED 2 MEGAWATTS AS MEASURE D BY THE ALTERNATING CURRENT RATING OF
134-THE SYSTEM’S INVERTER; AND
135+ (III) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS 25
136+THE MEANING STATED I N § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 26
135137
136- 2. PROVIDES AT LEAST 50% OF THE ENERGY IT
137-PRODUCES TO LOW – OR MODERATE –INCOME CUSTOMERS , AS DEFINED IN
138-REGULATIONS OF THE PUBLIC SERVICE COMMISSION, AT A COST THAT IS AT LEAST
139-20% LESS THAN THE AMOUNT CHARGED BY THE ELECT RIC COMPANY THAT SER VES Ch. 415 2022 LAWS OF MARYLAND
138+ (IV) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN § 27
139+1–101 OF THE PUBLIC UTILITIES ARTICLE. 28
140+ 4 HOUSE BILL 76
140141
141-– 4 –
142-THE AREA WH ERE THE COMMUNITY SO LAR ENERGY GENERATIN G SYSTEM IS
143-LOCATED; AND
144142
145- (II) IS INSTALLED ON A RO OFTOP, PARKING FACILITY CAN OPY,
146-OR BROWNFIELD .
143+ (2) PERSONAL PROPERTY IS EXEMPT FROM COUNTY O R MUNICIPAL 1
144+CORPORATION PROPERTY TAX IF THE PROPERTY IS MACHINERY OR E QUIPMENT 2
145+THAT: 3
147146
148- (3) PERSONAL PROPERTY THA T RECEIVES AN EXEMPT ION UNDER
149-THIS SUBSECTION IS E XEMPT FROM COUNTY OR MUNICIPAL CORPORATION
150-PROPERTY TAX FOR EAC H TAXABLE YEAR IN WH ICH THE PROPERTY CON TINUES TO
151-MEET THE REQUIREMENT S FOR THE EXEMPTION UNDER PARAGRAPH (2) OF THIS
152-SUBSECTION.
147+ (I) AS DEFINED IN REGULA TION OF THE PUBLIC SERVICE 4
148+COMMISSION, IS PART OF A COMMUNI TY SOLAR ENERGY GENE RATING SYSTEM 5
149+THAT: 6
153150
154- (4) THE SUPERVISOR OF A C OUNTY OR A MUNICIPAL CORPORATION
155-MAY NOT ACCEPT AN AP PLICATION FRO M A PROPERTY OWNER F OR THE EXEMPTION
156-UNDER THIS SUBSECTIO N AFTER DECEMBER 31, 2024.
151+ 1. HAS A GENERATING CAP ACITY THAT DOES NOT 7
152+EXCEED 2 MEGAWATTS AS MEASURE D BY THE ALTERNATING CURRENT RATING OF 8
153+THE SYSTEM’S INVERTER; AND 9
157154
158- (5) ON OR BEFORE OCTOBER 1 EACH YEAR, THE DEPARTMENT SHALL
159-REPORT TO THE SENATE BUDGET AND TAXATION COMMITTEE AND THE HOUSE
160-WAYS AND MEANS COMMITTEE, IN ACCORDANCE WITH § 2–1257 OF THE STATE
161-GOVERNMENT ARTICLE, ON THE NUMBER AND LO CATION OF PROJECTS T HAT, IN
162-THE IMMEDIATELY PREC EDING TAXABLE YEAR , HAVE RECEIVED THE EX EMPTION
163-UNDER THIS SUBSECTIO N.
155+ 2. PROVIDES AT LEAST 50% OF THE ENERGY IT 10
156+PRODUCES TO LOW – OR MODERATE –INCOME CUSTOMERS , AS DEFINED IN 11
157+REGULATIONS OF THE PUBLIC SERVICE COMMISSION, AT A COST THAT IS AT LEAST 12
158+20% LESS THAN THE AMOUNT CHARGED BY THE ELECT RIC COMPANY THAT SER VES 13
159+THE AREA WHERE THE C OMMUNITY SOLAR ENERG Y GENERATING SYSTEM IS 14
160+LOCATED; AND 15
164161
165- SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall b e
166-applicable to all taxable years beginning after June 30, 2022.
162+ (II) IS INSTALLED ON A RO OFTOP, PARKING FACILITY CAN OPY, 16
163+OR BROWNFIELD . 17
167164
168- SECTION 4. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take
169-effect July 1, 2022.
165+ (3) PERSONAL PROPERTY THA T RECEIVES AN EXEMPT ION UNDER 18
166+THIS SUBSECTION IS EXEMPT FROM COUNTY O R MUNICIPAL CORPORAT ION 19
167+PROPERTY TAX FOR EAC H TAXABLE YEAR IN WH ICH THE PROPERTY CON TINUES TO 20
168+MEET THE REQUIREMENT S FOR THE EXEMPTION UNDER PARAGRAPH (2) OF THIS 21
169+SUBSECTION. 22
170170
171- SECTION 5. 2. AND BE IT FURTHER ENACTED, That , except as provided in
172-Section 4 of this Act, this Act shall take effect June 1, 2022, and shall be applicable to all
173-taxable years beginning after June 30, 2022.
171+ (4) THE SUPERVISOR OF A C OUNTY OR A MUNICIPAL CORPORATION 23
172+MAY NOT ACCEPT AN APP LICATION FROM A PROP ERTY OWNER FOR THE E XEMPTION 24
173+UNDER THIS SUBSECTIO N AFTER DECEMBER 31, 2024. 25
174174
175-Approved by the Governor, May 16, 2022.
175+ (5) ON OR BEFORE OCTOBER 1 EACH YEAR, THE DEPARTMENT SHALL 26
176+REPORT TO THE SENATE BUDGET AND TAXATION COMMITTEE AND THE HOUSE 27
177+WAYS AND MEANS COMMITTEE, IN ACCORDANCE WITH § 2–1257 OF THE STATE 28
178+GOVERNMENT ARTICLE, ON THE NUMBER AND LO CATION OF PROJECTS T HAT, IN 29
179+THE IMMEDIATELY PREC EDING TAXABLE YEAR , HAVE RECEIVED THE EX EMPTION 30
180+UNDER THIS SUBSECTIO N. 31
181+
182+ SECTION 3. AND BE IT FURTHER ENACTED, Th at Section 2 of this Act shall be 32
183+applicable to all taxable years beginning after June 30, 2022. 33
184+
185+ SECTION 4. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take 34
186+effect July 1, 2022. 35 HOUSE BILL 76 5
187+
188+
189+
190+ SECTION 5. 2. AND BE IT FURTHER ENACTED, That , except as provided in 1
191+Section 4 of this Act, this Act shall take effect June 1, 2022, and shall be applicable to all 2
192+taxable years beginning after June 30, 2022. 3
193+
194+
195+
196+Approved:
197+________________________________________________________________________________
198+ Governor.
199+________________________________________________________________________________
200+ Speaker of the House of Delegates.
201+________________________________________________________________________________
202+ President of the Senate.