EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
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Underlining indicates amendments to bill.
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amendment.
*sb0733*
SENATE BILL 733
Q8 4lr2646
By: Senator Carter
Introduced and read first time: January 31, 2024
Assigned to: Budget and Taxation
Committee Report: Favorable
Senate action: Adopted
Read second time: March 2, 2024
CHAPTER ______
AN ACT concerning 1
Task Force to Study Transparency in Tax Incentives 2
FOR the purpose of establishing the Task Force to Study Transparency in Tax Incentives 3
to study and recommend a uniform process for evaluating certain tax incentives; and 4
generally relating to the Task Force to Study Transparency in Tax Incentives. 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That: 7
(a) In this section, “tax incentives” means: 8
(1) tax increment financing authorized under Title 12, Subtitle 2 of the 9
Economic Development Article; 10
(2) payments in lieu of taxes authorized under Title 7, Subtitle 5 of the Tax 11
– Property Article; 12
(3) the Enterprise Zone property tax credit required under § 9–103 of the 13
Tax – Property Article; and 14
(4) the Brownfields Revitalization Incentive Program established under § 15
5–335 of the Economic Development Article. 16
(b) There is a Task Force to Study Transparency in Tax Incentives. 17
2 SENATE BILL 733
(c) The Task Force consists of the following members: 1
(1) one member of the Senate of Maryland, appointed by the President of 2
the Senate; 3
(2) one member of the House of Delegates, appointed by the Speaker of the 4
House; 5
(3) the Executive Director of the State Department of Assessments and 6
Taxation, or the Executive Director’s designee; and 7
(4) the following members, appointed by the Governor: 8
(i) three members who are experts in technology and data collection; 9
(ii) two members who are experts in real estate development or 10
related fields; 11
(iii) one elected official from the jurisdiction with the largest amount 12
of forgone revenue calculated on a per capita basis for fiscal year 2024 attributable to the 13
tax incentives; 14
(iv) one elected official from the jurisdiction with the second largest 15
amount of forgone revenue calculated on a per capita basis for fiscal year 2024 attributable 16
to the tax incentives; and 17
(v) one representative of the primary economic development 18
authority for the jurisdiction with the largest amount of forgone revenue calculated on a 19
per capita basis for fiscal year 2024 attributable to the tax incentives. 20
(d) The Governor shall designate the chair of the Task Force. 21
(e) The State Department of Assessments and Taxation shall provide staff for the 22
Task Force. 23
(f) A member of the Task Force: 24
(1) may not receive compensation as a member of the Task Force; but 25
(2) is entitled to reimbursement for expenses under the Standard State 26
Travel Regulations, as provided in the State budget. 27
(g) The Task Force shall: 28
(1) study the use and performance of the tax incentives; 29
SENATE BILL 733 3
(2) identify the most appropriate performance metrics for evaluating the 1
tax incentives; 2
(3) collect data, for the last 5 years, necessary to evaluate the tax incentives 3
using the most appropriate performance metrics; and 4
(4) make recommendations regarding: 5
(i) the implementation of uniform reporting for data on and 6
evaluation of the tax incentives; 7
(ii) the method for processing, presenting, and preserving data on 8
the tax incentives; 9
(iii) the establishment of standard performance metrics to evaluate 10
the tax incentives; and 11
(iv) the creation of a public database to make the data and 12
performance evaluation of the tax incentives publicly available. 13
(h) On or before July 1, 2025, the Task Force shall report its findings and 14
recommendations to the Governor, the governing body of any local government that 15
provides a tax incentive, and, in accordance with § 2–1257 of the State Government Article, 16
the General Assembly. 17
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 18
1, 2024. It shall remain effective for a period of 1 year and 6 months and, at the end of 19
December 31, 2025, this Act, with no further action required by the General Assembly, shall 20
be abrogated and of no further force and effect. 21
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.