EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 7, 2024
CHAPTER ______
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 2 HOUSE BILL 1281
Article – Tax – General 1
Section 4–104(g) 2
Annotated Code of Maryland 3
(2022 Replacement Volume and 2023 Supplement) 4
BY adding to 5
Article – Tax – Property 6
Section 9–268 and 9–269 7
Annotated Code of Maryland 8
(2019 Replacement Volume and 2023 Supplement) 9
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That the Laws of Maryland read as follows: 11
Article – Local Government 12
SUBTITLE 4. TOURISM ZONES. 13
18–401. 14
(A) IN THIS SUBTITLE THE FOLLOWING WORDS H AVE THE MEANINGS 15
INDICATED. 16
(B) “QUALIFYING TOURISM EN TERPRISE” MEANS A FOR –PROFIT OR 17
NONPROFIT ENTITY THA T CONDUCTS BUSINESS WITHIN A TOURISM ZON E, SUBJECT 18
TO THE LIMITATIONS S PECIFIED BY THE POLI TICAL SUBDIVISION WI THIN WHICH 19
THE TOURISM ZONE IS LOCATED. 20
(C) “TOURISM ZONE ” MEANS A DEVELOPED ZO NE OF PUBLIC AND PRI VATE 21
USES THAT IS DESIGNA TED BY A POLITICAL S UBDIVISION FOR THE D EVELOPMENT 22
OF TRAVEL AND TOURIS M AND LOCATED WITHIN THAT POLITICAL SUBDI VISION. 23
18–402. 24
(A) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 25
GOVERNING BODY OF A COUNTY OR MUNICIPALI TY MAY DESIGNATE , BY LAW, AN 26
AREA WITHIN THE POLI TICAL SUBDIVISION AS A TOURISM ZONE . 27
(B) IN DESIGNATING A TOUR ISM ZONE UNDER SUBSE CTION (A) OF THIS 28
SECTION, THE POLITICAL SUBDIV ISION MAY PROVIDE, BY LAW, FOR: 29
(1) THE DURATION OF THE DESIGNATION; AND 30
(2) ELIGIBILITY CRITERIA TO QUALIFY AS A QUAL IFYING TOURISM 31
ENTERPRISE. 32 HOUSE BILL 1281 3
(C) THE DESIGNATION OF AN AREA AS A TOURISM ZO NE DOES NOT 1
PRECLUDE THE AREA FR OM ALSO BEING DESIGN ATED AS AN ARTS AND 2
ENTERTAINMENT DISTRI CT UNDER TITLE 4, SUBTITLE 7 OF THE ECONOMIC 3
DEVELOPMENT ARTICLE. 4
18–403. 5
(A) IN A TOURISM ZONE : 6
(1) THE EXEMPTION FROM T HE ADMISSIONS AND AM USEMENT TAX 7
UNDER § 4–104(G) OF THE TAX – GENERAL ARTICLE APPLIES TO QU ALIFYING 8
TOURISM ENTERPRISES ; AND 9
(2) THE PROPERTY TAX CRE DITS UNDER §§ 9–268 AND 9–269 OF THE 10
TAX – PROPERTY ARTICLE APPLY. 11
(B) ON OR BEFORE JULY 1 PRECEDING THE EFFECT IVE DATE OF ITS 12
ESTABLISHMENT , THE POLITICAL JURISD ICTION SHALL NOTIFY THE COMPTROLLER 13
THAT A TOURISM DISTRICT IS ESTABLISHED. 14
(C) A POLITICAL SUBDIVISIO N THAT ESTABLISHES A TOURISM ZONE SHALL 15
NOTIFY THE COMPTROLLER OF : 16
(1) ANY QUALIFYING TOURI SM ENTERPRISES TO WH ICH THE 17
EXEMPTION FROM THE A DMISSIONS AND AMUSEM ENT TAX UNDER § 4–104(G) OF 18
THE TAX – GENERAL ARTICLE APPLIES; 19
(2) THE DATE ON WHICH TH E QUALIFYING TOURISM ENTERPRISE 20
QUALIFIED FOR THE EX EMPTION; AND 21
(3) THE DATE, IF ANY, ON WHICH THE EXEMPTI ON FOR THE 22
QUALIFYING TOURISM E NTERPRISE EXPIRES . 23
Article – Tax – General 24
4–104. 25
(G) (1) IN THIS SUBSECTION , “QUALIFYING TOURISM E NTERPRISE” AND 26
“TOURISM ZONE ” HAVE THE MEANINGS ST ATED IN § 18–401 OF THE LOCAL 27
GOVERNMENT ARTICLE. 28
(2) (I) A SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 29
COUNTY OR A MUNICIPA L CORPORATION MAY EX EMPT FROM THE ADMISSIONS AND 30 4 HOUSE BILL 1281
AMUSEMENT TAX GROSS RECEIPTS FROM ANY AD MISSIONS OR AMUSEMEN T CHARGE 1
LEVIED BY A QUALIFYI NG TOURISM ENTERPRIS E IN A TOURISM ZONE . 2
(II) THE EXEMPTION AUTHORI ZED UNDER SUBPARAGRA PH (I) 3
OF THIS PARAGRAPH DO ES NOT APPLY TO THE STATE ADMISSIONS AND AMUSEMENT 4
TAX IMPOSED UNDER § 4–102(D) AND (E) OF THIS SUBTITLE. 5
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 6
as follows: 7
Article – Tax – Property 8
9–268. 9
(A) IN THIS SECTION, “QUALIFYING TOURISM E NTERPRISE” AND “TOURISM 10
ZONE” HAVE THE MEANINGS ST ATED IN § 18–401 OF THE LOCAL GOVERNMENT 11
ARTICLE. 12
(B) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 13
GOVERNING BODY OF A COUNTY OR MUNICIPA L CORPORATION MAY GR ANT, BY LAW, 14
A PROPERTY TAX CREDI T AGAINST THE COUNTY OR MUNICIPAL CORPORA TION 15
PROPERTY TAX IMPOSED ON A BUILDING THAT : 16
(1) IS LOCATED IN A TOUR ISM ZONE; AND 17
(2) IS OWNED BY A QUALIF YING TOURISM ENTERPR ISE. 18
(C) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 19
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY PROV IDE, BY 20
LAW, FOR: 21
(1) THE AMOUNT AND DURAT ION OF THE TAX CREDI T UNDER THIS 22
SECTION; 23
(2) ADDITIONAL ELIGIBILI TY CRITERIA FOR THE TAX CREDIT UNDER 24
THIS SECTION; 25
(3) REGULATIONS AND PROC EDURES FOR THE APPLI CATION AND 26
UNIFORM PROCESSING O F REQUESTS FOR THE T AX CREDIT; AND 27
(4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THE TAX 28
CREDIT UNDER THIS SE CTION. 29
9–269. 30
HOUSE BILL 1281 5
(A) IN THIS SECTION, “QUALIFYING TOURISM E NTERPRISE” AND “TOURISM 1
ZONE” HAVE THE MEANINGS ST ATED IN § 18–401 OF THE LOCAL GOVERNMENT 2
ARTICLE. 3
(B) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 4
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY GRAN T, BY LAW, 5
A PROPERTY TAX CREDIT AGAI NST THE COUNTY OR MU NICIPAL CORPORATION 6
PROPERTY TAX IMPOSED ON PERSONAL PROPERTY OF A QUALIFYING TOUR ISM 7
ENTERPRISE THAT IS L OCATED WITHIN A TOUR ISM ZONE. 8
(C) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 9
GOVERNING BODY OF A COUNTY OR MUNICIPAL CO RPORATION MAY PROVID E, BY 10
LAW, FOR: 11
(1) THE AMOUNT AND DURAT ION OF THE TAX CREDI T UNDER THIS 12
SECTION; 13
(2) ADDITIONAL ELIGIBILI TY CRITERIA FOR THE TAX CREDIT UNDER 14
THIS SECTION; 15
(3) REGULATIONS AND PROC EDURES FOR THE APPLI CATION AND 16
UNIFORM PROCESSING O F REQUESTS FOR THE T AX CREDIT; AND 17
(4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THE TAX 18
CREDIT UNDER THIS SE CTION. 19
SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 20
applicable to all taxable years beginning after June 30, 2024. 21
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June 22
1, 2024. 23
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.