EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
[Brackets] indicate matter deleted from existing law.
*sb0014*
SENATE BILL 14
C8, Q1, Q7 4lr1266
(PRE–FILED) CF 4lr2216
By: Senator Jackson
Requested: October 30, 2023
Introduced and read first time: January 10, 2024
Assigned to: Budget and Taxation
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 municipality to designate, by law, an area within that political 4
subdivision as a tourism zone under certain circumstances; providing that the 5
designation of an area as a tourism zone may not preclude the area from also being 6
designated as a certain arts and entertainment district; authorizing Baltimore City 7
or a 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 municipality 10
to grant, by law, a property tax credit against the county or municipal property tax 11
imposed on certain real property and certain personal property located within a 12
tourism zone; and generally relating to the designation of tourism zones within 13
Baltimore City 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
Article – Tax – Property 27 2 SENATE BILL 14
Section 9–268 and 9–269 1
Annotated Code of Maryland 2
(2019 Replacement Volume and 2023 Supplement) 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5
Article – Local Government 6
SUBTITLE 4. TOURISM ZONES. 7
18–401. 8
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 9
INDICATED. 10
(B) “QUALIFYING TOURISM EN TERPRISE” MEANS A FOR –PROFIT OR 11
NONPROFIT ENTITY THAT CONDUCTS BUSINE SS WITHIN A TOURISM ZONE, SUBJECT 12
TO THE LIMITATIONS S PECIFIED BY THE POLI TICAL SUBDIVISION WI THIN WHICH 13
THE TOURISM ZONE IS LOCATED. 14
(C) “TOURISM ZONE” MEANS A DEVELOPED ZONE OF PUBLIC AND PRIVAT E 15
USES THAT IS DESIGNA TED BY A POLITICAL S UBDIVISION FOR THE DEVELOPMENT 16
OF TRAVEL AND TOURIS M AND LOCATED WITHIN T HAT POLITICAL SUBDIV ISION. 17
18–402. 18
(A) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 19
GOVERNING BODY OF A MUNICIPALITY MAY DESIGNATE , BY LAW, AN AREA WITHIN 20
THE POLITICAL SUBDIVISIO N AS A TOURISM ZONE. 21
(B) IN DESIGNATING A TOUR ISM ZONE UNDER SUBSECTION (A) OF THIS 22
SECTION, THE POLITICAL SUBDIV ISION MAY PROVIDE, BY LAW, FOR: 23
(1) THE DURATION OF THE DESIGNATION; AND 24
(2) ELIGIBILITY CRITERIA TO QUALIFY AS A QUAL IFYING TOURISM 25
ENTERPRISE. 26
(C) THE DESIGNATION OF AN AREA AS A TOURISM ZONE DOES NOT 27
PRECLUDE THE AREA FR OM ALSO BEING DESIGN ATED AS AN ARTS AND 28
ENTERTAINMENT DISTRICT UNDER TITLE 4, SUBTITLE 7 OF THE ECONOMIC 29
DEVELOPMENT ARTICLE. 30
SENATE BILL 14 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; AND 4
(2) THE PROPERTY TAX CRE DITS UNDER §§ 9–268 AND 9–269 OF THE 5
TAX – PROPERTY ARTICLE APPLY. 6
(B) ON OR BEFORE JULY 1 PRECEDING THE EFFECT IVE DATE OF ITS 7
ESTABLISHMENT , THE POLITICAL JURISDICTI ON SHALL NOTIFY THE COMPTROLLER 8
THAT A TOURISM DISTR ICT IS ESTABLISHED . 9
(C) A POLITICAL SUBDIVISION THAT EST ABLISHES A TOURISM Z ONE SHALL 10
NOTIFY THE COMPTROLLER OF : 11
(1) ANY QUALIFYING TOURI SM ENTERPRISES TO WH ICH THE 12
EXEMPTION FROM THE A DMISSIONS AND AMUSEM ENT TAX UNDER § 4–104(G) OF 13
THE TAX – GENERAL ARTICLE APPLIES; AND 14
(2) THE DATE O N WHICH THE QUALIFYING TOURISM E NTERPRISE 15
QUALIFIED FOR THE EX EMPTION. 16
Article – Tax – General 17
4–104. 18
(G) (1) IN THIS SUBSECTION , “QUALIFYING TOURISM ENTERPRISE” AND 19
“TOURISM ZONE” HAVE THE MEANINGS ST ATED IN § 18–401 OF THE LOCAL 20
GOVERNMENT ARTICLE. 21
(2) BALTIMORE CITY OR A MUNICIPAL CORPO RATION MAY EXEMPT 22
FROM THE ADMISSIONS AND AMUSEMENT TAX GR OSS RECEIPTS FROM AN Y 23
ADMISSIONS OR AMUSEM ENT CHARGE LEVIED BY A QUALIFYING TOURISM 24
ENTERPRISE IN A TOURISM ZONE. 25
SECTION 2. AND BE IT FURTHER ENACTED, Tha t the Laws of Maryland read 26
as follows: 27
Article – Tax – Property 28
9–268. 29
4 SENATE BILL 14
(A) IN THIS SECTION, “QUALIFYING TOURISM ENTERPRISE” 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 MUNICIPAL CORPORATIO N MAY GRANT , BY LAW, A 5
PROPERTY TAX CREDIT AGAINST THE COUNTY O R MUNICIPAL CORPORAT ION 6
PROPERTY TAX IMPOSED ON A BUILDING THAT : 7
(1) IS LOCATED IN A TOURISM ZONE; AND 8
(2) IS OWNED BY A QUALIFYIN G TOURISM ENTERPRISE . 9
(C) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 10
GOVERNING BODY OF A MUNICIPAL CORPORATIO N MAY PROVIDE , BY LAW, FOR: 11
(1) THE AMOUNT AND DURAT ION OF THE TAX CREDI T UNDER THIS 12
SECTION; 13
(2) ADDITIONAL ELIGIBILIT Y CRITERIA FOR THE T AX 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 TH IS SECTION. 19
9–269. 20
(A) IN THIS SECTION, “QUALIFYING TOURISM E NTERPRISE” AND “TOURISM 21
ZONE” HAVE THE MEANINGS ST ATED IN § 18–401 OF THE LOCAL GOVERNMENT 22
ARTICLE. 23
(B) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 24
GOVERNING BODY OF A MUNICIPAL CORP ORATION MAY GRANT , BY LAW, A 25
PROPERTY TAX CREDIT AGAINST THE COUNTY O R MUNICIPAL CORPORAT ION 26
PROPERTY TAX IMPOSED ON PERSONAL PROPERTY OF A QUALIFYING TOUR ISM 27
ENTERPRISE THAT IS L OCATED WITHIN A TOUR ISM ZONE. 28
(C) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 29
GOVERNING BODY OF A MUNICIPAL CORPORATIO N MAY PROVIDE , BY LAW, FOR: 30
SENATE BILL 14 5
(1) THE AMOUNT AND DURAT ION OF THE TAX CREDI T UNDER THIS 1
SECTION; 2
(2) ADDITIONAL ELIGIBILI TY CRITERIA FOR THE TAX CREDIT UNDER 3
THIS SECTION; 4
(3) REGULATIONS AND PROCEDURES FOR THE A PPLICATION AND 5
UNIFORM PROCESSING O F REQUESTS FOR THE T AX CREDIT; AND 6
(4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THE TAX 7
CREDIT UNDER THIS SE CTION. 8
SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 9
applicable to all taxable years beginning after June 30, 2024. 10
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June 11
1, 2024. 12