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.
*hb1189*
HOUSE BILL 1189
Q2 5lr3380
CF SB 550
By: Delegates Young, Addison, Amprey, Conaway, Edelson, R. Lewis, and Smith
Introduced and read first time: February 6, 2025
Assigned to: Ways and Means
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 21, 2025
CHAPTER ______
AN ACT concerning 1
Baltimore City – Property Tax – Authority to Establish a Subclass and Special 2
Rate for Property No Longer Used for Nonprofit Purposes Impose on Vacant 3
and Abandoned Property Owned by Nonprofit Organizations 4
FOR the purpose of authorizing the Mayor and City Council of Baltimore City to establish, 5
by law, a subclass of real property consisting of certain property that is owned by a 6
nonprofit organization but no longer used for the purpose for which the nonprofit 7
organization was established and to set a special property tax rate for that property; 8
and generally relating to a special property tax rate for property that is owned by a 9
nonprofit organization but no longer used for the purpose for which the nonprofit 10
organization was established impose, by law, the general property tax rate and a 11
certain special property tax rate on vacant and abandoned property owned by certain 12
nonprofit organizations that would otherwise be exempt from property tax under 13
certain provisions of law; and generally relating to the taxation of vacant and 14
abandoned property owned by nonprofit organizations in Baltimore City. 15
BY adding to 16
Article – Tax – Property 17
Section 6–202.2 18
Annotated Code of Maryland 19
(2019 Replacement Volume and 2024 Supplement) 20
BY repealing and reenacting, with amendments, 21
Article – Tax – Property 22
Section 6–302, 7–202(b)(1), and 7–204 23 2 HOUSE BILL 1189
Annotated Code of Maryland 1
(2019 Replacement Volume and 2024 Supplement) 2
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
That the Laws of Maryland read as follows: 4
Article – Tax – Property 5
6–202.2. 6
THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY ESTABLISH , BY 7
LAW, A SUBCLASS OF REAL P ROPERTY CONSISTING O F REAL PROPERTY THAT : 8
(1) IS OWNED BY A NONPRO FIT ORGANIZATION ; AND 9
(2) HAS NOT BEEN USED FO R AT LEAST 3 CONSECUTIVE TAXABLE 10
YEARS FOR THE PURPOS E FOR WHICH THE NONP ROFIT ORGANIZATION WAS 11
ESTABLISHED. 12
6–302. 13
(a) Except as otherwise provided in this section and after complying with § 6–305 14
of this subtitle, in each year after the date of finality and before the following July 1, the 15
Mayor and City Council of Baltimore City or the governing body of each county annually 16
shall set the tax rate for the next taxable year on all assessments of property subject to that 17
county’s property tax. 18
(b) (1) Except as provided in [subsection] SUBSECTIONS (c) AND (D) of this 19
section and §§ 6–305 and 6–306 of this subtitle: 20
(i) there shall be a single county property tax rate for all real 21
property subject to county property tax except for operating real property described in § 22
8–109(c) of this article; and 23
(ii) the county tax rate applicable to personal property and the 24
operating real property described in § 8–109(c) of this article shall be no more than 2.5 25
times the rate for real property. 26
(2) Paragraph (1) of this subsection does not affect a special rate prevailing 27
in a taxing district or part of a county. 28
(c) (1) The Mayor and City Council of Baltimore City or the governing body of 29
a county may set a special rate for a vacant lot or improved property cited as vacant and 30
unfit for habitation or other authorized use on a housing or building violation notice. 31
HOUSE BILL 1189 3
(2) On or before December 1 each year, the Mayor and City Council of 1
Baltimore City or the governing body of a county that enacts a special rate under paragraph 2
(1) of this subsection shall report to the Department of Housing and Community 3
Development and, in accordance with § 2–1257 of the State Government Article, to the 4
General Assembly on: 5
(i) the special rate set under paragraph (1) of this subsection; 6
(ii) the number of properties to which the special rate applies; 7
(iii) the revenue change resulting from the special rate; 8
(iv) the use of the revenue from the special rate; and 9
(v) whether properties subject to the special rate are viable for 10
adaptive reuse, as defined in § 1–102 of the Housing and Community Development Article, 11
and plans to convert viable properties. 12
(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE MAYOR 13
AND CITY COUNCIL OF BALTIMORE CITY MAY SET A SPECIA L RATE FOR REAL 14
PROPERTY THAT : 15
(I) IS OWNED BY A NONPRO FIT ORGANIZATION ; AND 16
(II) HAS NOT BEEN USED FO R AT LEAST 3 CONSECUTIVE 17
TAXABLE YEARS FOR TH E PURPOSE FOR WHICH THE NONPROFIT ORGANI ZATION 18
WAS ESTABLISHED . 19
(2) THE SPECIAL RATE AUTH ORIZED UNDER PARAGRA PH (1) OF THIS 20
SUBSECTION MAY NOT E XCEED 10 TIMES THE PROPERTY TAX RATE SET UNDER 21
SUBSECTION (B)(1)(I) OF THIS SECTION. 22
(D) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY, BY LAW, 23
IMPOSE ON REAL PROPE RTY THAT WOULD OTHER WISE BE EXEMPT FROM PROPERTY 24
TAX UNDER § 7–202 OR § 7–204 OF THIS ARTICLE THE GENERAL PROPERTY TAX RATE 25
SET UNDER SUBSECTION (B)(1)(I) OF THIS SECTION AND THE SPECIAL RATE 26
AUTHORIZED UNDER SUB SECTION (C)(1) OF THIS SECTION IF T HE REAL PROPERTY 27
IS: 28
(1) A VACANT LOT; OR 29
(2) IMPROVED PROPERTY CI TED AS VACANT AND UN FIT FOR 30
HABITATION OR OTHER AUTHORIZED USE ON A HOUSING OR BUILDING VIOLATION 31
NOTICE. 32
4 HOUSE BILL 1189
7–202. 1
(b) (1) Except as provided in subsection (c) of this section AND § 6–302(D) OF 2
THIS ARTICLE and subject to § 7–204.1 of this subtitle, property is not subject to property 3
tax if the property: 4
(i) is necessary for and actually used exclusively for a charitable or 5
educational purpose to promote the general welfare of the people of the State, including an 6
activity or an athletic program of an educational institution; and 7
(ii) is owned by: 8
1. a nonprofit hospital; 9
2. a nonprofit charitable, fraternal, educational, or literary 10
organization including: 11
A. a public library that is authorized under Title 23 of the 12
Education Article; and 13
B. a men’s or women’s club that is a nonpolitical and nonstock 14
club; 15
3. a corporation, limited liability company, or trustee that 16
holds the property for the sole benefit of an organization that qualifies for an exemption 17
under this section; or 18
4. a nonprofit housing corporation. 19
7–204. 20
[Subject] EXCEPT AS PROVIDED IN § 6–302(D) OF THIS ARTICLE AND SUBJECT 21
to § 7–204.1 of this subtitle, property that is owned by a religious group or organization is 22
not subject to property tax if the property is actually used exclusively for: 23
(1) public religious worship; 24
(2) a parsonage or convent; or 25
(3) educational purposes. 26
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 27
1, 2025, and shall be applicable to all taxable years beginning after June 30, 2025. 28