EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1281*
HOUSE BILL 1281
C8, Q1, Q7 4lr2216
CF SB 14
By: Delegates Hartman, Amprey, Anderton, Arentz, Barnes, Boafo , Buckel,
Chisholm, Ghrist, Griffith, Harris, Hornberger, Ivey, Mangione, McComas,
T. Morgan, Otto, Pippy, Rose, and Spiegel
Introduced and read first time: February 9, 2024
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Economic Development – Tourism Zones – Designation and Benefits 2
FOR the purpose of authorizing the Mayor and City Council of Baltimore City or the 3
governing body of a county or municipality to designate, by law, an area within that 4
political subdivision as a tourism zone under certain circumstances; providing that 5
the designation of an area as a tourism zone may not preclude the area from also 6
being designated as a certain arts and entertainment district; authorizing a county 7
or municipality to exempt from the admissions and amusement tax gross receipts 8
from certain admissions or amusement charges levied in a tourism zone; authorizing 9
the Mayor and City Council of Baltimore City or the governing body of a county or 10
municipality to grant, by law, a property tax credit against the county or municipal 11
property tax imposed on certain real property and certain personal property located 12
within a tourism zone; and generally relating to the designation of tourism zones 13
within counties and municipalities. 14
BY adding to 15
Article – Local Government 16
Section 18–401 through 18–403 to be under the new subtitle “Subtitle 4. Tourism 17
Zones” 18
Annotated Code of Maryland 19
(2013 Volume and 2023 Supplement) 20
BY adding to 21
Article – Tax – General 22
Section 4–104(g) 23
Annotated Code of Maryland 24
(2022 Replacement Volume and 2023 Supplement) 25
BY adding to 26 2 HOUSE BILL 1281
Article – Tax – Property 1
Section 9–268 and 9–269 2
Annotated Code of Maryland 3
(2019 Replacement Volume and 2023 Supplement) 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAN D, 5
That the Laws of Maryland read as follows: 6
Article – Local Government 7
SUBTITLE 4. TOURISM ZONES. 8
18–401. 9
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 10
INDICATED. 11
(B) “QUALIFYING TOURISM EN TERPRISE” MEANS A FOR –PROFIT OR 12
NONPROFIT ENTITY THAT CONDUCTS BUSINESS WITHIN A TO URISM ZONE, SUBJECT 13
TO THE LIMITATIONS S PECIFIED BY THE POLI TICAL SUBDIVISION WI THIN WHICH 14
THE TOURISM ZONE IS LOCATED. 15
(C) “TOURISM ZONE ” MEANS A DEVELOPED ZO NE OF PUBLIC AND PRI VATE 16
USES THAT IS DESIGNA TED BY A POLITICAL SUBDIVISIO N FOR THE DEVELOPMEN T 17
OF TRAVEL AND TOURIS M AND LOCATED WITHIN THAT POLITICAL SUBDI VISION. 18
18–402. 19
(A) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 20
GOVERNING BODY OF A COUNTY OR MUNICIPALITY MAY DES IGNATE, BY LAW, AN 21
AREA WITHIN THE POLITICAL SUBDIVISION AS A TOU RISM ZONE. 22
(B) IN DESIGNATING A TOUR ISM ZONE UNDER SUBSE CTION (A) OF THIS 23
SECTION, THE POLITICAL SUBDIV ISION MAY PROVIDE , BY LAW, FOR: 24
(1) THE DURATION OF THE DESIGNATION; AND 25
(2) ELIGIBILITY CRITERIA TO QUALIFY AS A QUALIFYING TOURISM 26
ENTERPRISE. 27
(C) THE DESIGNATION OF AN AREA AS A TOURISM ZO NE DOES NOT 28
PRECLUDE THE AREA FR OM ALSO BEING DESIGN ATED AS AN ARTS AND 29
ENTERTAINMENT DISTRI CT UNDER TITLE 4, SUBTITLE 7 OF THE ECONOMIC 30
DEVELOPMENT ARTICLE. 31 HOUSE BILL 1281 3
18–403. 1
(A) IN A TOURISM ZONE : 2
(1) THE EXEMPTION FROM T HE ADMISSIONS AND AM USEMENT TAX 3
UNDER § 4–104(G) OF THE TAX – GENERAL ARTICLE APPLIES TO QUALIFYING 4
TOURISM ENTERPRISES ; AND 5
(2) THE PROPERTY TAX CRE DITS UNDER §§ 9–268 AND 9–269 OF THE 6
TAX – PROPERTY ARTICLE APPLY. 7
(B) ON OR BEFORE JULY 1 PRECEDING THE EFFECT IVE DATE OF ITS 8
ESTABLISHMENT , THE POLITICAL JURISD ICTION SHALL NOTIFY THE COMPTROLLER 9
THAT A TOURISM DISTR ICT IS ESTABLISHED . 10
(C) A POLITICAL SUBDIVISIO N THAT ESTABLISHES A TOURISM ZONE SHALL 11
NOTIFY THE COMPTROLLER OF : 12
(1) ANY QUALIFYING TOURI SM ENTERPRISES TO WH ICH THE 13
EXEMPTION FROM THE A DMISSIONS AND AMUSEM ENT TAX UNDER § 4–104(G) OF 14
THE TAX – GENERAL ARTICLE APPLIES; 15
(2) THE DATE ON WHICH TH E QUALIFYING TOURISM ENTERPRISE 16
QUALIFIED FO R THE EXEMPTION ; AND 17
(3) THE DATE, IF ANY, ON WHICH THE EXEMPTI ON FOR THE 18
QUALIFYING TOURISM E NTERPRISE EXPIRES . 19
Article – Tax – General 20
4–104. 21
(G) (1) IN THIS SUBSECTION , “QUALIFYING TOURISM E NTERPRISE” AND 22
“TOURISM ZONE ” HAVE THE MEANINGS ST ATED IN § 18–401 OF THE LOCAL 23
GOVERNMENT ARTICLE. 24
(2) A COUNTY OR A MUNICIPAL CORPO RATION MAY EXEMPT FR OM 25
THE ADMISSIONS AND A MUSEMENT TAX GROSS R ECEIPTS FROM ANY ADM ISSIONS OR 26
AMUSEMENT CHARGE LEV IED BY A QUALIFYING TOURISM ENTERPRISE I N A 27
TOURISM ZONE . 28
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 29
as follows: 30 4 HOUSE BILL 1281
Article – Tax – Property 1
9–268. 2
(A) IN THIS SECTION, “QUALIFYING TOURISM E NTERPRISE” AND “TOURISM 3
ZONE” HAVE THE MEANINGS ST ATED IN § 18–401 OF THE LOCAL GOVERNMENT 4
ARTICLE. 5
(B) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 6
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATIO N MAY GRANT, BY LAW, 7
A PROPERTY TAX CREDI T AGAINST THE COUNTY OR MUNICIPAL CORPORA TION 8
PROPERTY TAX IMPOSED ON A BUILDING THAT : 9
(1) IS LOCATED IN A TOURISM ZONE ; AND 10
(2) IS OWNED BY A QUALIF YING TOURISM ENTERPR ISE. 11
(C) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 12
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATIO N MAY PROVIDE , BY 13
LAW, FOR: 14
(1) THE AMOUNT AND DURAT ION OF THE TAX CR EDIT UNDER THIS 15
SECTION; 16
(2) ADDITIONAL ELIGIBILI TY CRITERIA FOR THE TAX CREDIT UNDER 17
THIS SECTION; 18
(3) REGULATIONS AND PROC EDURES FOR THE APPLI CATION AND 19
UNIFORM PROCESSING O F REQUESTS FOR THE T AX CREDIT; AND 20
(4) ANY OTHER PROVISION NECESSARY TO CARRY OUT THE TAX 21
CREDIT UNDER THIS SE CTION. 22
9–269. 23
(A) IN THIS SECTION, “QUALIFYING TOURISM E NTERPRISE” AND “TOURISM 24
ZONE” HAVE THE MEANINGS ST ATED IN § 18–401 OF THE LOCAL GOVERNMENT 25
ARTICLE. 26
(B) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 27
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATIO N MAY GRANT, BY LAW, 28
A PROPERTY TAX CREDI T AGAINST THE COUNTY OR MUNICIPAL CORPORA TION 29 HOUSE BILL 1281 5
PROPERTY TAX IMPOSED ON PERSONAL PROPERTY OF A QUALIFYING TOUR ISM 1
ENTERPRISE THAT IS L OCATED WITHIN A TOUR ISM ZONE. 2
(C) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 3
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATIO N MAY PROVIDE , BY 4
LAW, FOR: 5
(1) THE AMOUNT AND DURAT ION OF THE TAX CREDI T UNDER THIS 6
SECTION; 7
(2) ADDITIONAL ELIGIBILI TY CRITERIA FOR THE TAX CREDIT UNDER 8
THIS SECTION; 9
(3) REGULATIONS AND PROC EDURES FOR THE APPLI CATION AND 10
UNIFORM PROCESSING O F REQUESTS FOR THE T AX CREDIT; AND 11
(4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THE TAX 12
CREDIT UNDER THIS SE CTION. 13
SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 14
applicable to all taxable years beginning after June 30, 2024. 15
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June 16
1, 2024. 17