| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | ||
| 2 | 2 | ||
| 3 | 3 | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. | |
| 4 | 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 | 5 | *sb0264* | |
| 9 | 6 | ||
| 10 | 7 | SENATE BILL 264 | |
| 11 | 8 | Q1, Q7 2lr1398 | |
| 12 | 9 | CF HB 76 | |
| 13 | 10 | By: Senators Elfreth, McCray, Hershey, Kramer, Augustine, and Feldman | |
| 14 | 11 | Introduced and read first time: January 14, 2022 | |
| 15 | 12 | Assigned to: Budget and Taxation | |
| 16 | - | Committee Report: Favorable with amendments | |
| 17 | - | Senate action: Adopted | |
| 18 | - | Read second time: February 28, 2022 | |
| 19 | 13 | ||
| 20 | - | ||
| 14 | + | A BILL ENTITLED | |
| 21 | 15 | ||
| 22 | 16 | AN ACT concerning 1 | |
| 23 | 17 | ||
| 24 | 18 | Community Solar Energy Generating Systems – Exemption From Energy and 2 | |
| 25 | 19 | Property Taxes 3 | |
| 26 | 20 | ||
| 27 | 21 | FOR the purpose of exempting certain community solar energy generating systems from 4 | |
| 28 | - | local energy taxes and personal property taxes; prohibiting the supervisor of a county 5 | |
| 29 | - | or a municipal corporation from accepting applications for the exemption after a 6 | |
| 30 | - | certain date; requiring the State Department of Assessments and Taxation to report 7 | |
| 31 | - | annually certain information to certain committees of the General Assembly; and 8 | |
| 32 | - | generally relating to tax exemptions an exemption from the personal property tax 9 | |
| 33 | - | for community solar energy generating systems. 10 | |
| 22 | + | local energy taxes and personal property taxes; and generally relating to tax 5 | |
| 23 | + | exemptions for community solar energy generating systems. 6 | |
| 34 | 24 | ||
| 35 | - | BY adding to | |
| 36 | - | Article – Local Government | |
| 37 | - | Section 20–203 to be under the amended subtitle “Subtitle 2. Limitations on | |
| 38 | - | Authority to Tax” | |
| 39 | - | Annotated Code of Maryland | |
| 40 | - | (2013 Volume and 2021 Supplement) | |
| 25 | + | BY adding to 7 | |
| 26 | + | Article – Local Government 8 | |
| 27 | + | Section 20–203 to be under the amended subtitle “Subtitle 2. Limitations on 9 | |
| 28 | + | Authority to Tax” 10 | |
| 29 | + | Annotated Code of Maryland 11 | |
| 30 | + | (2013 Volume and 2021 Supplement) 12 | |
| 41 | 31 | ||
| 42 | - | BY repealing and reenacting, with amendments, 17 | |
| 43 | - | Article – Tax – Property 18 | |
| 44 | - | Section 7–237 19 | |
| 45 | - | Annotated Code of Maryland 20 | |
| 46 | - | (2019 Replacement Volume and 2021 Supplement) 21 | |
| 47 | - | 2 SENATE BILL 264 | |
| 32 | + | BY repealing and reenacting, with amendments, 13 | |
| 33 | + | Article – Tax – Property 14 | |
| 34 | + | Section 7–237 15 | |
| 35 | + | Annotated Code of Maryland 16 | |
| 36 | + | (2019 Replacement Volume and 2021 Supplement) 17 | |
| 37 | + | ||
| 38 | + | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18 | |
| 39 | + | That the Laws of Maryland read as follows: 19 | |
| 40 | + | ||
| 41 | + | Article – Local Government 20 | |
| 42 | + | ||
| 43 | + | Subtitle 2. Limitations on Authority to Tax [Advertising]. 21 | |
| 44 | + | ||
| 45 | + | 20–203. 22 | |
| 46 | + | ||
| 47 | + | (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 23 2 SENATE BILL 264 | |
| 48 | 48 | ||
| 49 | 49 | ||
| 50 | - | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 | |
| 51 | - | That the Laws of Maryland read as follows: 2 | |
| 50 | + | INDICATED. 1 | |
| 52 | 51 | ||
| 53 | - | ||
| 52 | + | (2) “BROWNFIELD” MEANS: 2 | |
| 54 | 53 | ||
| 55 | - | Subtitle 2. Limitations on Authority to Tax [Advertising]. 4 | |
| 54 | + | (I) A FORMER INDUSTRIAL OR COMMERCIAL SITE I DENTIFIED 3 | |
| 55 | + | BY FEDERAL OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR POLLUTED ; 4 | |
| 56 | 56 | ||
| 57 | - | 20–203. 5 | |
| 57 | + | (II) A CLOSED MUNICIPAL O R RUBBLE LANDFILL RE GULATED 5 | |
| 58 | + | UNDER A REFUSE DISPO SAL PERMIT BY THE MARYLAND DEPARTMENT OF THE 6 | |
| 59 | + | ENVIRONMENT ; OR 7 | |
| 58 | 60 | ||
| 59 | - | (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 6 | |
| 60 | - | INDICATED. 7 | |
| 61 | + | (III) MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01. 8 | |
| 61 | 62 | ||
| 62 | - | (2) “BROWNFIELD” MEANS: 8 | |
| 63 | + | (3) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS THE 9 | |
| 64 | + | MEANING STAT ED IN § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 10 | |
| 63 | 65 | ||
| 64 | - | ( | |
| 65 | - | ||
| 66 | + | (4) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN § 1–101 OF 11 | |
| 67 | + | THE PUBLIC UTILITIES ARTICLE. 12 | |
| 66 | 68 | ||
| 67 | - | (II) A CLOSED MUNICIPAL O R RUBBLE LANDFILL RE GULATED 11 | |
| 68 | - | UNDER A REFUSE DISPO SAL PERMIT BY THE MARYLAND DEPARTMENT OF THE 12 | |
| 69 | - | ENVIRONMENT ; OR 13 | |
| 69 | + | (B) NOTWITHSTANDING ANY O THER LAW, A TAX IMPOSED BY A P OLITICAL 13 | |
| 70 | + | SUBDIVISION OF THE STATE ON THE SALE , USE, DELIVERY, DISTRIBUTION, 14 | |
| 71 | + | PRODUCTION , OR CONSUMPTION OF EN ERGY DOES NOT APPLY TO ENERGY 15 | |
| 72 | + | PRODUCED BY A COMMUN ITY SOLAR ENERGY GEN ERATING SYSTEM THAT : 16 | |
| 70 | 73 | ||
| 71 | - | (III) MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01. 14 | |
| 74 | + | (1) PROVIDES AT LEAST 50% OF THE ENERGY IT PRO DUCES TO 17 | |
| 75 | + | LOW– OR MODERATE –INCOME CUSTOMERS , AS DEFINED IN REGULA TIONS OF THE 18 | |
| 76 | + | PUBLIC SERVICE COMMISSION, AT A COST THAT IS AT LEAST 20% LESS THAN THE 19 | |
| 77 | + | AMOUNT CHARGED BY TH E ELECTRIC COMPANY T HAT SERVES THE AREA WHERE 20 | |
| 78 | + | THE COMMUNITY SOLAR ENERGY GENERATING SY STEM IS LOCATED ; AND 21 | |
| 72 | 79 | ||
| 73 | - | ( | |
| 74 | - | ||
| 80 | + | (2) IS INSTALLED ON A RO OFTOP, PARKING FA CILITY CANOPY , OR 22 | |
| 81 | + | BROWNFIELD . 23 | |
| 75 | 82 | ||
| 76 | - | | |
| 77 | - | ||
| 83 | + | SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 24 | |
| 84 | + | as follows: 25 | |
| 78 | 85 | ||
| 79 | - | (B) NOTWITHSTANDING ANY OTHER LAW , A TAX IMPOSED BY A P OLITICAL 19 | |
| 80 | - | SUBDIVISION OF THE STATE ON THE SALE , USE, DELIVERY, DISTRIBUTION, 20 | |
| 81 | - | PRODUCTION , OR CONSUMPTION OF EN ERGY DOES NOT APPLY TO ENERGY 21 | |
| 82 | - | PRODUCED BY A COMMUN ITY SOLAR ENERGY GEN ERATING SYSTEM THAT : 22 | |
| 86 | + | Article – Tax – Property 26 | |
| 83 | 87 | ||
| 84 | - | (1) PROVIDES AT LEAST 50% OF THE ENERGY IT PRO DUCES TO 23 | |
| 85 | - | LOW– OR MODERATE –INCOME CUSTOMERS , AS DEFINED IN REGULA TIONS OF THE 24 | |
| 86 | - | PUBLIC SERVICE COMMISSION, AT A COST THAT IS AT LEAST 20% LESS THAN THE 25 | |
| 87 | - | AMOUNT CHARGED BY TH E ELECTRIC COMPANY T HAT SERVES THE AREA WHERE 26 | |
| 88 | - | THE COMMUNITY SOLAR ENERGY GENERATING SY STEM IS LOCATED ; AND 27 | |
| 88 | + | 7–237. 27 | |
| 89 | 89 | ||
| 90 | - | ( | |
| 91 | - | ||
| 90 | + | (a) Except as provided in subsection (b) of this section, personal property is 28 | |
| 91 | + | exempt from property tax if the property is machinery or equipment used to generate: 29 | |
| 92 | 92 | ||
| 93 | - | SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 30 | |
| 94 | - | as follows: 31 SENATE BILL 264 3 | |
| 93 | + | (1) electricity or steam for sale; or 30 SENATE BILL 264 3 | |
| 95 | 94 | ||
| 96 | 95 | ||
| 97 | 96 | ||
| 98 | - | ||
| 97 | + | (2) hot or chilled water for sale that is used to heat or cool a building. 1 | |
| 99 | 98 | ||
| 100 | - | 7–237. 2 | |
| 99 | + | (b) Subject to § 7–514 of this title, AND EXCEPT AS PROVID ED IN SUBSECTION 2 | |
| 100 | + | (C) OF THIS SECTION , personal property that is machinery or equipment described in 3 | |
| 101 | + | subsection (a) of this section is subject to county or municipal corporation property tax on: 4 | |
| 101 | 102 | ||
| 102 | - | (a) Except as provided in subsection (b) of this section, personal property is 3 | |
| 103 | - | exempt from property tax if the property is machinery or equipment used to generate: 4 | |
| 103 | + | (1) 75% of its value for the taxable year beginning July 1, 2000; and 5 | |
| 104 | 104 | ||
| 105 | - | (1) electricity or steam for sale; or 5 | |
| 105 | + | (2) 50% of its value for the taxable year beginning July 1, 2001 and each 6 | |
| 106 | + | subsequent taxable year. 7 | |
| 106 | 107 | ||
| 107 | - | (2) hot or chilled water for sale that is used to heat or cool a building. 6 | |
| 108 | + | (C) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 8 | |
| 109 | + | MEANINGS INDICATED . 9 | |
| 108 | 110 | ||
| 109 | - | (b) Subject to § 7–514 of this title, AND EXCEPT AS PROVID ED IN SUBSECTION 7 | |
| 110 | - | (C) OF THIS SECTION , personal property that is machinery or equipment described in 8 | |
| 111 | - | subsection (a) of this section is subject to county or municipal corporation property tax on: 9 | |
| 111 | + | (II) “BROWNFIELD” MEANS: 10 | |
| 112 | 112 | ||
| 113 | - | (1) 75% of its value for the taxable year beginning July 1, 2000; and 10 | |
| 113 | + | 1. A FORMER INDUSTRIAL OR C OMMERCIAL SITE 11 | |
| 114 | + | IDENTIFIED BY FEDERA L OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR 12 | |
| 115 | + | POLLUTED; 13 | |
| 114 | 116 | ||
| 115 | - | (2) 50% of its value for the taxable year beginning July 1, 2001 and each 11 | |
| 116 | - | subsequent taxable year. 12 | |
| 117 | + | 2. A CLOSED MUNICIPAL O R RUBBLE LANDFILL 14 | |
| 118 | + | REGULATED UNDER A RE FUSE DISPOSAL PERMIT BY THE MARYLAND DEPARTMENT 15 | |
| 119 | + | OF THE ENVIRONMENT ; OR 16 | |
| 117 | 120 | ||
| 118 | - | (C) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HAVE THE 13 | |
| 119 | - | MEANINGS INDICATED . 14 | |
| 121 | + | 3. MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01. 17 | |
| 120 | 122 | ||
| 121 | - | (II) “BROWNFIELD” MEANS: 15 | |
| 123 | + | (III) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS 18 | |
| 124 | + | THE MEANING STATED I N § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 19 | |
| 122 | 125 | ||
| 123 | - | 1. A FORMER INDUSTRIAL OR COMMERCIAL SITE 16 | |
| 124 | - | IDENTIFIED BY FEDERA L OR STATE LAWS OR REGULAT IONS AS CONTAMINATED OR 17 | |
| 125 | - | POLLUTED; OR 18 | |
| 126 | + | (IV) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN § 20 | |
| 127 | + | 1–101 OF THE PUBLIC UTILITIES ARTICLE. 21 | |
| 126 | 128 | ||
| 127 | - | 2 | |
| 128 | - | ||
| 129 | - | ||
| 129 | + | (2) PERSONAL PROPERTY IS EXEMPT FROM COUNTY O R MUNICIPAL 22 | |
| 130 | + | CORPORATION PROPERTY TAX IF THE PROPERTY IS MACHINERY OR EQUI PMENT 23 | |
| 131 | + | THAT: 24 | |
| 130 | 132 | ||
| 131 | - | 3. MINED LANDS AS DEFIN ED IN COMAR 26.21.01.01. 22 | |
| 132 | - | ||
| 133 | - | (III) “COMMUNITY SOLAR ENERG Y GENERATING SYSTEM ” HAS 23 | |
| 134 | - | THE MEANING STATED I N § 7–306.2 OF THE PUBLIC UTILITIES ARTICLE. 24 | |
| 135 | - | ||
| 136 | - | (IV) “ELECTRIC COMPANY ” HAS THE MEANING STAT ED IN § 25 | |
| 137 | - | 1–101 OF THE PUBLIC UTILITIES ARTICLE. 26 | |
| 138 | - | ||
| 139 | - | (2) PERSONAL PROPERTY IS EXEMPT FROM COUNTY O R MUNICIPAL 27 | |
| 140 | - | CORPORATION PROPERTY TAX IF THE PROPERTY IS MACHINERY OR EQUI PMENT 28 | |
| 141 | - | THAT: 29 4 SENATE BILL 264 | |
| 133 | + | (I) IS PART OF A COMMUNI TY SOLAR ENERGY GENE RATING 25 | |
| 134 | + | SYSTEM THAT PROVIDES AT LEAST 50% OF THE ENERGY IT PRO DUCES TO LOW – OR 26 | |
| 135 | + | MODERATE–INCOME CUSTOMERS , AS DEFINED IN REGULA TIONS OF THE PUBLIC 27 | |
| 136 | + | SERVICE COMMISSION, AT A COST THAT IS AT LEAST 20% LESS THAN THE AMOUNT 28 | |
| 137 | + | CHARGED BY THE ELECT RIC COMPANY THAT SER VES THE AREA WHERE T HE 29 | |
| 138 | + | COMMUNITY SOLAR ENER GY GENERATING SYS TEM IS LOCATED ; AND 30 | |
| 139 | + | 4 SENATE BILL 264 | |
| 142 | 140 | ||
| 143 | 141 | ||
| 142 | + | (II) IS INSTALLED ON A RO OFTOP, PARKING FACILITY CAN OPY, 1 | |
| 143 | + | OR BROWNFIELD . 2 | |
| 144 | 144 | ||
| 145 | - | (I) AS DEFINED IN REGULA TION OF THE PUBLIC SERVICE 1 | |
| 146 | - | COMMISSION, IS PART OF A COMMUNI TY SOLAR ENERGY GENE RATING SYSTEM 2 | |
| 147 | - | THAT: 3 | |
| 145 | + | SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 3 | |
| 146 | + | applicable to all taxable years beginning after June 30, 2022. 4 | |
| 148 | 147 | ||
| 149 | - | 1. HAS A GENERATING CAP ACITY THAT DOES NOT 4 | |
| 150 | - | EXCEED 2 MEGAWATTS AS MEASURE D BY THE ALTERNATING CURRENT RATING OF 5 | |
| 151 | - | THE SYSTEM’S INVERTER; AND 6 | |
| 148 | + | SECTION 4. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take 5 | |
| 149 | + | effect July 1, 2022. 6 | |
| 152 | 150 | ||
| 153 | - | 2. PROVIDES AT LEAST 50% OF THE ENERGY IT 7 | |
| 154 | - | PRODUCES TO LOW – OR MODERATE –INCOME CUSTOMERS , AS DEFINED IN 8 | |
| 155 | - | REGULATIONS OF THE PUBLIC SERVICE COMMISSION, AT A COST THAT IS AT LEAST 9 | |
| 156 | - | 20% LESS THAN THE AMOUNT CHARGED BY THE ELECT RIC COMPANY THAT SER VES 10 | |
| 157 | - | THE AREA WHERE THE C OMMUNITY SOLAR ENERG Y GENERATING SYSTEM IS 11 | |
| 158 | - | LOCATED; AND 12 | |
| 151 | + | SECTION 5. AND BE IT FURTHER ENACTED, That, except as provided in Section 7 | |
| 152 | + | 4 of this Act, this Act shall take effect June 1, 2022. 8 | |
| 159 | 153 | ||
| 160 | - | (II) IS INSTALLED ON A RO OFTOP, PARKING FACILITY CAN OPY, 13 | |
| 161 | - | OR BROWNFIELD . 14 | |
| 162 | - | ||
| 163 | - | (3) PERSONAL PROPERTY THA T RECEIVES AN EXEMPT ION UNDER 15 | |
| 164 | - | THIS SUBSECTION IS E XEMPT FROM COUNTY OR MUNICIPAL CORPORATIO N 16 | |
| 165 | - | PROPERTY TAX FOR EAC H TAXABLE YEAR IN WH ICH THE PROPERTY CON TINUES TO 17 | |
| 166 | - | MEET THE REQUIREMENT S FOR THE EXEMPTION UNDER PARAGRAPH (2) OF THIS 18 | |
| 167 | - | SUBSECTION. 19 | |
| 168 | - | ||
| 169 | - | (4) THE SUPERVISOR OF A C OUNTY OR A MUNICIPAL CORPORATION 20 | |
| 170 | - | MAY NOT ACCEPT AN AP PLICATION FROM A PRO PERTY OWNER FOR THE EXEMPTION 21 | |
| 171 | - | UNDER THIS SUBSECTIO N AFTER DECEMBER 31, 2024. 22 | |
| 172 | - | ||
| 173 | - | (5) ON OR BEFORE OCTOBER 1 EACH YEAR, THE DEPARTMENT SHALL 23 | |
| 174 | - | REPORT TO THE SENATE BUDGET AND TAXATION COMMITTEE AND THE HOUSE 24 | |
| 175 | - | WAYS AND MEANS COMMITTEE, IN ACCORDANCE WITH § 2–1257 OF THE STATE 25 | |
| 176 | - | GOVERNMENT ARTICLE, ON THE NUMBER AND LO CATION OF PROJECTS T HAT, IN 26 | |
| 177 | - | THE IMMEDIATELY PREC EDING TAXABLE YEAR , HAVE RECEIVED THE EX EMPTION 27 | |
| 178 | - | UNDER THIS SUBSECTIO N. 28 | |
| 179 | - | ||
| 180 | - | SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 29 | |
| 181 | - | applicable to all taxable years beginning after June 30, 2022. 30 | |
| 182 | - | ||
| 183 | - | SECTION 4. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take 31 | |
| 184 | - | effect July 1, 2022. 32 | |
| 185 | - | ||
| 186 | - | SECTION 5. 2. AND BE IT FURTHER ENACTED, That , except as provided in 33 | |
| 187 | - | Section 4 of this Act, this Act shall take effect June 1, 2022, and shall be applicable to all 34 | |
| 188 | - | taxable years beginning after June 30, 2022. 35 |