Maryland 2025 Regular Session

Maryland House Bill HB389 Compare Versions

Version 1 (Old)

Version 2 (New)

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		hb0389
9	6
10	7		HOUSE BILL 389
11	8		Q1, O4 5lr1754
12		-	CF ~~SB 516~~
	9	+	CF 5lr1755
13	10		By: Delegates Palakovich Carr and D. Jones
14	11		Introduced and read first time: January 16, 2025
15	12		Assigned to: Ways and Means
16		-	Committee Report: Favorable
17		-	House action: Adopted
18		-	Read second time: February 26, 2025
19	13
20		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
21	15
22	16		AN ACT concerning 1
23	17
24	18		Property Tax – Day Care Centers, Child Care Homes, and Child Care Centers 2
25	19
26	20		FOR the purpose of exempting personal property used in connection with certain large 3
27	21		family child care homes from valuation and taxation; repealing a requirement that 4
28	22		certain real property improvements to day care centers or child care centers be 5
29	23		completed after certain dates in order to be eligible for certain property tax credits; 6
30	24		authorizing the Mayor and City Council of Baltimore City or the governing body of a 7
31	25		county or a municipal corporation to grant, by law, a property tax credit against the 8
32	26		real property tax owed on the portion of real property used for certain large family 9
33	27		child care homes; increasing the maximum amount of a property tax credit that may 10
34	28		be granted for certain child care homes, child care centers, and day care centers; 11
35	29		establishing the maximum amount of a property tax credit that may be granted for 12
36	30		certain child care homes and child care centers; and generally relating to property 13
37	31		tax credits and exemptions for day care centers, child care homes, and child care 14
38	32		centers. 15
39	33
40	34		BY repealing and reenacting, with amendments, 16
41	35		Article – Tax – Property 17
42	36		Section 7–227, 9–213, and 9–214 18
43	37		Annotated Code of Maryland 19
44	38		(2019 Replacement Volume and 2024 Supplement) 20
45	39
46	40		SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
47	41		That the Laws of Maryland read as follows: 22
	42	+
	43	+	Article – Tax – Property 23
	44	+
	45	+	7–227. 24
48	46		2 HOUSE BILL 389
49	47
50	48
51		-	Article – Tax – Property 1
	49	+	(a) Except for personal property used in connection with a business, occupation, 1
	50	+	or profession, personal property owned by an individual and located at the individual’s 2
	51	+	place of residence is not subject to valuation or to property tax. 3
52	52
53		-	7–227. 2
	53	+	(b) Notwithstanding subsection (a) of this section, personal property is not subject 4
	54	+	to valuation or to property tax if the personal property is: 5
54	55
55		-	(a) Except for personal property used in connection with a business, occupation, 3
56		-	or profession, personal property owned by an individual and located at the individual’s 4
57		-	place of residence is not subject to valuation or to property tax. 5
	56	+	(1) owned by an individual; 6
58	57
59		-	(b) Notwithstanding subsection (a) of this section, personal property is not subject 6
60		-	to valuation or to property tax if the personal property is: 7
	58	+	(2) located at the individual’s place of residence; and 7
61	59
62		-	(1) owned by an individual; 8
	60	+	(3) used in connection with a family child care home OR LARGE FAMILY 8
	61	+	CHILD CARE HOME that is registered under [Title 5, Subtitle 5, Part V of the Family Law 9
	62	+	Article] TITLE 9.5, SUBTITLE 3 OF THE EDUCATION ARTICLE. 10
63	63
64		-	(2) located at the individual’s place of residence; and 9
	64	+	(c) (1) Notwithstanding subsection (a) of this section, personal property is not 11
	65	+	subject to valuation or to property tax if: 12
65	66
66		-	(3) used in ~~connection with a family child care home OR LARGE FAMILY 10~~
67		-	~~CHILD CARE HOME~~ that is ~~registered under [Title 5, Subtitle 5, Part V of~~ the ~~Family Law 11~~
68		-	~~Article] TITLE 9.5, SUBTITLE 3 OF THE EDUCATION ARTICLE. 12~~
	67	+	(i) the personal property is owned by an individual and is used in 13
	68	+	connection with a business, occupation, or profession that is located at the individual’s 14
	69	+	principal residence; and 15
69	70
70		-	(c) ~~(1) Notwithstanding subsection (a)~~ of ~~this section,~~ personal property ~~is not 13~~
71		-	~~subject to valuation or to property tax if:~~ 14
	71	+	(ii) the sum total of the personal property, excluding vehicles exempt 16
	72	+	under § 7–230 of this subtitle, had a total original cost of less than $20,000. 17
72	73
73		-	(i) the personal property is owned by an individual and is used in 15
74		-	connection with a business, occupation, or profession that is located at the individual’s 16
75		-	principal residence; and 17
	74	+	(2) If the individual attests to owning a sum total of personal property with 18
	75	+	an original cost of less than $20,000, the Department may not: 19
76	76
77		-	(ii) the sum total of the personal property, excluding vehicles exempt 18
78		-	under § 7–230 of this subtitle, had a total original cost of less than $20,000. 19
	77	+	(i) collect personal property information from the individual; or 20
79	78
80		-	(2) If the individual attests to owning a sum total of personal property with 20
81		-	an original cost of less than $20,000, the Department may not: 21
	79	+	(ii) require the individual to submit a personal property tax return. 21
82	80
83		-	~~(i) collect personal property information from the individual; or~~ 22
	81	+	9–213. 22
84	82
85		-	(ii) require the individual to submit a personal property tax return. 23
	83	+	(a) The Mayor and City Council of Baltimore City or the governing body of a 23
	84	+	county or of a municipal corporation may grant, by law, a property tax credit against the 24
	85	+	county or municipal corporation property tax imposed on that portion of real property, 25
	86	+	including any improvement, that [is substantially completed after July 1, 1987, if that 26
	87	+	portion of the improved property] contains an area set aside and dedicated exclusively for 27
	88	+	a day care center that is: 28
86	89
87		-	9–213. 24
	90	+	(1) registered as a family child care home OR LARGE FAMILY CHIL D CARE 29
	91	+	HOME under Title 9.5, Subtitle 3 of the Education Article; 30
88	92
89		-	(a) The Mayor and City Council of Baltimore City or the governing body of a 25
90		-	county or of a municipal corporation may grant, by law, a property tax credit against the 26
91		-	county or municipal corporation property tax imposed on that portion of real property, 27
92		-	including any improvement, that [is substantially completed after July 1, 1987, if that 28
93		-	portion of the improved property] contains an area set aside and dedicated exclusively for 29
94		-	a day care center that is: 30
95		-	HOUSE BILL 389 3
96		-
97		-
98		-	(1) registered as a family child care home OR LARGE FAMILY CHILD CARE 1
99		-	HOME under Title 9.5, Subtitle 3 of the Education Article; 2
100		-
101		-	(2) licensed as a child care center under Title 9.5, Subtitle 4 of the 3
102		-	Education Article; 4
103		-
104		-	(3) licensed as a day care center for the elderly under Title 14, Subtitle 2 of 5
105		-	the Health – General Article; or 6
106		-
107		-	(4) licensed as a day care center for adults under Title 14, Subtitle 3 of the 7
108		-	Health – General Article. 8
109		-
110		-	(b) The amount of the annual credit may not exceed [$3,000] $10,000 or the 9
111		-	amount of county or municipal corporation property tax attributable to that portion of 10
112		-	property for which the credit was granted, whichever is less. 11
113		-
114		-	(c) [Except as provided in] SUBJECT TO subsection (b) of this section, THE 12
115		-	MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING BODY OF a 13
116		-	county or municipal corporation may provide, by law, for: 14
117		-
118		-	(1) the amount of the property tax credit under this section; 15
119		-
120		-	(2) the duration of a property tax credit under this section; and 16
121		-
122		-	(3) any other provision necessary to carry out this section. 17
123		-
124		-	(d) A credit under this section may not be granted if the real property qualifies 18
125		-	for a credit under § 9–214 of this subtitle. 19
126		-
127		-	9–214. 20
128		-
129		-	(a) The Mayor and City Council of Baltimore City or the governing body of a 21
130		-	county or of a municipal corporation may grant, by law, a property tax credit against the 22
131		-	county or municipal corporation property tax imposed on that portion of the real property 23
132		-	on which an improvement is substantially completed [after July 1, 1988] if: 24
133		-
134		-	(1) the property is owned by a business having at least 25 employees; and 25
135		-
136		-	(2) the improvement contains an area set aside and dedicated exclusively 26
137		-	for a child care center that is: 27
138		-
139		-	(i) registered as a family child care home OR LARGE FAMILY 28
140		-	CHILD CARE HOME under Title 9.5, Subtitle 3 of the Education Article; or 29
141		-
142		-	(ii) licensed as a child care center under Title 9.5, Subtitle 4 of the 30
143		-	Education Article. 31 4 HOUSE BILL 389
	93	+	(2) licensed as a child care center under Title 9.5, Subtitle 4 of the 31
	94	+	Education Article; 32 HOUSE BILL 389 3
144	95
145	96
146	97
147		-	(b) THE AMOUNT OF THE ANN UAL CREDIT MAY NOT E XCEED $10,000 OR 1
148		-	THE AMOUNT OF COUNTY OR MUNICIPAL CORPORATION PROPERTY TAX 2
149		-	ATTRIBUTABLE TO THAT PORTION OF PROPERTY FOR WHICH THE CREDIT WAS 3
150		-	GRANTED, WHICHEVER IS LESS . 4
	98	+	(3) licensed as a day care center for the elderly under Title 14, Subtitle 2 of 1
	99	+	the Health – General Article; or 2
151	100
152		-	(C) [The] SUBJECT TO SUBSECTION (B) OF THIS SECTION, THE MAYOR AND 5
153		-	CITY COUNCIL OF BALTIMORE CITY OR THE governing body of a county or of a 6
154		-	municipal corporation may provide, by law, for: 7
	101	+	(4) licensed as a day care center for adults under Title 14, Subtitle 3 of the 3
	102	+	Health – General Article. 4
155	103
156		-	(1) the amount and duration of the property tax credit under [subsection 8
157		-	(a) of] this section; and 9
	104	+	(b) The amount of the annual credit may not exceed [$3,000] $10,000 or the 5
	105	+	amount of county or municipal corporation property tax attributable to that portion of 6
	106	+	property for which the credit was granted, whichever is less. 7
158	107
159		-	(2) any other provision necessary to carry out the property tax credit under 10
160		-	[subsection (a) of] this section. 11
	108	+	(c) [Except as provided in] SUBJECT TO subsection (b) of this section, THE 8
	109	+	MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING BODY OF a 9
	110	+	county or municipal corporation may provide, by law, for: 10
161	111
162		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 12
163		-	1, 2025, and shall be applicable to all taxable years beginning after June 30, 2025. 13
	112	+	(1) the amount of the property tax credit under this section; 11
	113	+
	114	+	(2) the duration of a property tax credit under this section; and 12
	115	+
	116	+	(3) any other provision necessary to carry out this section. 13
	117	+
	118	+	(d) A credit under this section may not be granted if the real property qualifies 14
	119	+	for a credit under § 9–214 of this subtitle. 15
	120	+
	121	+	9–214. 16
	122	+
	123	+	(a) The Mayor and City Council of Baltimore City or the governing body of a 17
	124	+	county or of a municipal corporation may grant, by law, a property tax credit against the 18
	125	+	county or municipal corporation property tax imposed on that portion of the real property 19
	126	+	on which an improvement is substantially completed [after July 1, 1988] if: 20
	127	+
	128	+	(1) the property is owned by a business having at least 25 employees; and 21
	129	+
	130	+	(2) the improvement contains an area set aside and dedicated exclusively 22
	131	+	for a child care center that is: 23
	132	+
	133	+	(i) registered as a family child care home OR LARGE FA MILY 24
	134	+	CHILD CARE HOME under Title 9.5, Subtitle 3 of the Education Article; or 25
	135	+
	136	+	(ii) licensed as a child care center under Title 9.5, Subtitle 4 of the 26
	137	+	Education Article. 27
	138	+
	139	+	(b) THE AMOUNT OF THE ANN UAL CREDIT MAY NOT E XCEED $10,000 OR 28
	140	+	THE AMOUNT OF COUNTY OR MUNICIPAL CORPORATION PROPERTY TAX 29
	141	+	ATTRIBUTABLE TO THAT PORTION OF PROPERTY FOR WHICH THE CREDIT WAS 30
	142	+	GRANTED, WHICHEVER IS LESS . 31 4 HOUSE BILL 389
164	143
165	144
166	145
167		-	Approved:
168		-	________________________________________________________________________________
169		-	Governor.
170		-	________________________________________________________________________________
171		-	Speaker of the House of Delegates.
172		-	________________________________________________________________________________
173		-	President of the Senate.
	146	+	(C) [The] SUBJECT TO SUBSECTION (B) OF THIS SECTION, THE MAYOR AND 1
	147	+	CITY COUNCIL OF BALTIMORE CITY OR THE governing body of a county or of a 2
	148	+	municipal corporation may provide, by law, for: 3
	149	+
	150	+	(1) the amount and duration of the property tax credit under [subsection 4
	151	+	(a) of] this section; and 5
	152	+
	153	+	(2) any other provision necessary to carry out the property tax credit under 6
	154	+	[subsection (a) of] this section. 7
	155	+
	156	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 8
	157	+	1, 2025, and shall be applicable to all taxable years beginning after June 30, 2025. 9