EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0389*
HOUSE BILL 389
Q1, O4 5lr1754
CF 5lr1755
By: Delegates Palakovich Carr and D. Jones
Introduced and read first time: January 16, 2025
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Property Tax – Day Care Centers, Child Care Homes, and Child Care Centers 2
FOR the purpose of exempting personal property used in connection with certain large 3
family child care homes from valuation and taxation; repealing a requirement that 4
certain real property improvements to day care centers or child care centers be 5
completed after certain dates in order to be eligible for certain property tax credits; 6
authorizing the Mayor and City Council of Baltimore City or the governing body of a 7
county or a municipal corporation to grant, by law, a property tax credit against the 8
real property tax owed on the portion of real property used for certain large family 9
child care homes; increasing the maximum amount of a property tax credit that may 10
be granted for certain child care homes, child care centers, and day care centers; 11
establishing the maximum amount of a property tax credit that may be granted for 12
certain child care homes and child care centers; and generally relating to property 13
tax credits and exemptions for day care centers, child care homes, and child care 14
centers. 15
BY repealing and reenacting, with amendments, 16
Article – Tax – Property 17
Section 7–227, 9–213, and 9–214 18
Annotated Code of Maryland 19
(2019 Replacement Volume and 2024 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – Tax – Property 23
7–227. 24
2 HOUSE BILL 389
(a) Except for personal property used in connection with a business, occupation, 1
or profession, personal property owned by an individual and located at the individual’s 2
place of residence is not subject to valuation or to property tax. 3
(b) Notwithstanding subsection (a) of this section, personal property is not subject 4
to valuation or to property tax if the personal property is: 5
(1) owned by an individual; 6
(2) located at the individual’s place of residence; and 7
(3) used in connection with a family child care home OR LARGE FAMILY 8
CHILD CARE HOME that is registered under [Title 5, Subtitle 5, Part V of the Family Law 9
Article] TITLE 9.5, SUBTITLE 3 OF THE EDUCATION ARTICLE. 10
(c) (1) Notwithstanding subsection (a) of this section, personal property is not 11
subject to valuation or to property tax if: 12
(i) the personal property is owned by an individual and is used in 13
connection with a business, occupation, or profession that is located at the individual’s 14
principal residence; and 15
(ii) the sum total of the personal property, excluding vehicles exempt 16
under § 7–230 of this subtitle, had a total original cost of less than $20,000. 17
(2) If the individual attests to owning a sum total of personal property with 18
an original cost of less than $20,000, the Department may not: 19
(i) collect personal property information from the individual; or 20
(ii) require the individual to submit a personal property tax return. 21
9–213. 22
(a) The Mayor and City Council of Baltimore City or the governing body of a 23
county or of a municipal corporation may grant, by law, a property tax credit against the 24
county or municipal corporation property tax imposed on that portion of real property, 25
including any improvement, that [is substantially completed after July 1, 1987, if that 26
portion of the improved property] contains an area set aside and dedicated exclusively for 27
a day care center that is: 28
(1) registered as a family child care home OR LARGE FAMILY CHIL D CARE 29
HOME under Title 9.5, Subtitle 3 of the Education Article; 30
(2) licensed as a child care center under Title 9.5, Subtitle 4 of the 31
Education Article; 32 HOUSE BILL 389 3
(3) licensed as a day care center for the elderly under Title 14, Subtitle 2 of 1
the Health – General Article; or 2
(4) licensed as a day care center for adults under Title 14, Subtitle 3 of the 3
Health – General Article. 4
(b) The amount of the annual credit may not exceed [$3,000] $10,000 or the 5
amount of county or municipal corporation property tax attributable to that portion of 6
property for which the credit was granted, whichever is less. 7
(c) [Except as provided in] SUBJECT TO subsection (b) of this section, THE 8
MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING BODY OF a 9
county or municipal corporation may provide, by law, for: 10
(1) the amount of the property tax credit under this section; 11
(2) the duration of a property tax credit under this section; and 12
(3) any other provision necessary to carry out this section. 13
(d) A credit under this section may not be granted if the real property qualifies 14
for a credit under § 9–214 of this subtitle. 15
9–214. 16
(a) The Mayor and City Council of Baltimore City or the governing body of a 17
county or of a municipal corporation may grant, by law, a property tax credit against the 18
county or municipal corporation property tax imposed on that portion of the real property 19
on which an improvement is substantially completed [after July 1, 1988] if: 20
(1) the property is owned by a business having at least 25 employees; and 21
(2) the improvement contains an area set aside and dedicated exclusively 22
for a child care center that is: 23
(i) registered as a family child care home OR LARGE FA MILY 24
CHILD CARE HOME under Title 9.5, Subtitle 3 of the Education Article; or 25
(ii) licensed as a child care center under Title 9.5, Subtitle 4 of the 26
Education Article. 27
(b) THE AMOUNT OF THE ANN UAL CREDIT MAY NOT E XCEED $10,000 OR 28
THE AMOUNT OF COUNTY OR MUNICIPAL CORPORATION PROPERTY TAX 29
ATTRIBUTABLE TO THAT PORTION OF PROPERTY FOR WHICH THE CREDIT WAS 30
GRANTED, WHICHEVER IS LESS . 31 4 HOUSE BILL 389
(C) [The] SUBJECT TO SUBSECTION (B) OF THIS SECTION, THE MAYOR AND 1
CITY COUNCIL OF BALTIMORE CITY OR THE governing body of a county or of a 2
municipal corporation may provide, by law, for: 3
(1) the amount and duration of the property tax credit under [subsection 4
(a) of] this section; and 5
(2) any other provision necessary to carry out the property tax credit under 6
[subsection (a) of] this section. 7
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 8
1, 2025, and shall be applicable to all taxable years beginning after June 30, 2025. 9