| 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 | *hb0023* | |
| 9 | 6 | ||
| 10 | 7 | HOUSE BILL 23 | |
| 11 | 8 | Q1 5lr1615 | |
| 12 | 9 | (PRE–FILED) | |
| 13 | 10 | By: Delegates Fair, Charkoudian, Palakovich Carr, Pruski, Ruth, and Vogel | |
| 14 | 11 | Requested: November 1, 2024 | |
| 15 | 12 | Introduced and read first time: January 8, 2025 | |
| 16 | 13 | Assigned to: Ways and Means | |
| 17 | - | Committee Report: Favorable with amendments | |
| 18 | - | House action: Adopted | |
| 19 | - | Read second time: March 1, 2025 | |
| 20 | 14 | ||
| 21 | - | ||
| 15 | + | A BILL ENTITLED | |
| 22 | 16 | ||
| 23 | 17 | AN ACT concerning 1 | |
| 24 | 18 | ||
| 25 | 19 | Property Taxes – Authority of Counties to Establish a Subclass and Set a 2 | |
| 26 | 20 | Special Rate for Commercial and Industrial Property 3 | |
| 27 | 21 | ||
| 28 | 22 | FOR the purpose of authorizing the Mayor and City Council of Baltimore City or the 4 | |
| 29 | 23 | governing body of a county to establish, by law, a subclass of real property consisting 5 | |
| 30 | 24 | of certain commercial and industrial property and to set a special property tax rate 6 | |
| 31 | 25 | for certain commercial and industrial property for the purpose of financing certain 7 | |
| 32 | 26 | transportation improvements or the approved budget of the county board of 8 | |
| 33 | 27 | education; requiring that the special rate shall be in addition to a certain general tax 9 | |
| 34 | 28 | rate, may not exceed a certain amount, and may not apply to the residential portion 10 | |
| 35 | 29 | of a mixed–use building that receives a certain exemption or credit; requiring the 11 | |
| 36 | 30 | Mayor and City Council of Baltimore City or the governing body of a county to grant 12 | |
| 37 | 31 | either a property tax exemption or a property tax credit against a special rate on 13 | |
| 38 | 32 | commercial and industrial property for the residential portion of a mixed–use 14 | |
| 39 | 33 | building; requiring the exemption or credit to be granted automatically under certain 15 | |
| 40 | 34 | circumstances; requiring a county to provide notice of the exemption or credit and 16 | |
| 41 | 35 | accept applications for the exemption or credit; authorizing the Mayor and City 17 | |
| 42 | 36 | Council of Baltimore City or the governing body of a county to grant a property tax 18 | |
| 43 | 37 | credit against a special rate on commercial and industrial property imposed on real 19 | |
| 44 | 38 | property owned or leased by certain businesses with fewer than a certain number of 20 | |
| 45 | 39 | employees; and generally relating to a special property tax rate for commercial and 21 | |
| 46 | 40 | industrial property. 22 | |
| 47 | 41 | ||
| 48 | - | BY repealing and reenacting, with amendments, 23 2 HOUSE BILL 23 | |
| 42 | + | BY repealing and reenacting, with amendments, 23 | |
| 43 | + | Article – Tax – Property 24 | |
| 44 | + | Section 6–202.1 and 6–302 25 | |
| 45 | + | Annotated Code of Maryland 26 | |
| 46 | + | (2019 Replacement Volume and 2024 Supplement) 27 | |
| 47 | + | ||
| 48 | + | BY adding to 28 2 HOUSE BILL 23 | |
| 49 | 49 | ||
| 50 | 50 | ||
| 51 | 51 | Article – Tax – Property 1 | |
| 52 | - | Section | |
| 52 | + | Section 7–402, 9–112, and 9–275 2 | |
| 53 | 53 | Annotated Code of Maryland 3 | |
| 54 | 54 | (2019 Replacement Volume and 2024 Supplement) 4 | |
| 55 | 55 | ||
| 56 | - | BY adding to 5 | |
| 57 | - | Article – Tax – Property 6 | |
| 58 | - | Section 7–402, 9–112, and 9–275 7 | |
| 59 | - | Annotated Code of Maryland 8 | |
| 60 | - | (2019 Replacement Volume and 2024 Supplement) 9 | |
| 56 | + | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5 | |
| 57 | + | That the Laws of Maryland read as follows: 6 | |
| 61 | 58 | ||
| 62 | - | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10 | |
| 63 | - | That the Laws of Maryland read as follows: 11 | |
| 59 | + | Article – Tax – Property 7 | |
| 64 | 60 | ||
| 65 | - | ||
| 61 | + | 6–202.1. 8 | |
| 66 | 62 | ||
| 67 | - | 6–202.1. 13 | |
| 63 | + | The Mayor and City Council of Baltimore City or the governing body of a county may 9 | |
| 64 | + | establish, by law, a subclass of real property consisting of: 10 | |
| 68 | 65 | ||
| 69 | - | | |
| 70 | - | ||
| 66 | + | (1) vacant lots [or] AND improved REAL property cited as vacant and unfit 11 | |
| 67 | + | for habitation or other authorized use on a housing or building violation notice; OR 12 | |
| 71 | 68 | ||
| 72 | - | ( | |
| 73 | - | ||
| 69 | + | (2) ALL REAL PROPERTY THAT IS ASS IGNED THE FOLLOWING LAND 13 | |
| 70 | + | USE CODES, AS DEFINED BY THE MARYLAND ASSESSMENT PROCEDURE MANUAL: 14 | |
| 74 | 71 | ||
| 75 | - | (2) ALL REAL PROPERTY TH AT IS ASSIGNED THE F OLLOWING LAND 18 | |
| 76 | - | USE CODES, AS DEFINED BY THE MARYLAND ASSESSMENT PROCEDURE MANUAL: 19 | |
| 72 | + | (I) COMMERCIAL ; 15 | |
| 77 | 73 | ||
| 78 | - | ( | |
| 74 | + | (II) INDUSTRIAL; 16 | |
| 79 | 75 | ||
| 80 | - | ( | |
| 76 | + | (III) COMMERCIAL /INDUSTRIAL CONDOMINI UM; 17 | |
| 81 | 77 | ||
| 82 | - | ( | |
| 78 | + | (IV) RESIDENTIAL/COMMERCIAL ; AND 18 | |
| 83 | 79 | ||
| 84 | - | ( | |
| 80 | + | (V) COMMERCIAL /RESIDENTIAL. 19 | |
| 85 | 81 | ||
| 86 | - | ||
| 82 | + | 6–302. 20 | |
| 87 | 83 | ||
| 88 | - | 6–302. 25 | |
| 84 | + | (a) Except as otherwise provided in this section and after complying with § 6–305 21 | |
| 85 | + | of this subtitle, in each year after the date of finality and before the following July 1, the 22 | |
| 86 | + | Mayor and City Council of Baltimore City or the governing body of each county annually 23 | |
| 87 | + | shall set the tax rate for the next taxable year on all assessments of property subject to that 24 | |
| 88 | + | county’s property tax. 25 | |
| 89 | 89 | ||
| 90 | - | ( | |
| 91 | - | of this subtitle | |
| 92 | - | ||
| 93 | - | shall | |
| 94 | - | county | |
| 95 | - | HOUSE BILL 23 3 | |
| 90 | + | (b) (1) Except as provided in subsection (c) of this section and §§ 6–305 and 26 | |
| 91 | + | 6–306 of this subtitle: 27 | |
| 92 | + | ||
| 93 | + | (i) there shall be a single county property tax rate for all real 28 | |
| 94 | + | property subject to county property tax except for operating real property described in § 29 | |
| 95 | + | 8–109(c) of this article; and 30 HOUSE BILL 23 3 | |
| 96 | 96 | ||
| 97 | 97 | ||
| 98 | - | (b) (1) Except as provided in subsection (c) of this section and §§ 6–305 and 1 | |
| 99 | - | 6–306 of this subtitle: 2 | |
| 100 | 98 | ||
| 101 | - | ( | |
| 102 | - | ||
| 103 | - | ||
| 99 | + | (ii) the county tax rate applicable to personal property and the 1 | |
| 100 | + | operating real property described in § 8–109(c) of this article shall be no more than 2.5 2 | |
| 101 | + | times the rate for real property. 3 | |
| 104 | 102 | ||
| 105 | - | (ii) the county tax rate applicable to personal property and the 6 | |
| 106 | - | operating real property described in § 8–109(c) of this article shall be no more than 2.5 7 | |
| 107 | - | times the rate for real property. 8 | |
| 103 | + | (2) Paragraph (1) of this subsection does not affect a special rate prevailing 4 | |
| 104 | + | in a taxing district or part of a county. 5 | |
| 108 | 105 | ||
| 109 | - | (2) Paragraph (1) of this subsection does not affect a special rate prevailing 9 | |
| 110 | - | in a taxing district or part of a county. 10 | |
| 106 | + | (c) (1) (I) The Mayor and City Council of Baltimore City or the governing 6 | |
| 107 | + | body of a county may set a special rate for a vacant lot [or] AND improved REAL property 7 | |
| 108 | + | cited as vacant and unfit for habitation or other authorized use on a housing or building 8 | |
| 109 | + | violation notice. 9 | |
| 111 | 110 | ||
| 112 | - | (c) (1) (I) The Mayor and City Council of Baltimore City or the governing 11 | |
| 113 | - | body of a county may set a special rate for a vacant lot [or] AND improved REAL property 12 | |
| 114 | - | cited as vacant and unfit for habitation or other authorized use on a housing or building 13 | |
| 115 | - | violation notice. 14 | |
| 111 | + | [(2)] (II) On or before December 1 each year, the Mayor and City Council 10 | |
| 112 | + | of Baltimore City or the governing body of a county that enacts a special rate under 11 | |
| 113 | + | [paragraph (1)] SUBPARAGRAPH (I) of this [subsection] PARAGRAPH shall report to the 12 | |
| 114 | + | Department of Housing and Community Development and, in accordance with § 2–1257 of 13 | |
| 115 | + | the State Government Article, to the General Assembly on: 14 | |
| 116 | 116 | ||
| 117 | - | [(2)] (II) On or before December 1 each year, the Mayor and City Council 15 | |
| 118 | - | of Baltimore City or the governing body of a county that enacts a special rate under 16 | |
| 119 | - | [paragraph (1)] SUBPARAGRAPH (I) of this [subsection] PARAGRAPH shall report to the 17 | |
| 120 | - | Department of Housing and Community Development and, in accordance with § 2–1257 of 18 | |
| 121 | - | the State Government Article, to the General Assembly on: 19 | |
| 117 | + | [(i)] 1. the special rate set under [paragraph (1)] 15 | |
| 118 | + | SUBPARAGRAPH (I) of this [subsection] PARAGRAPH ; 16 | |
| 122 | 119 | ||
| 123 | - | [(i)] 1. the special rate set under [paragraph (1)] 20 | |
| 124 | - | SUBPARAGRAPH (I) of this [subsection] PARAGRAPH ; 21 | |
| 120 | + | [(ii)] 2. the number of properties to which the special rate applies; 17 | |
| 125 | 121 | ||
| 126 | - | [( | |
| 122 | + | [(iii)] 3. the revenue change resulting from the special rate; 18 | |
| 127 | 123 | ||
| 128 | - | [( | |
| 124 | + | [(iv)] 4. the use of the revenue from the special rate; and 19 | |
| 129 | 125 | ||
| 130 | - | [(iv)] 4. the use of the revenue from the special rate; and 24 | |
| 126 | + | [(v)] 5. whether properties subject to the special rate are viable 20 | |
| 127 | + | for adaptive reuse, as defined in § 1–102 of the Housing and Community Development 21 | |
| 128 | + | Article, and plans to convert viable properties. 22 | |
| 131 | 129 | ||
| 132 | - | [(v)] 5. whether properties subject to the special rate are viable 25 | |
| 133 | - | for adaptive reuse, as defined in § 1–102 of the Housing and Community Development 26 | |
| 134 | - | Article, and plans to convert viable properties. 27 | |
| 130 | + | (2) (I) SUBJECT TO THE REQUIR EMENTS OF THIS PARAG RAPH, 23 | |
| 131 | + | THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING BODY OF 24 | |
| 132 | + | A COUNTY MAY SET A S INGLE SPECIAL RATE F OR ALL REAL PROPERTY THAT IS 25 | |
| 133 | + | ASSIGNED THE FOLLOWI NG LAND USE CODES , AS DEFINED BY THE MARYLAND 26 | |
| 134 | + | ASSESSMENT PROCEDURE MANUAL: 27 | |
| 135 | 135 | ||
| 136 | - | (2) (I) SUBJECT TO THE REQUIR EMENTS OF THIS PARAG RAPH, 28 | |
| 137 | - | THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING BODY OF 29 | |
| 138 | - | A COUNTY MAY SET A S INGLE SPECIAL RATE F OR ALL REAL PROPERTY THAT IS 30 | |
| 139 | - | ASSIGNED THE FOLLOWI NG LAND USE CODES , AS DEFINED BY THE MARYLAND 31 | |
| 140 | - | ASSESSMENT PROCEDURE MANUAL: 32 | |
| 136 | + | 1. COMMERCIAL ; 28 | |
| 141 | 137 | ||
| 142 | - | 1. COMMERCIAL ; 33 | |
| 143 | - | 4 HOUSE BILL 23 | |
| 138 | + | 2. INDUSTRIAL; 29 | |
| 139 | + | ||
| 140 | + | 3. COMMERCIAL /INDUSTRIAL CONDOMINI UM; 30 | |
| 141 | + | ||
| 142 | + | 4. RESIDENTIAL/COMMERCIAL ; AND 31 4 HOUSE BILL 23 | |
| 144 | 143 | ||
| 145 | 144 | ||
| 146 | - | 2. INDUSTRIAL; 1 | |
| 147 | 145 | ||
| 148 | - | | |
| 146 | + | 5. COMMERCIAL /RESIDENTIAL. 1 | |
| 149 | 147 | ||
| 150 | - | 4. RESIDENTIAL/COMMERCIAL ; AND 3 | |
| 148 | + | (II) A SPECIAL RATE SET UND ER SUBPARAGRAPH (I) OF THIS 2 | |
| 149 | + | PARAGRAPH MAY BE IMP OSED ONLY: 3 | |
| 151 | 150 | ||
| 152 | - | 5. COMMERCIAL /RESIDENTIAL. 4 | |
| 151 | + | 1. WITHIN A SPECIAL TAX ING DISTRICT ESTABLISHED 4 | |
| 152 | + | FOR THE PURPOSE OF F INANCING THE COST OF STATE OR COUNTY 5 | |
| 153 | + | TRANSPORTATION IMPRO VEMENTS UNDER TITLE 21, SUBTITLE 7 OF THE LOCAL 6 | |
| 154 | + | GOVERNMENT ARTICLE; OR 7 | |
| 153 | 155 | ||
| 154 | - | | |
| 155 | - | ||
| 156 | + | 2. ON A COUNTYWIDE BASI S FOR THE PURPOSE OF 8 | |
| 157 | + | FUNDING THE APPROVED BUDGET OF THE COUNTY BOARD OF EDUCATION . 9 | |
| 156 | 158 | ||
| 157 | - | 1. WITHIN A SPECIAL TAX ING DISTRICT ESTABLI SHED 7 | |
| 158 | - | FOR THE PURPOSE OF F INANCING THE COST OF STATE OR COUNTY 8 | |
| 159 | - | TRANSPORTATION IMPRO VEMENTS UNDER TITLE 21, SUBTITLE 7 OF THE LOCAL 9 | |
| 160 | - | GOVERNMENT ARTICLE; OR 10 | |
| 159 | + | (III) A SPECIAL RATE SET UND ER SUBPARAGRAPH (I) OF THIS 10 | |
| 160 | + | PARAGRAPH : 11 | |
| 161 | 161 | ||
| 162 | - | | |
| 163 | - | ||
| 162 | + | 1. SHALL BE IN ADDITION TO THE GENERAL REAL 12 | |
| 163 | + | PROPERTY TAX RATE SE T UNDER SUBSECTION (B)(1) OF THIS SECTION; 13 | |
| 164 | 164 | ||
| 165 | - | | |
| 166 | - | ||
| 165 | + | 2. MAY NOT EXCEED 12.5 CENTS FOR EACH $100 OF 14 | |
| 166 | + | ASSESSED VALUE ; AND 15 | |
| 167 | 167 | ||
| 168 | - | 1. SHALL BE IN ADDITION TO THE GENERAL RE AL 15 | |
| 169 | - | PROPERTY TAX RATE SE T UNDER SUBSECTION (B)(1) OF THIS SECTION; 16 | |
| 168 | + | 3. MAY NOT APPLY TO THE RESIDENTIAL PORTION OF A 16 | |
| 169 | + | MIXED–USE PROPERTY THAT RE CEIVES EITHER AN EXEMPTION FROM THE SPECIAL 17 | |
| 170 | + | RATE UNDER § 7–402 OF THIS ARTICLE OR A CREDIT AGAINST THE SPECIAL RATE 18 | |
| 171 | + | UNDER § 9–112 OF THIS ARTICLE. 19 | |
| 170 | 172 | ||
| 171 | - | | |
| 172 | - | ||
| 173 | - | ||
| 173 | + | (3) IF A COUNTY SETS A SP ECIAL PROPERTY TAX R ATE UNDER 20 | |
| 174 | + | PARAGRAPH (1) OR (2) OF THIS SUBSECTION , IT SHALL PROMPTLY SE ND A NOTICE 21 | |
| 175 | + | TO THE DEPARTMENT THAT INCLU DES: 22 | |
| 174 | 176 | ||
| 175 | - | 3. MAY NOT APPLY TO THE RESIDENTIAL PORT ION OF A 20 | |
| 176 | - | MIXED–USE PROPERTY THAT RE CEIVES EITHER AN EXE MPTION FROM THE SPEC IAL 21 | |
| 177 | - | RATE UNDER § 7–402 OF THIS ARTICLE OR A CREDIT AGAINST THE S PECIAL RATE 22 | |
| 178 | - | UNDER § 9–112 OF THIS ARTICLE. 23 | |
| 177 | + | (I) THE AMOUNT OF THE RATE; AND 23 | |
| 179 | 178 | ||
| 180 | - | (3) IF A COUNTY SETS A SP ECIAL PROPERTY TAX R ATE UNDER 24 | |
| 181 | - | PARAGRAPH (1) OR (2) OF THIS SUBSECTION , IT SHALL PROMPTLY SE ND A NOTICE 25 | |
| 182 | - | TO THE DEPARTMENT THAT INCLU DES: 26 | |
| 179 | + | (II) THE CLASS OF PROPERT Y TO WHICH THE RATE APPLIES. 24 | |
| 183 | 180 | ||
| 184 | - | ||
| 181 | + | 7–402. 25 | |
| 185 | 182 | ||
| 186 | - | (II) THE CLASS OF PROPERT Y TO WHICH THE RATE APPLIES. 28 | |
| 183 | + | (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 26 | |
| 184 | + | INDICATED. 27 | |
| 187 | 185 | ||
| 188 | - | ||
| 189 | - | HOUSE BILL 23 5 | |
| 186 | + | (2) “MIXED–USE PROPERTY ” MEANS A PROPERTY THA T INCLUDES 28 | |
| 187 | + | BOTH: 29 HOUSE BILL 23 5 | |
| 190 | 188 | ||
| 191 | 189 | ||
| 192 | - | (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1 | |
| 193 | - | INDICATED. 2 | |
| 194 | 190 | ||
| 195 | - | (2) “MIXED–USE PROPERTY ” MEANS A PROPERTY THA T INCLUDES 3 | |
| 196 | - | BOTH: 4 | |
| 191 | + | (I) A COMMERCIAL OR INDU STRIAL USE; AND 1 | |
| 197 | 192 | ||
| 198 | - | ( | |
| 193 | + | (II) A RESIDENTIAL USE . 2 | |
| 199 | 194 | ||
| 200 | - | ( | |
| 195 | + | (3) “PUBLICLY AVAILABLE RE CORDS” INCLUDES: 3 | |
| 201 | 196 | ||
| 202 | - | ( | |
| 197 | + | (I) VALUATION RECORDS OF THE DEPARTMENT ; 4 | |
| 203 | 198 | ||
| 204 | - | (I) VALUATION RECORDS OF THE DEPARTMENT ; 8 | |
| 199 | + | (II) COUNTY RECORDS , INCLUDING LICENSE OR PERMIT 5 | |
| 200 | + | RECORDS; AND 6 | |
| 205 | 201 | ||
| 206 | - | (II) COUNTY RECORDS , INCLUDING LICENSE OR PERMIT 9 | |
| 207 | - | RECORDS; AND 10 | |
| 202 | + | (III) ANY OTHER RECORD FRO M A GOVERNMENTAL OR PRIVATE 7 | |
| 203 | + | SOURCE THAT IS ACCES SIBLE TO A COUNTY AN D PROVIDES RELIABLE INFORMATION 8 | |
| 204 | + | ON THE USE OF PROPER TY. 9 | |
| 208 | 205 | ||
| 209 | - | (III) ANY OTHER RECORD FRO M A GOVERNMENTAL OR PRIVATE 11 | |
| 210 | - | SOURCE THAT IS ACCES SIBLE TO A COUNTY AN D PROVIDES RELIABLE INFORMATION 12 | |
| 211 | - | ON THE USE OF PRO PERTY. 13 | |
| 206 | + | (B) IF THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 10 | |
| 207 | + | GOVERNING BODY OF A COUNTY SETS A SPECIA L RATE UNDER § 6–302(C)(2) OF THIS 11 | |
| 208 | + | ARTICLE, THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING 12 | |
| 209 | + | BODY OF THE COUNTY S HALL, BY LAW, GRANT EITHER : 13 | |
| 212 | 210 | ||
| 213 | - | (B) IF THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 14 | |
| 214 | - | GOVERNING BODY OF A COUNTY SETS A SPECIA L RATE UNDER § 6–302(C)(2) OF THIS 15 | |
| 215 | - | ARTICLE, THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING 16 | |
| 216 | - | BODY OF THE COUNTY S HALL, BY LAW, GRANT EITHER: 17 | |
| 211 | + | (1) A CREDIT AGAINST THE SPECIAL RATE FOR THE ENTIRE 14 | |
| 212 | + | RESIDENTIAL PORTION OF A MIXED–USE PROPERTY IN ACCO RDANCE WITH § 9–112 15 | |
| 213 | + | OF THIS ARTICLE; OR 16 | |
| 217 | 214 | ||
| 218 | - | ( | |
| 219 | - | RESIDENTIAL PORTION OF A MIXED–USE PROPERTY IN ACCO RDANCE WITH | |
| 220 | - | ||
| 215 | + | (2) AN EXEMPTION FROM THE SPECIAL RATE FOR THE ENTIRE 17 | |
| 216 | + | RESIDENTIAL PORTION OF A MIXED–USE PROPERTY IN ACCO RDANCE WITH THIS 18 | |
| 217 | + | SECTION. 19 | |
| 221 | 218 | ||
| 222 | - | (2) AN EXEMPTION FROM TH E SPECIAL RATE FOR T HE ENTIRE 21 | |
| 223 | - | RESIDENTIAL PORTION OF A MIXED–USE PROPERTY IN ACCORDANCE WITH T HIS 22 | |
| 224 | - | SECTION. 23 | |
| 219 | + | (C) A COUNTY MAY CALCULATE THE EXEMPTION UNDER THIS SECTION : 20 | |
| 225 | 220 | ||
| 226 | - | (C) A COUNTY MAY CALCULATE THE EXEMPTION UNDER THIS SECTION: 24 | |
| 221 | + | (1) AS A PERCENTAGE OF A MIXED–USE PROPERTY ’S SPECIAL TAX 21 | |
| 222 | + | LIABILITY THAT IS EQ UAL TO THE PERCENTAG E OF THE TOTAL SQUAR E FOOTAGE 22 | |
| 223 | + | OF THE PROPERTY THAT IS USED FOR RESIDENT IAL PURPOSES; 23 | |
| 227 | 224 | ||
| 228 | - | ( | |
| 229 | - | LIABILITY THAT IS | |
| 230 | - | ||
| 225 | + | (2) AS A PERCENTAGE OF A MIXED–USE PROPERTY ’S SPECIAL TAX 24 | |
| 226 | + | LIABILITY THAT IS EQUAL TO THE PERC ENTAGE OF THE TOTAL INCOME PRODUCED 25 | |
| 227 | + | BY THE PROPERTY THAT IS DERIVED FROM RESI DENTIAL USE; OR 26 | |
| 231 | 228 | ||
| 232 | - | ( | |
| 233 | - | ||
| 234 | - | ||
| 229 | + | (3) USING ANY OTHER REAS ONABLE METHOD THAT E NSURES THE 27 | |
| 230 | + | ENTIRE RESIDENTIAL P ORTION OF A MIXED –USE PROPERTY IS NOT SUBJECT TO THE 28 | |
| 231 | + | SPECIAL RATE. 29 | |
| 235 | 232 | 6 HOUSE BILL 23 | |
| 236 | 233 | ||
| 237 | 234 | ||
| 238 | - | (3) USING ANY OTHER REAS ONABLE METHOD THAT ENSURES THE 1 | |
| 239 | - | ENTIRE RESIDENTIAL P ORTION OF A MIXED –USE PROPERTY IS NOT SUBJECT TO THE 2 | |
| 240 | - | SPECIAL RATE. 3 | |
| 235 | + | (D) THE EXEMPTION UNDER THIS SECTION C ONTINUES FOR AS LONG AS THE 1 | |
| 236 | + | SPECIAL RATE IS IN E FFECT. 2 | |
| 241 | 237 | ||
| 242 | - | (D) THE EXEMPTION UNDER T HIS SECTION CONTINUE S FOR AS LONG AS THE 4 | |
| 243 | - | SPECIAL RATE IS IN E FFECT. 5 | |
| 238 | + | (E) A COUNTY SHALL AUTOMAT ICALLY GRANT THE EXEMPTION UNDER THIS 3 | |
| 239 | + | SECTION WITHOUT REQU IRING AN APPLICATION FROM THE PROPERTY OW NER IF, 4 | |
| 240 | + | BASED ON PUBLICLY AV AILABLE RECORDS , THE COUNTY IS ABLE T O: 5 | |
| 244 | 241 | ||
| 245 | - | (E) A COUNTY SHALL AUTOMAT ICALLY GRANT THE EXEMPTION UNDER THIS 6 | |
| 246 | - | SECTION WITHOUT REQU IRING AN APPLICATION FROM THE PROPERTY OW NER IF, 7 | |
| 247 | - | BASED ON PUBLICLY AV AILABLE RECORDS , THE COUNTY IS ABLE T O: 8 | |
| 242 | + | (1) IDENTIFY A MIXED –USE PROPERTY THAT IS SUBJECT TO THE 6 | |
| 243 | + | SPECIAL RATE; AND 7 | |
| 248 | 244 | ||
| 249 | - | ( | |
| 250 | - | ||
| 245 | + | (2) CALCULATE THE EXEMPTION DUE FOR THE RESIDENT IAL 8 | |
| 246 | + | PORTION OF THAT MIXE D–USE PROPERTY . 9 | |
| 251 | 247 | ||
| 252 | - | (2) CALCULATE THE EXEMPT ION DUE FOR THE RESI DENTIAL 11 | |
| 253 | - | PORTION OF THAT MIXE D–USE PROPERTY . 12 | |
| 248 | + | (F) (1) IF, BASED ON PUBLICLY AV AILABLE RECORD S, A COUNTY IS ABLE 10 | |
| 249 | + | TO IDENTIFY A MIXED –USE PROPERTY THAT IS SUBJECT TO THE SPECI AL RATE BUT 11 | |
| 250 | + | HAS INSUFFICIENT INF ORMATION TO CALCULAT E THE EXEMPTION DUE FOR THE 12 | |
| 251 | + | RESIDENTIAL PORTION OF THAT MIXED–USE PROPERTY , THE COUNTY MAY REQUE ST 13 | |
| 252 | + | ADDITIONAL INFORMATI ON FROM THE OWNER OF THE MIXED–USE PROPERTY TO 14 | |
| 253 | + | ENABLE THE COUNTY TO CALCULATE THE EXEMPTION DUE. 15 | |
| 254 | 254 | ||
| 255 | - | (F) (1) IF, BASED ON PUBLICLY AV AILABLE RECORDS , A COUNTY IS ABLE 13 | |
| 256 | - | TO IDENTIFY A MIXED –USE PROPERTY THAT IS SUBJECT TO THE SPECI AL RATE BUT 14 | |
| 257 | - | HAS INSUFFICIENT INF ORMATION TO CALCULAT E THE EXEMP TION DUE FOR THE 15 | |
| 258 | - | RESIDENTIAL PORTION OF THAT MIXED–USE PROPERTY , THE COUNTY MAY REQUE ST 16 | |
| 259 | - | ADDITIONAL INFORMATI ON FROM THE OWNER OF THE MIXED–USE PROPERTY TO 17 | |
| 260 | - | ENABLE THE COUNTY TO CALCULATE THE EXEMPT ION DUE. 18 | |
| 255 | + | (2) IF AN OWNER OF A MIXE D–USE PROPERTY DOES NO T PROVIDE 16 | |
| 256 | + | THE INFORMATION REQU ESTED TO CALCULATE T HE EXEMPTION DUE, THE COUNTY 17 | |
| 257 | + | IS NOT REQUIRED TO G RANT THE EXEMPTION UNDER THIS SECTION T O THAT 18 | |
| 258 | + | MIXED–USE PROPERTY . 19 | |
| 261 | 259 | ||
| 262 | - | ( | |
| 263 | - | ||
| 264 | - | ||
| 265 | - | ||
| 260 | + | (G) A COUNTY SHALL ACCEPT APPLICATIONS FOR THE EXEMPTION UNDER 20 | |
| 261 | + | THIS SECTION FROM AN OWNER OF A MIXED –USE PROPERTY THAT IS NOT 21 | |
| 262 | + | AUTOMATICALLY GRANTE D AN EXEMPTION UNDER SUBSECTION (E) OF THIS 22 | |
| 263 | + | SECTION. 23 | |
| 266 | 264 | ||
| 267 | - | ( | |
| 268 | - | THIS SECTION | |
| 269 | - | AUTOMATICALLY | |
| 270 | - | SECTION. | |
| 265 | + | (H) (1) A COUNTY SHALL PROVIDE WRITTEN NOTICE OF TH E EXEMPTION 24 | |
| 266 | + | UNDER THIS SECTION T O THE OWNER OF EACH PROPERTY THAT IS SUB JECT TO THE 25 | |
| 267 | + | SPECIAL RATE AND IS NOT AUTOMATICALLY GR ANTED AN EXEMPTION UNDER 26 | |
| 268 | + | SUBSECTION (E) OF THIS SECTION. 27 | |
| 271 | 269 | ||
| 272 | - | (H) (1) A COUNTY SHALL PROVIDE WRITTEN NOTICE OF TH E EXEMPTION 27 | |
| 273 | - | UNDER THIS SECTION T O THE OWNER OF EACH PROPERTY THAT IS SUB JECT TO THE 28 | |
| 274 | - | SPECIAL RATE AND IS NOT AUTO MATICALLY GRANTED AN EXEMPTION UNDER 29 | |
| 275 | - | SUBSECTION (E) OF THIS SECTION. 30 | |
| 270 | + | (2) THE NOTICE SHA LL INCLUDE: 28 | |
| 276 | 271 | ||
| 277 | - | (2) THE NOTICE SHALL INCL UDE: 31 | |
| 272 | + | (I) A DESCRIPTION OF THE EXEMPTION UNDER THIS SECTION ; 29 | |
| 273 | + | AND 30 | |
| 278 | 274 | ||
| 279 | - | (I) A DESCRIPTION OF THE EXEMPTION UNDER THIS SECTION; 32 | |
| 280 | - | AND 33 | |
| 275 | + | (II) INSTRUCTIONS ON HOW TO APPLY FOR THE EXEMPTION. 31 | |
| 281 | 276 | HOUSE BILL 23 7 | |
| 282 | 277 | ||
| 283 | 278 | ||
| 284 | - | (II) INSTRUCTIONS ON HOW TO APPLY FOR THE EXE MPTION. 1 | |
| 279 | + | (I) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 1 | |
| 280 | + | GOVERNING BODY OF A COUNTY MAY PROVIDE , BY LAW, FOR: 2 | |
| 285 | 281 | ||
| 286 | - | ( | |
| 287 | - | ||
| 282 | + | (1) REGULATIONS AND PROCEDU RES FOR THE APPLICAT ION AND 3 | |
| 283 | + | UNIFORM PROCESSING O F REQUESTS FOR THE EXEMPTION; AND 4 | |
| 288 | 284 | ||
| 289 | - | ( | |
| 290 | - | ||
| 285 | + | (2) ANY OTHER PROVISION NECESSARY TO CARRY O UT THE 5 | |
| 286 | + | EXEMPTION UNDER THIS SECTION . 6 | |
| 291 | 287 | ||
| 292 | - | (2) ANY OTHER PROVISION NECESSARY TO CA RRY OUT THE 6 | |
| 293 | - | EXEMPTION UNDER THIS SECTION. 7 | |
| 288 | + | 9–112. 7 | |
| 294 | 289 | ||
| 295 | - | 9–112. 8 | |
| 290 | + | (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEAN INGS 8 | |
| 291 | + | INDICATED. 9 | |
| 296 | 292 | ||
| 297 | - | ( | |
| 298 | - | ||
| 293 | + | (2) “MIXED–USE PROPERTY ” MEANS A PROPERTY THA T INCLUDES 10 | |
| 294 | + | BOTH: 11 | |
| 299 | 295 | ||
| 300 | - | (2) “MIXED–USE PROPERTY ” MEANS A PROPERTY THA T INCLUDES 11 | |
| 301 | - | BOTH: 12 | |
| 296 | + | (I) A COMMERCIAL OR INDU STRIAL USE; AND 12 | |
| 302 | 297 | ||
| 303 | - | ( | |
| 298 | + | (II) A RESIDENTIAL USE . 13 | |
| 304 | 299 | ||
| 305 | - | ( | |
| 300 | + | (3) “PUBLICLY AVAILABLE RE CORDS” INCLUDES: 14 | |
| 306 | 301 | ||
| 307 | - | ( | |
| 302 | + | (I) VALUATION RECORDS OF THE DEPARTMENT ; 15 | |
| 308 | 303 | ||
| 309 | - | (I) VALUATION RECORDS OF THE DEPARTMENT ; 16 | |
| 304 | + | (II) COUNTY RECORDS , INCLUDING LICENSE OR PERMIT 16 | |
| 305 | + | RECORDS; AND 17 | |
| 310 | 306 | ||
| 311 | - | (II) COUNTY RECORDS , INCLUDING LICENSE OR PERMIT 17 | |
| 312 | - | RECORDS; AND 18 | |
| 307 | + | (III) ANY OTHER RECORD FRO M A GOVERNMENTAL OR A 18 | |
| 308 | + | PRIVATE SOURCE THAT IS ACCESSIBLE TO A C OUNTY AND PROVIDES R ELIABLE 19 | |
| 309 | + | INFORMATION ON THE U SE OF PROPERTY . 20 | |
| 313 | 310 | ||
| 314 | - | (III) ANY OTHER RECORD FRO M A GOVERNMENTAL OR A 19 | |
| 315 | - | PRIVATE SOURCE THAT IS ACCESSIBLE TO A C OUNTY AND PROVIDES R ELIABLE 20 | |
| 316 | - | INFORMATION ON THE U SE OF PROPERTY . 21 | |
| 311 | + | (B) IF THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 21 | |
| 312 | + | GOVERNING BODY OF A COUNTY SETS A SPECIA L RATE UNDER § 6–302(C)(2) OF THIS 22 | |
| 313 | + | ARTICLE, THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING 23 | |
| 314 | + | BODY OF THE COUNTY S HALL, BY LAW, GRANT EITHER: 24 | |
| 317 | 315 | ||
| 318 | - | (B) IF THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 22 | |
| 319 | - | GOVERNING BODY OF A COUNTY SETS A SPECIA L RATE UNDER § 6–302(C)(2) OF THIS 23 | |
| 320 | - | ARTICLE, THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING 24 | |
| 321 | - | BODY OF THE COUNTY S HALL, BY LAW, GRANT EITHER : 25 | |
| 322 | - | ||
| 323 | - | (1) AN EXEMPTION FROM TH E SPECIAL RATE FOR T HE ENTIRE 26 | |
| 324 | - | RESIDENTIAL PORTION OF A MIXED–USE PROPERTY IN ACCO RDANCE WITH § 7–402 27 | |
| 325 | - | OF THIS ARTICLE; OR 28 | |
| 316 | + | (1) AN EXEMPTION FROM TH E SPECIAL RATE FOR THE ENTIRE 25 | |
| 317 | + | RESIDENTIAL PORTION OF A MIXED–USE PROPERTY IN ACCO RDANCE WITH § 7–402 26 | |
| 318 | + | OF THIS ARTICLE; OR 27 | |
| 326 | 319 | 8 HOUSE BILL 23 | |
| 327 | 320 | ||
| 328 | 321 | ||
| 329 | 322 | (2) A CREDIT AGAINST THE SPECIAL RATE FOR THE ENTIRE 1 | |
| 330 | 323 | RESIDENTIAL PORTION OF A MIXED–USE PROPERTY IN ACCO RDANCE WITH THIS 2 | |
| 331 | 324 | SECTION. 3 | |
| 332 | 325 | ||
| 333 | 326 | (C) A COUNTY MAY CALCULATE T HE CREDIT UNDER THIS SECTION: 4 | |
| 334 | 327 | ||
| 335 | 328 | (1) AS A PERCENTAGE OF A MIXED–USE PROPERTY ’S SPECIAL TAX 5 | |
| 336 | 329 | LIABILITY THAT IS EQ UAL TO THE PERCENTAG E OF THE TOTAL SQUAR E FOOTAGE 6 | |
| 337 | 330 | OF THE PROPERTY THAT IS USED FOR RESIDENT IAL PURPOSES; 7 | |
| 338 | 331 | ||
| 339 | 332 | (2) AS A PERCEN TAGE OF A MIXED –USE PROPERTY ’S SPECIAL TAX 8 | |
| 340 | 333 | LIABILITY THAT IS EQ UAL TO THE PERCENTAG E OF THE TOTAL INCOM E PRODUCED 9 | |
| 341 | 334 | BY THE PROPERTY THAT IS DERIVED FROM RESI DENTIAL USE; OR 10 | |
| 342 | 335 | ||
| 343 | 336 | (3) USING ANY OTHER REAS ONABLE METHOD THAT E NSURES THE 11 | |
| 344 | 337 | ENTIRE RESIDENTIAL P ORTION OF A MIXED–USE PROPERTY IS NOT SUBJECT TO THE 12 | |
| 345 | 338 | SPECIAL RATE. 13 | |
| 346 | 339 | ||
| 347 | 340 | (D) THE CREDIT UNDER THIS SECTION CONTINUES FO R AS LONG AS THE 14 | |
| 348 | 341 | SPECIAL RATE IS IN E FFECT. 15 | |
| 349 | 342 | ||
| 350 | 343 | (E) A COUNTY SHALL AUTOMAT ICALLY GRANT THE CREDIT UNDER THIS 16 | |
| 351 | 344 | SECTION WITHOUT REQU IRING AN APPLICATION FROM THE PROPERTY OW NER IF, 17 | |
| 352 | 345 | BASED ON PUBLICLY AV AILABLE RECORDS , THE COUNTY IS ABLE T O: 18 | |
| 353 | 346 | ||
| 354 | 347 | (1) IDENTIFY A MIXED –USE PROPERTY THAT IS SUBJECT TO THE 19 | |
| 355 | 348 | SPECIAL RATE; AND 20 | |
| 356 | 349 | ||
| 357 | 350 | (2) CALCULATE THE CREDIT DUE FOR THE RESIDENT IAL PORTION OF 21 | |
| 358 | 351 | THAT MIXED–USE PROPERTY . 22 | |
| 359 | 352 | ||
| 360 | 353 | (F) (1) IF, BASED ON PUBLICLY AV AILABLE RECORDS , A COUNTY IS ABLE 23 | |
| 361 | 354 | TO IDENTIFY A MIXED –USE PROPERTY THAT IS SUBJECT TO THE SPECI AL RATE BUT 24 | |
| 362 | 355 | HAS INSUFFICIENT INF ORMATION TO C ALCULATE THE CREDIT DUE FOR THE 25 | |
| 363 | 356 | RESIDENTIAL PORTION OF THAT MIXED–USE PROPERTY , THE COUNTY MAY REQUE ST 26 | |
| 364 | 357 | ADDITIONAL INFORMATI ON FROM THE OWNER OF THE MIXED–USE PROPERTY TO 27 | |
| 365 | 358 | ENABLE THE COUNTY TO CALCULATE THE CREDIT DUE. 28 | |
| 366 | 359 | ||
| 367 | 360 | (2) IF AN OWNER OF A MIXE D–USE PROPE RTY DOES NOT PROVIDE 29 | |
| 368 | 361 | THE INFORMATION REQU ESTED TO CALCULATE T HE CREDIT DUE , THE COUNTY IS 30 | |
| 369 | 362 | NOT REQUIRED TO GRAN T THE CREDIT UNDER T HIS SECTION TO THAT MIXED–USE 31 | |
| 370 | 363 | PROPERTY. 32 | |
| 371 | 364 | HOUSE BILL 23 9 | |
| 372 | 365 | ||
| 373 | 366 | ||
| 374 | 367 | (G) A COUNTY SHALL ACCEPT APPLICATIONS FOR THE CREDIT UNDER THIS 1 | |
| 375 | 368 | SECTION FROM AN OW NER OF A MIXED –USE PROPERTY THAT IS NOT 2 | |
| 376 | 369 | AUTOMATICALLY GRANTE D A CREDIT UNDER SUB SECTION (E) OF THIS SECTION. 3 | |
| 377 | 370 | ||
| 378 | 371 | (H) (1) A COUNTY SHALL PROVIDE WRITTEN NOTICE OF TH E CREDIT 4 | |
| 379 | 372 | UNDER THIS SECTION T O THE OWNER OF EACH PROPERTY THAT IS SUB JECT TO THE 5 | |
| 380 | 373 | SPECIAL RAT E AND IS NOT AUTOMAT ICALLY GRANTED A CRE DIT UNDER 6 | |
| 381 | 374 | SUBSECTION (E) OF THIS SECTION. 7 | |
| 382 | 375 | ||
| 383 | 376 | (2) THE NOTICE SHALL INCL UDE: 8 | |
| 384 | 377 | ||
| 385 | 378 | (I) A DESCRIPTION OF THE CREDIT UNDER THIS SE CTION; AND 9 | |
| 386 | 379 | ||
| 387 | 380 | (II) INSTRUCTIONS ON HOW TO APPLY FOR THE CRE DIT. 10 | |
| 388 | 381 | ||
| 389 | 382 | (I) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 11 | |
| 390 | 383 | GOVERNING BODY OF A COUNTY MAY PROVIDE , BY LAW, FOR: 12 | |
| 391 | 384 | ||
| 392 | 385 | (1) REGULATIONS AND PROC EDURES FOR THE APPLI CATION AND 13 | |
| 393 | 386 | UNIFORM PROCESSING O F REQUESTS FOR THE C REDIT; AND 14 | |
| 394 | 387 | ||
| 395 | 388 | (2) ANY OTHER PROVISION NECESSARY TO CARRY O UT THE CREDI T 15 | |
| 396 | 389 | UNDER THIS SECTION . 16 | |
| 397 | 390 | ||
| 398 | 391 | 9–275. 17 | |
| 399 | 392 | ||
| 400 | 393 | (A) IF THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 18 | |
| 401 | 394 | GOVERNING BODY OF A COUNTY SETS A SPECIA L RATE UNDER § 6–302(C)(2) OF THIS 19 | |
| 402 | 395 | ARTICLE, THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING 20 | |
| 403 | 396 | BODY OF THE COUNTY M AY GRANT, BY LAW, A PROPERTY TAX CR EDIT AGAINST THE 21 | |
| 404 | 397 | SPECIAL RATE IMPOSED ON REAL PROPERTY OWNED OR LEASED BY A BUSINESS 22 | |
| 405 | 398 | THAT EMPLOYS 15 OR FEWER EMPLOYEES . 23 | |
| 406 | 399 | ||
| 407 | 400 | (B) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 24 | |
| 408 | 401 | GOVERNING BODY OF A COUNTY MAY PROVIDE , BY LAW, FOR: 25 | |
| 409 | 402 | ||
| 410 | 403 | (1) THE AMOUNT AND DURAT ION OF THE TAX CREDI T; 26 | |
| 411 | 404 | ||
| 412 | 405 | (2) ADDITIONAL ELIGIBILI TY REQUIREMENTS FOR THE TAX CREDIT; 27 | |
| 413 | 406 | ||
| 414 | 407 | (3) PROCEDURES FOR THE A PPLICATION AND UNIFO RM PROCESSING 28 | |
| 415 | 408 | OF REQUESTS FOR THE TAX CREDIT; AND 29 | |
| 416 | 409 | 10 HOUSE BILL 23 | |
| 417 | 410 | ||
| 418 | 411 | ||
| 419 | 412 | (4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THE TAX 1 | |
| 420 | 413 | CREDIT UNDER THIS SE CTION. 2 | |
| 421 | 414 | ||
| 422 | 415 | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 3 | |
| 423 | 416 | 1, 2025, and shall be applicable to all taxable years beginning after June 30, 2025. 4 | |
| 424 | - | ||
| 425 | - | ||
| 426 | - | ||
| 427 | - | ||
| 428 | - | Approved: | |
| 429 | - | ________________________________________________________________________________ | |
| 430 | - | Governor. | |
| 431 | - | ________________________________________________________________________________ | |
| 432 | - | Speaker of the House of Delegates. | |
| 433 | - | ________________________________________________________________________________ | |
| 434 | - | President of the Senate. |