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.
*hb0389*
HOUSE BILL 389
Q1, O4 5lr1754
CF SB 516
By: Delegates Palakovich Carr and D. Jones
Introduced and read first time: January 16, 2025
Assigned to: Ways and Means
Committee Report: Favorable
House action: Adopted
Read second time: February 26, 2025
CHAPTER ______
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
2 HOUSE BILL 389
Article – Tax – Property 1
7–227. 2
(a) Except for personal property used in connection with a business, occupation, 3
or profession, personal property owned by an individual and located at the individual’s 4
place of residence is not subject to valuation or to property tax. 5
(b) Notwithstanding subsection (a) of this section, personal property is not subject 6
to valuation or to property tax if the personal property is: 7
(1) owned by an individual; 8
(2) located at the individual’s place of residence; and 9
(3) used in connection with a family child care home OR LARGE FAMILY 10
CHILD CARE HOME that is registered under [Title 5, Subtitle 5, Part V of the Family Law 11
Article] TITLE 9.5, SUBTITLE 3 OF THE EDUCATION ARTICLE. 12
(c) (1) Notwithstanding subsection (a) of this section, personal property is not 13
subject to valuation or to property tax if: 14
(i) the personal property is owned by an individual and is used in 15
connection with a business, occupation, or profession that is located at the individual’s 16
principal residence; and 17
(ii) the sum total of the personal property, excluding vehicles exempt 18
under § 7–230 of this subtitle, had a total original cost of less than $20,000. 19
(2) If the individual attests to owning a sum total of personal property with 20
an original cost of less than $20,000, the Department may not: 21
(i) collect personal property information from the individual; or 22
(ii) require the individual to submit a personal property tax return. 23
9–213. 24
(a) The Mayor and City Council of Baltimore City or the governing body of a 25
county or of a municipal corporation may grant, by law, a property tax credit against the 26
county or municipal corporation property tax imposed on that portion of real property, 27
including any improvement, that [is substantially completed after July 1, 1987, if that 28
portion of the improved property] contains an area set aside and dedicated exclusively for 29
a day care center that is: 30
HOUSE BILL 389 3
(1) registered as a family child care home OR LARGE FAMILY CHILD CARE 1
HOME under Title 9.5, Subtitle 3 of the Education Article; 2
(2) licensed as a child care center under Title 9.5, Subtitle 4 of the 3
Education Article; 4
(3) licensed as a day care center for the elderly under Title 14, Subtitle 2 of 5
the Health – General Article; or 6
(4) licensed as a day care center for adults under Title 14, Subtitle 3 of the 7
Health – General Article. 8
(b) The amount of the annual credit may not exceed [$3,000] $10,000 or the 9
amount of county or municipal corporation property tax attributable to that portion of 10
property for which the credit was granted, whichever is less. 11
(c) [Except as provided in] SUBJECT TO subsection (b) of this section, THE 12
MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING BODY OF a 13
county or municipal corporation may provide, by law, for: 14
(1) the amount of the property tax credit under this section; 15
(2) the duration of a property tax credit under this section; and 16
(3) any other provision necessary to carry out this section. 17
(d) A credit under this section may not be granted if the real property qualifies 18
for a credit under § 9–214 of this subtitle. 19
9–214. 20
(a) The Mayor and City Council of Baltimore City or the governing body of a 21
county or of a municipal corporation may grant, by law, a property tax credit against the 22
county or municipal corporation property tax imposed on that portion of the real property 23
on which an improvement is substantially completed [after July 1, 1988] if: 24
(1) the property is owned by a business having at least 25 employees; and 25
(2) the improvement contains an area set aside and dedicated exclusively 26
for a child care center that is: 27
(i) registered as a family child care home OR LARGE FAMILY 28
CHILD CARE HOME under Title 9.5, Subtitle 3 of the Education Article; or 29
(ii) licensed as a child care center under Title 9.5, Subtitle 4 of the 30
Education Article. 31 4 HOUSE BILL 389
(b) THE AMOUNT OF THE ANN UAL CREDIT MAY NOT E XCEED $10,000 OR 1
THE AMOUNT OF COUNTY OR MUNICIPAL CORPORATION PROPERTY TAX 2
ATTRIBUTABLE TO THAT PORTION OF PROPERTY FOR WHICH THE CREDIT WAS 3
GRANTED, WHICHEVER IS LESS . 4
(C) [The] SUBJECT TO SUBSECTION (B) OF THIS SECTION, THE MAYOR AND 5
CITY COUNCIL OF BALTIMORE CITY OR THE governing body of a county or of a 6
municipal corporation may provide, by law, for: 7
(1) the amount and duration of the property tax credit under [subsection 8
(a) of] this section; and 9
(2) any other provision necessary to carry out the property tax credit under 10
[subsection (a) of] this section. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 12
1, 2025, and shall be applicable to all taxable years beginning after June 30, 2025. 13
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.