Maryland 2025 Regular Session

Maryland House Bill HB1192 Compare Versions

Only one version of the bill is available at this time.

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	5	hb1192
6	6
7	7	HOUSE BILL 1192
8	8	Q3, Q4, Q1 5lr2441
9	9
10	10	By: Delegates R. Long, Buckel, Hornberger, and Pippy
11	11	Introduced and read first time: February 6, 2025
12	12	Assigned to: Ways and Means
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Income, Sales and Use, and Property Taxes – Rescission of Exempt Status for 2
19	19	Nonprofit Organizations for Supporting Terrorist Organizations 3
20	20
21	21	FOR the purpose of requiring, as practicable, the Comptroller and the Director of the State 4
22	22	Department of Assessments and Taxation to jointly determine on a regular basis 5
23	23	whether a certain nonprofit organization in the State has been found to be a certain 6
24	24	terrorist–supporting organization; requiring that the Comptroller and the Director 7
25	25	rescind a terrorist–supporting organization’s tax–exempt status with respect to 8
26	26	certain Maryland income tax, sales and use tax, and property tax exemptions; 9
27	27	establishing procedures for the rescission and reinstatement of a nonprofit 10
28	28	organization’s tax–exempt status under this Act; and generally relating to the 11
29	29	tax–exempt status of nonprofit organizations who support terrorist organizations. 12
30	30
31	31	BY adding to 13
32	32	Article – Tax – General 14
33	33	Section 2–120 15
34	34	Annotated Code of Maryland 16
35	35	(2022 Replacement Volume and 2024 Supplement) 17
36	36
37	37	BY adding to 18
38	38	Article – Tax – Property 19
39	39	Section 7–111 20
40	40	Annotated Code of Maryland 21
41	41	(2019 Replacement Volume and 2024 Supplement) 22
42	42
43	43	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
44	44	That the Laws of Maryland read as follows: 24
45	45
46	46	Article – Tax – General 25
47	47	2 HOUSE BILL 1192
48	48
49	49
50	50	2–120. 1
51	51
52	52	(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 2
53	53	INDICATED. 3
54	54
55	55	(2) “DIRECTOR” MEANS THE DIRECTOR OF THE STATE DEPARTMENT 4
56	56	OF ASSESSMENTS AND TAXATION. 5
57	57
58	58	(3) “MATERIAL SUPPORT OR RESOURCES ” HAS THE MEANING 6
59	59	STATED IN 18 U.S.C. 2339A. 7
60	60
61	61	(4) “NONPROFIT ORGANIZATIO N” MEANS A BUSINESS ENTITY THAT : 8
62	62
63	63	(I) IS EXEMPT FROM FEDERAL INCOME TAXES UNDER § 501 OF 9
64	64	THE INTERNAL REVENUE CODE; AND 10
65	65
66	66	(II) HAS BEEN GRANTED: 11
67	67
68	68	1. AN INCOME TAX EXEMPTION UNDER § 10–104 OF THIS 12
69	69	ARTICLE; 13
70	70
71	71	2. A SALES AND USE TAX EXEMPTION UNDER § 11–204 OF 14
72	72	THIS ARTICLE; OR 15
73	73
74	74	3. A PROPERTY TAX EXEMP TION UNDER § 7–202 OR § 16
75	75	7–204 OF THE TAX – PROPERTY ARTICLE. 17
76	76
77	77	(5) “TERRORIST–SUPPORTING ORGANIZATION ” MEANS A NONPROFIT 18
78	78	ORGANIZATION OR AN AGENT OF THE N ONPROFIT ORGANIZATIO N THAT HAS BEEN 19
79	79	FOUND BY A FEDERAL AGENCY TO BE IN VIOLATION O F 18 U.S.C. § 2339A OR § 20
80	80	2339B FOR PROVIDING MATERIAL S UPPORT OR RESOURCES TO AN ORGANIZATION 21
81	81	DESIGNATED AS A TERRORIST ORGANIZATI ON BY THE U.S. SECRETARY OF STATE 22
82	82	OR UNDER § 501(P) OF THE INTERNAL REVENUE CODE. 23
83	83
84	84	(B) THE COMPTROLLER AND DIRECTOR JOINTLY SHAL L, AS PRACTICABLE , 24
85	85	DETERMINE ON A REGULAR BASIS WHETHER A NY NONPROFIT ORGANIZATI ON IN THE 25
86	86	STATE HAS BEEN FOUND TO BE A TERRORIST–SUPPORTING ORGANIZAT ION. 26
87	87
88	88	(C) SUBJECT TO SUBSECTION S (D) THROUGH (F) OF THIS SECTION, IF THE 27
89	89	COMPTROLLER AND DIRECTOR DETERMINE TH AT A NONPROFIT ORGAN IZATION IN 28
90	90	THE STATE HAS BEEN FOUND TO BE A TERRORIST –SUPPORTING ORGANIZAT ION IN 29
91	91	ANY OF THE 3 IMMEDIATELY PRECEDIN G TAXABLE YEARS , THE COMPTROLLER 30
92	92	SHALL RESCIND THE NO NPROFIT ORGANIZATION ’S TAX–EXEMPT STATUS WITH 31 HOUSE BILL 1192 3
93	93
94	94
95	95	RESPECT TO THE INCOME TAX AND SALES AND USE TAX IMPOSED UNDER THIS 1
96	96	ARTICLE. 2
97	97
98	98	(D) (1) BEFORE RESCINDING A N ONPROFIT ORGANIZATIO N’S 3
99	99	TAX–EXEMPT STATUS UNDER THIS SECTION , THE COMPTROLLER SHALL SEN D 4
100	100	NOTICE OF THE RESCISSION BY REGISTERED MAIL TO: 5
101	101
102	102	(I) THE NONPROFIT ORGANI ZATION’S ADDRESS OF 6
103	103	REGISTRATION IN THE STATE; AND 7
104	104
105	105	(II) IF APPLICABLE, THE ADDRESS ON THE MOST RECENTLY 8
106	106	FILED INCOME TAX RET URN FOR THE NONPROFI T ORGANIZATION . 9
107	107
108	108	(2) THE NOTICE REQUIRED U NDER THIS SECTION SH ALL INCLUDE 10
109	109	ANY INFORMATIO N ON WHICH THE COMPTROLLER RELIED WHEN DECIDING TO 11
110	110	RESCIND THE NONPROFI T ORGANIZATION ’S TAX–EXEMPT STATUS . 12
111	111
112	112	(E) (1) A NONPROFIT ORGANIZATI ON THAT RECEIVES A N OTICE OF 13
113	113	RESCISSION UNDER SUBSECTION (D) OF THIS SECTION SHAL L HAVE 90 CALENDAR 14
114	114	DAYS FROM THE DATE THE LAST NOTICE IS MAILED TO PROVIDE ANY INFOR MATION 15
115	115	AS MAY BE REQUIRED BY THE COMPTROLLER TO PREVENT THE RESCISSION . 16
116	116
117	117	(2) THE COMPTROLLER MAY WITHDRAW THE DECISIO N TO RESCIND 17
118	118	BASED ON THE INFORMA TION PROVIDED BY THE NONPROFIT ORGANIZATI ON UNDER 18
119	119	PARAGRAPH (1) OF THIS SUBSECTION . 19
120	120
121	121	(F) (1) AFTER THE 90 DAYS UNDER SUBSECTION (E)(1) OF THIS SECTION 20
122	122	LAPSE, THE RESCISSION SHALL BECOME EFFECTIVE UNLESS THE COMPTROLLER 21
123	123	WITHDRAWS THE DECISION TO RESCIND IN ACCORDANCE WITH SUBSECTION (E)(2) 22
124	124	OF THIS SECTION. 23
125	125
126	126	(2) THE COMPTROLLER SHALL PROMPTLY NOTIFY THE DIRECTOR 24
127	127	WHEN ANY RESCISSION AUTHORIZED UNDER THI S SECTION BECOMES EF FECTIVE. 25
128	128
129	129	(3) THE COMPTROLLER MAY REINS TATE A NONPROFIT 26
130	130	ORGANIZATION ’S TAX–EXEMPT STATUS THAT H AS BEEN RESCINDED UN DER THIS 27
131	131	SECTION ONLY IF: 28
132	132
133	133	(I) THE COMPTROLLER DETERMINE S THE RESCISSION WAS 29
134	134	ERRONEOUS ; 30
135	135	4 HOUSE BILL 1192
136	136
137	137
138	138	(II) THE COMPTROLLER RECEIVES ATTESTATION FROM THE 1
139	139	NONPROFIT ORGANIZATI ON UNDER PENALTY OF PER JURY THAT IT DID NOT 2
140	140	RECEIVE THE NOTICE REQUIRED UNDER SUBSECTION (D) OF THIS SECTION; OR 3
141	141
142	142	(III) BASED ON ANY OTHER NEWLY AVAILABLE INFORMATIO N 4
143	143	AND IN ACCORDANCE WI TH PROCEDURES ADOPTE D BY THE COMPTROLLER , THE 5
144	144	COMPTROLLER DETERMINE S THE TAX–EXEMPT STATUS SHOULD BE REINSTATED . 6
145	145
146	146	(G) A NONPROFIT ORGANIZATI ON THAT HAS ITS TAX –EXEMPT STATUS 7
147	147	RESCINDED UNDER THIS SECTION M AY APPEAL THE RESCIS SION TO THE MARYLAND 8
148	148	TAX COURT. 9
149	149
150	150	(H) THE COMPTROLLER AND DIRECTOR SHALL JOINTL Y ADOPT 10
151	151	REGULATIONS TO CARRY OUT THIS SECTION. 11
152	152
153	153	Article – Tax – Property 12
154	154
155	155	7–111. 13
156	156
157	157	(A) IN THIS SECTION , “NONPROFIT ORGANIZATIO N” HAS THE MEANING 14
158	158	STATED IN § 2–120 OF THE TAX – GENERAL ARTICLE. 15
159	159
160	160	(B) IF THE DIRECTOR RECEIVES NOT ICE THAT THE COMPTROLLER HAS 16
161	161	RESCINDED A NONPROFIT ORGANIZA TION’S TAX–EXEMPT STATUS IN ACC ORDANCE 17
162	162	WITH § 2–120 OF THE TAX – GENERAL ARTICLE, THE DIRECTOR SHALL RESCIN D 18
163	163	THE NONPROFIT ORGANI ZATION’S TAX–EXEMPT STATUS WITH RESPECT TO ANY 19
164	164	PROPERTY TAX EXEMPTI ON UNDER § 7–202 OR 7–204 OF THIS TITLE. 20
165	165
166	166	(C) THE DIRECTOR SHALL FOLLOW THE PROCEDURES SPECIFIED UNDER § 21
167	167	2–120 OF THE TAX – GENERAL ARTICLE FOR IMPOSING AND WITHDRA WING A 22
168	168	RESCISSION AND REINSTATING A NONPROFIT ORGANIZA TION’S TAX–EXEMPT 23
169	169	STATUS UNDER THIS SE CTION. 24
170	170
171	171	(D) A NONPROFIT ORGANIZATI ON THAT HAS ITS TAX–EXEMPT STATUS 25
172	172	RESCINDED UNDER THIS SECTION MAY APPEAL T HE RESCISSION TO THE MARYLAND 26
173	173	TAX COURT. 27
174	174
175	175	(E) THE DIRECTOR AND THE COMPTROLLER SHALL JOI NTLY ADOPT 28
176	176	REGULATIONS TO CARRY OUT THIS SECTION . 29
177	177
178	178	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 30
179	179	1, 2025. 31
180	180