| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | ||
| 2 | 2 | ||
| 3 | 3 | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. | |
| 4 | 4 | [Brackets] indicate matter deleted from existing law. | |
| 5 | - | Underlining indicates amendments to bill. | |
| 6 | - | Strike out indicates matter stricken from the bill by amendment or deleted from the law by | |
| 7 | - | amendment. | |
| 8 | 5 | *hb1189* | |
| 9 | 6 | ||
| 10 | 7 | HOUSE BILL 1189 | |
| 11 | 8 | Q2 5lr3380 | |
| 12 | 9 | CF SB 550 | |
| 13 | 10 | By: Delegates Young, Addison, Amprey, Conaway, Edelson, R. Lewis, and Smith | |
| 14 | 11 | Introduced and read first time: February 6, 2025 | |
| 15 | 12 | Assigned to: Ways and Means | |
| 16 | - | Committee Report: Favorable with amendments | |
| 17 | - | House action: Adopted | |
| 18 | - | Read second time: March 21, 2025 | |
| 19 | 13 | ||
| 20 | - | ||
| 14 | + | A BILL ENTITLED | |
| 21 | 15 | ||
| 22 | 16 | AN ACT concerning 1 | |
| 23 | 17 | ||
| 24 | 18 | Baltimore City – Property Tax – Authority to Establish a Subclass and Special 2 | |
| 25 | - | Rate for Property No Longer Used for Nonprofit Purposes Impose on Vacant 3 | |
| 26 | - | and Abandoned Property Owned by Nonprofit Organizations 4 | |
| 19 | + | Rate for Property No Longer Used for Nonprofit Purposes 3 | |
| 27 | 20 | ||
| 28 | - | FOR the purpose of authorizing the Mayor and City Council of Baltimore City to establish, 5 | |
| 29 | - | by law, a subclass of real property consisting of certain property that is owned by a 6 | |
| 30 | - | nonprofit organization but no longer used for the purpose for which the nonprofit 7 | |
| 31 | - | organization was established and to set a special property tax rate for that property; 8 | |
| 32 | - | and generally relating to a special property tax rate for property that is owned by a 9 | |
| 33 | - | nonprofit organization but no longer used for the purpose for which the nonprofit 10 | |
| 34 | - | organization was established impose, by law, the general property tax rate and a 11 | |
| 35 | - | certain special property tax rate on vacant and abandoned property owned by certain 12 | |
| 36 | - | nonprofit organizations that would otherwise be exempt from property tax under 13 | |
| 37 | - | certain provisions of law; and generally relating to the taxation of vacant and 14 | |
| 38 | - | abandoned property owned by nonprofit organizations in Baltimore City. 15 | |
| 21 | + | FOR the purpose of authorizing the Mayor and City Council of Baltimore City to establish, 4 | |
| 22 | + | by law, a subclass of real property consisting of certain property that is owned by a 5 | |
| 23 | + | nonprofit organization but no longer used for the purpose for which the nonprofit 6 | |
| 24 | + | organization was established and to set a special property tax rate for that property; 7 | |
| 25 | + | and generally relating to a special property tax rate for property that is owned by a 8 | |
| 26 | + | nonprofit organization but no longer used for the purpose for which the nonprofit 9 | |
| 27 | + | organization was established. 10 | |
| 39 | 28 | ||
| 40 | - | BY adding to 16 | |
| 29 | + | BY adding to 11 | |
| 30 | + | Article – Tax – Property 12 | |
| 31 | + | Section 6–202.2 13 | |
| 32 | + | Annotated Code of Maryland 14 | |
| 33 | + | (2019 Replacement Volume and 2024 Supplement) 15 | |
| 34 | + | ||
| 35 | + | BY repealing and reenacting, with amendments, 16 | |
| 41 | 36 | Article – Tax – Property 17 | |
| 42 | - | Section 6– | |
| 37 | + | Section 6–302 18 | |
| 43 | 38 | Annotated Code of Maryland 19 | |
| 44 | 39 | (2019 Replacement Volume and 2024 Supplement) 20 | |
| 45 | 40 | ||
| 46 | - | BY repealing and reenacting, with amendments, 21 | |
| 47 | - | Article – Tax – Property 22 | |
| 48 | - | Section 6–302, 7–202(b)(1), and 7–204 23 2 HOUSE BILL 1189 | |
| 41 | + | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21 | |
| 42 | + | That the Laws of Maryland read as follows: 22 | |
| 43 | + | ||
| 44 | + | Article – Tax – Property 23 | |
| 45 | + | ||
| 46 | + | 6–202.2. 24 | |
| 47 | + | 2 HOUSE BILL 1189 | |
| 49 | 48 | ||
| 50 | 49 | ||
| 51 | - | | |
| 52 | - | ||
| 50 | + | THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY ESTABLISH , BY 1 | |
| 51 | + | LAW, A SUBCLASS OF REAL PROPERTY CONSIS TING OF REAL PROPERT Y THAT: 2 | |
| 53 | 52 | ||
| 54 | - | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3 | |
| 55 | - | That the Laws of Maryland read as follows: 4 | |
| 53 | + | (1) IS OWNED BY A NONPRO FIT ORGANIZATION ; AND 3 | |
| 56 | 54 | ||
| 57 | - | Article – Tax – Property 5 | |
| 55 | + | (2) HAS NOT BEEN USED FO R AT LEAST 3 CONSECUTIVE TAXABLE 4 | |
| 56 | + | YEARS FOR THE PURPOS E FOR WHICH THE NONP ROFIT ORGANIZATION W AS 5 | |
| 57 | + | ESTABLISHED. 6 | |
| 58 | 58 | ||
| 59 | - | 6– | |
| 59 | + | 6–302. 7 | |
| 60 | 60 | ||
| 61 | - | THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY ESTABLISH , BY 7 | |
| 62 | - | LAW, A SUBCLASS OF REAL P ROPERTY CONSISTING O F REAL PROPERTY THAT : 8 | |
| 61 | + | (a) Except as otherwise provided in this section and after complying with § 6–305 8 | |
| 62 | + | of this subtitle, in each year after the date of finality and before the following July 1, the 9 | |
| 63 | + | Mayor and City Council of Baltimore City or the governing body of each county annually 10 | |
| 64 | + | shall set the tax rate for the next taxable year on all assessments of property subject to that 11 | |
| 65 | + | county’s property tax. 12 | |
| 63 | 66 | ||
| 64 | - | (1) IS OWNED BY A NONPRO FIT ORGANIZATION ; AND 9 | |
| 67 | + | (b) (1) Except as provided in [subsection] SUBSECTIONS (c) AND (D) of this 13 | |
| 68 | + | section and §§ 6–305 and 6–306 of this subtitle: 14 | |
| 65 | 69 | ||
| 66 | - | ( | |
| 67 | - | ||
| 68 | - | ||
| 70 | + | (i) there shall be a single county property tax rate for all real 15 | |
| 71 | + | property subject to county property tax except for operating real property described in § 16 | |
| 72 | + | 8–109(c) of this article; and 17 | |
| 69 | 73 | ||
| 70 | - | 6–302. 13 | |
| 74 | + | (ii) the county tax rate applicable to personal property and the 18 | |
| 75 | + | operating real property described in § 8–109(c) of this article shall be no more than 2.5 19 | |
| 76 | + | times the rate for real property. 20 | |
| 71 | 77 | ||
| 72 | - | (a) Except as otherwise provided in this section and after complying with § 6–305 14 | |
| 73 | - | of this subtitle, in each year after the date of finality and before the following July 1, the 15 | |
| 74 | - | Mayor and City Council of Baltimore City or the governing body of each county annually 16 | |
| 75 | - | shall set the tax rate for the next taxable year on all assessments of property subject to that 17 | |
| 76 | - | county’s property tax. 18 | |
| 78 | + | (2) Paragraph (1) of this subsection does not affect a special rate prevailing 21 | |
| 79 | + | in a taxing district or part of a county. 22 | |
| 77 | 80 | ||
| 78 | - | (b) (1) Except as provided in [subsection] SUBSECTIONS (c) AND (D) of this 19 | |
| 79 | - | section and §§ 6–305 and 6–306 of this subtitle: 20 | |
| 81 | + | (c) (1) The Mayor and City Council of Baltimore City or the governing body of 23 | |
| 82 | + | a county may set a special rate for a vacant lot or improved property cited as vacant and 24 | |
| 83 | + | unfit for habitation or other authorized use on a housing or building violation notice. 25 | |
| 80 | 84 | ||
| 81 | - | (i) there shall be a single county property tax rate for all real 21 | |
| 82 | - | property subject to county property tax except for operating real property described in § 22 | |
| 83 | - | 8–109(c) of this article; and 23 | |
| 85 | + | (2) On or before December 1 each year, the Mayor and City Council of 26 | |
| 86 | + | Baltimore City or the governing body of a county that enacts a special rate under paragraph 27 | |
| 87 | + | (1) of this subsection shall report to the Department of Housing and Community 28 | |
| 88 | + | Development and, in accordance with § 2–1257 of the State Government Article, to the 29 | |
| 89 | + | General Assembly on: 30 | |
| 84 | 90 | ||
| 85 | - | (ii) the county tax rate applicable to personal property and the 24 | |
| 86 | - | operating real property described in § 8–109(c) of this article shall be no more than 2.5 25 | |
| 87 | - | times the rate for real property. 26 | |
| 91 | + | (i) the special rate set under paragraph (1) of this subsection; 31 | |
| 88 | 92 | ||
| 89 | - | (2) Paragraph (1) of this subsection does not affect a special rate prevailing 27 | |
| 90 | - | in a taxing district or part of a county. 28 | |
| 93 | + | (ii) the number of properties to which the special rate applies; 32 | |
| 91 | 94 | ||
| 92 | - | (c) (1) The Mayor and City Council of Baltimore City or the governing body of 29 | |
| 93 | - | a county may set a special rate for a vacant lot or improved property cited as vacant and 30 | |
| 94 | - | unfit for habitation or other authorized use on a housing or building violation notice. 31 | |
| 95 | - | HOUSE BILL 1189 3 | |
| 95 | + | (iii) the revenue change resulting from the special rate; 33 HOUSE BILL 1189 3 | |
| 96 | 96 | ||
| 97 | 97 | ||
| 98 | - | (2) On or before December 1 each year, the Mayor and City Council of 1 | |
| 99 | - | Baltimore City or the governing body of a county that enacts a special rate under paragraph 2 | |
| 100 | - | (1) of this subsection shall report to the Department of Housing and Community 3 | |
| 101 | - | Development and, in accordance with § 2–1257 of the State Government Article, to the 4 | |
| 102 | - | General Assembly on: 5 | |
| 103 | 98 | ||
| 104 | - | ( | |
| 99 | + | (iv) the use of the revenue from the special rate; and 1 | |
| 105 | 100 | ||
| 106 | - | (ii) the number of properties to which the special rate applies; 7 | |
| 101 | + | (v) whether properties subject to the special rate are viable for 2 | |
| 102 | + | adaptive reuse, as defined in § 1–102 of the Housing and Community Development Article, 3 | |
| 103 | + | and plans to convert viable properties. 4 | |
| 107 | 104 | ||
| 108 | - | (iii) the revenue change resulting from the special rate; 8 | |
| 105 | + | (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE MAYOR 5 | |
| 106 | + | AND CITY COUNCIL OF BALTIMORE CITY MAY SET A SPECIA L RATE FOR REAL 6 | |
| 107 | + | PROPERTY THAT : 7 | |
| 109 | 108 | ||
| 110 | - | ( | |
| 109 | + | (I) IS OWNED BY A NONPRO FIT ORGANIZATION ; AND 8 | |
| 111 | 110 | ||
| 112 | - | ( | |
| 113 | - | ||
| 114 | - | ||
| 111 | + | (II) HAS NOT BEEN USED FO R AT LEAST 3 CONSECUTIVE 9 | |
| 112 | + | TAXABLE YEARS FOR TH E PURPOSE FOR WHICH THE NONPROFIT ORGANI ZATION 10 | |
| 113 | + | WAS ESTABLISHED . 11 | |
| 115 | 114 | ||
| 116 | - | ( | |
| 117 | - | ||
| 118 | - | ||
| 115 | + | (2) THE SPECIAL RATE AUTH ORIZED UNDER PARAGRA PH (1) OF THIS 12 | |
| 116 | + | SUBSECTION MAY NOT E XCEED 10 TIMES THE PROPERTY T AX RATE SET UNDER 13 | |
| 117 | + | SUBSECTION (B)(1)(I) OF THIS SECTION. 14 | |
| 119 | 118 | ||
| 120 | - | (I) IS OWNED BY A NONPRO FIT ORGANIZATION ; AND 16 | |
| 121 | - | ||
| 122 | - | (II) HAS NOT BEEN USED FO R AT LEAST 3 CONSECUTIVE 17 | |
| 123 | - | TAXABLE YEARS FOR TH E PURPOSE FOR WHICH THE NONPROFIT ORGANI ZATION 18 | |
| 124 | - | WAS ESTABLISHED . 19 | |
| 125 | - | ||
| 126 | - | (2) THE SPECIAL RATE AUTH ORIZED UNDER PARAGRA PH (1) OF THIS 20 | |
| 127 | - | SUBSECTION MAY NOT E XCEED 10 TIMES THE PROPERTY TAX RATE SET UNDER 21 | |
| 128 | - | SUBSECTION (B)(1)(I) OF THIS SECTION. 22 | |
| 129 | - | ||
| 130 | - | (D) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY, BY LAW, 23 | |
| 131 | - | IMPOSE ON REAL PROPE RTY THAT WOULD OTHER WISE BE EXEMPT FROM PROPERTY 24 | |
| 132 | - | TAX UNDER § 7–202 OR § 7–204 OF THIS ARTICLE THE GENERAL PROPERTY TAX RATE 25 | |
| 133 | - | SET UNDER SUBSECTION (B)(1)(I) OF THIS SECTION AND THE SPECIAL RATE 26 | |
| 134 | - | AUTHORIZED UNDER SUB SECTION (C)(1) OF THIS SECTION IF T HE REAL PROPERTY 27 | |
| 135 | - | IS: 28 | |
| 136 | - | ||
| 137 | - | (1) A VACANT LOT; OR 29 | |
| 138 | - | ||
| 139 | - | (2) IMPROVED PROPERTY CI TED AS VACANT AND UN FIT FOR 30 | |
| 140 | - | HABITATION OR OTHER AUTHORIZED USE ON A HOUSING OR BUILDING VIOLATION 31 | |
| 141 | - | NOTICE. 32 | |
| 142 | - | 4 HOUSE BILL 1189 | |
| 143 | - | ||
| 144 | - | ||
| 145 | - | 7–202. 1 | |
| 146 | - | ||
| 147 | - | (b) (1) Except as provided in subsection (c) of this section AND § 6–302(D) OF 2 | |
| 148 | - | THIS ARTICLE and subject to § 7–204.1 of this subtitle, property is not subject to property 3 | |
| 149 | - | tax if the property: 4 | |
| 150 | - | ||
| 151 | - | (i) is necessary for and actually used exclusively for a charitable or 5 | |
| 152 | - | educational purpose to promote the general welfare of the people of the State, including an 6 | |
| 153 | - | activity or an athletic program of an educational institution; and 7 | |
| 154 | - | ||
| 155 | - | (ii) is owned by: 8 | |
| 156 | - | ||
| 157 | - | 1. a nonprofit hospital; 9 | |
| 158 | - | ||
| 159 | - | 2. a nonprofit charitable, fraternal, educational, or literary 10 | |
| 160 | - | organization including: 11 | |
| 161 | - | ||
| 162 | - | A. a public library that is authorized under Title 23 of the 12 | |
| 163 | - | Education Article; and 13 | |
| 164 | - | ||
| 165 | - | B. a men’s or women’s club that is a nonpolitical and nonstock 14 | |
| 166 | - | club; 15 | |
| 167 | - | ||
| 168 | - | 3. a corporation, limited liability company, or trustee that 16 | |
| 169 | - | holds the property for the sole benefit of an organization that qualifies for an exemption 17 | |
| 170 | - | under this section; or 18 | |
| 171 | - | ||
| 172 | - | 4. a nonprofit housing corporation. 19 | |
| 173 | - | ||
| 174 | - | 7–204. 20 | |
| 175 | - | ||
| 176 | - | [Subject] EXCEPT AS PROVIDED IN § 6–302(D) OF THIS ARTICLE AND SUBJECT 21 | |
| 177 | - | to § 7–204.1 of this subtitle, property that is owned by a religious group or organization is 22 | |
| 178 | - | not subject to property tax if the property is actually used exclusively for: 23 | |
| 179 | - | ||
| 180 | - | (1) public religious worship; 24 | |
| 181 | - | ||
| 182 | - | (2) a parsonage or convent; or 25 | |
| 183 | - | ||
| 184 | - | (3) educational purposes. 26 | |
| 185 | - | ||
| 186 | - | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 27 | |
| 187 | - | 1, 2025, and shall be applicable to all taxable years beginning after June 30, 2025. 28 | |
| 119 | + | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 15 | |
| 120 | + | 1, 2025, and shall be applicable to all taxable years beginning after June 30, 2025. 16 | |
| 188 | 121 |