Maryland House Bill HB1189

Maryland 2025 Regular Session

• Introduced: 2/6/25
• Refer: 2/6/25
• Report Pass: 4/3/25
• Report Pass: 4/4/25

Caption

Baltimore City - Property Tax - Authority to Impose on Vacant and Abandoned Property Owned by Nonprofit Organizations

Impact

The bill is significant as it aims to change the treatment of properties owned by nonprofits within the city. By allowing the imposition of property taxes on vacant or abandoned nonprofit properties, the bill intends to encourage better utilization of such properties. If implemented, HB 1189 could lead to increased revenue for the city while also compelling nonprofit organizations to either repurpose their properties or face financial obligations that they previously avoided.

Summary

House Bill 1189 pertains to the authority of the Mayor and City Council of Baltimore City to establish a subclass of real property composed of properties owned by nonprofit organizations that have not been utilized for their intended purpose for at least three consecutive taxable years. This bill allows Baltimore to set a special property tax rate for these types of properties, which would otherwise be exempt under previous legislation, thereby addressing concerns about vacant and abandoned properties owned by nonprofits.

Sentiment

The sentiment surrounding this bill has shown mixed reactions. Supporters argue that it will benefit the community by ensuring that vacant properties are either put to use or generate tax revenue for the city. However, critics emphasize that it may place an undue burden on nonprofit organizations, potentially diverting resources away from their primary missions. The debate reflects broader discussions about the role of nonprofit organizations in urban development and community services.

Contention

One notable point of contention is regarding the fairness of imposing property taxes on nonprofits. Detractors argue that many nonprofit organizations already operate on tight budgets and rely heavily on donations to fulfill their missions. They fear that the additional tax burden could lead to closures or reductions in services. Furthermore, the specification that a property must remain unused for three consecutive years also raises questions about how this condition will be enforced and what implications it has for the commitment to community service at a time when many nonprofit organizations are struggling.