Maryland 2025 Regular Session

Maryland House Bill HB641 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	hb0641
6	6
7	7	HOUSE BILL 641
8	8	Q1, R2 5lr1147
9	9
10	10	By: Delegate Ruth
11	11	Introduced and read first time: January 23, 2025
12	12	Assigned to: Ways and Means and Appropriations
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	State Property Tax – Transportation Funding 2
19	19	(Transportation Funding Act of 2025) 3
20	20
21	21	FOR the purpose of requiring the Governor, after consultation with the Secretary of 4
22	22	Transportation, to submit each year to the Board of Public Works and the General 5
23	23	Assembly a proposal for a State property tax to support transportation projects and 6
24	24	programs; requiring, on or before a certain date each year, the Board of Public Works 7
25	25	to approve, reject, or modify the proposed State property tax; imposing a State 8
26	26	property tax at the rates and on the classes and subclasses of property that the Board 9
27	27	of Public Works approves; and generally relating to a State property tax to support 10
28	28	transportation projects and programs. 11
29	29
30	30	BY adding to 12
31	31	Article – State Finance and Procurement 13
32	32	Section 7–107.1 14
33	33	Annotated Code of Maryland 15
34	34	(2021 Replacement Volume and 2024 Supplement) 16
35	35
36	36	BY repealing and reenacting, with amendments, 17
37	37	Article – Tax – Property 18
38	38	Section 6–201(a) 19
39	39	Annotated Code of Maryland 20
40	40	(2019 Replacement Volume and 2024 Supplement) 21
41	41
42	42	BY repealing and reenacting, without amendments, 22
43	43	Article – Tax – Property 23
44	44	Section 6–301(a) 24
45	45	Annotated Code of Maryland 25
46	46	(2019 Replacement Volume and 2024 Supplement) 26
47	47	2 HOUSE BILL 641
48	48
49	49
50	50	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
51	51	That the Laws of Maryland read as follows: 2
52	52
53	53	Article – State Finance and Procurement 3
54	54
55	55	7–107.1. 4
56	56
57	57	(A) (1) THE GOVERNOR, AFTER CONSULTATION W ITH THE SECRETARY 5
58	58	OF TRANSPORTATION , SHALL SUBMIT TO THE BOARD OF PUBLIC WORKS AND THE 6
59	59	GENERAL ASSEMBLY WITH THE ANNUAL BUDG ET BILL A PROPOSAL FOR A STATE 7
60	60	PROPERTY TAX ON ASSESSABLE PR OPERTY FOR THE NEXT TAXABLE YEAR TO 8
61	61	SUPPORT TRANSPORTATI ON PROJECTS AND PROG RAMS. 9
62	62
63	63	(2) THE PROPOSAL UNDER PARAGRAPH (1) OF THIS SUBSECTION IS 10
64	64	IN ADDITION TO THE RATES OF STATE TAX CERTIFIED B Y THE BOARD OF PUBLIC 11
65	65	WORKS UNDER § 8–134 OF THIS ARTICLE. 12
66	66
67	67	(3) THE PROPOSAL UNDER PARAGRAPH (1) OF THIS SUBSECTION : 13
68	68
69	69	(I) SHALL INCLUDE : 14
70	70
71	71	1. A REVENUE ESTIMATE, ITEMIZED BY COUNTY , FOR 15
72	72	THE PROPOSED STATE PROPERTY TAX ; AND 16
73	73
74	74	2. INFORMATION ON THE C RITERIA USED TO 17
75	75	DETERMINE ANY STATE PROPERTY TAX RA TES INCLUDED IN THE PROPOSAL; AND 18
76	76
77	77	(II) MAY: 19
78	78
79	79	1. ESTABLISH CLASSES OR SUBCLASSES OF PROPER TY 20
80	80	IN ADDITION TO THE C LASSES ESTABLISHED U NDER § 8–101 OF THE 21
81	81	TAX – PROPERTY ARTICLE; 22
82	82
83	83	2. INCLUDE DIFFERENT TAX RATES FOR DIFFERENT 23
84	84	CLASSES OR SUBCLASSES OF PROPERTY ; AND 24
85	85
86	86	3. ESTABLISH BOUNDARIES , INCLUDING BOUND ARIES 25
87	87	SURROUNDING TRANSPOR TATION PROJECTS OR TRANSPORTATION 26
88	88	INFRASTRUCTURE , WITHIN WHICH DIFFERENT TAX RATES MAY BE IMPOSED ON 27
89	89	DIFFERENT CLASSES OR SUBCL ASSES OF PROPERTY . 28
90	90
91	91	(4) FOR PURPOSE S OF DETERMINING THE STATE PROPERTY TAX 29
92	92	RATES FOR THE PROPOSAL UNDER P ARAGRAPH (1) OF THIS SUBSECTION , THE 30
93	93	GOVERNOR MAY CONSIDER : 31 HOUSE BILL 641 3
94	94
95	95
96	96
97	97	(I) FOR EACH COUNTY , CLASS, SUBCLASS, OR BOUNDED 1
98	98	GEOGRAPHIC AREA FOR WHICH A SEPARATE PRO PERTY TAX RATE IS PR OPOSED: 2
99	99
100	100	1. THE COST TO MAINTAIN EXISTING TRANSPORTAT ION 3
101	101	INFRASTRUCTURE IN A STATE OF GOOD REPAIR WITHIN THE COUNTY , CLASS, 4
102	102	SUBCLASS, OR BOUNDED GEOGRAPHI C AREA; 5
103	103
104	104	2. THE OPERATING COSTS FOR EXISTING 6
105	105	TRANSPORTATION PROGR AMS WITHIN THE COUNTY, CLASS, SUBCLASS, OR 7
106	106	BOUNDED GEOGRAPHIC A REA; 8
107	107
108	108	3. THE TRANSPORTA TION PROJECTS IN THE 9
109	109	CONSOLIDATED TRANSPORTATION PLAN WITHIN THE COUNT Y, CLASS, SUBCLASS, 10
110	110	OR BOUNDED GEOGRAPHI C AREA; AND 11
111	111
112	112	4. THE TRANSPORTATION P RIORITIES IDENTIFIED IN 12
113	113	THE COUNTY TRANSPORT ATION PRIORITY LETTE R FOR THE COUNTY WITHIN WHICH 13
114	114	A CLASS, SUBCLASS, OR BOUNDED GEOGRAPHI C AREA IS LOCATED ; 14
115	115
116	116	(II) THE POTENTIAL DISPAR ATE IMPACT OR 15
117	117	DISPROPORTIONATE BUR DEN ON PROPERTY OWNE RS WITHIN A COUNTY , CLASS, 16
118	118	SUBCLASS, OR BOUNDED GEOGRAPHI C AREA FOR WHICH A S EPARATE PROPERTY 17
119	119	TAX RATE IS PROPOSED ; AND 18
120	120
121	121	(III) THE POTENTIAL ENVIRO NMENTAL OR ECONOMIC BENEFITS 19
122	122	OF A TRANSPORTATION PROJE CT PROPOSED TO BE FUNDE D IN A COUNTY, CLASS, 20
123	123	SUBCLASS, OR BOUNDED GEOGRAPHI C AREA FOR WHICH A S EPARATE PROPERTY 21
124	124	TAX RATE IS PROPOSED . 22
125	125
126	126	(B) (1) ON OR BEFORE FEBRUARY 15 EACH YEAR, THE BOARD OF PUBLIC 23
127	127	WORKS SHALL APPROVE , REJECT, OR MODIFY THE PROPOS ED STATE PROPERTY 24
128	128	TAX UNDER SUBSECTION (A) OF THIS SECTION. 25
129	129
130	130	(2) IF THE BOARD OF PUBLIC WORKS APPROVES OR MOD IFIES AND 26
131	131	APPROVES THE STATE PROPERTY TAX UN DER PARAGRAPH (1) OF THIS SUBSECTION, 27
132	132	THE PROPERTY TAX SHA LL BE: 28
133	133
134	134	(I) LEVIED IN THE SAME M ANNER, ON THE SAME ASSESSME NTS, 29
135	135	FOR THE SAME PERIOD , AND AS OF THE SAME D ATE OF FINALITY AS A RE 30
136	136	PRESCRIBED FOR PROPE RTY TAX PURPOSES FOR THE STATE; AND 31
137	137	32 4 HOUSE BILL 641
138	138
139	139
140	140	(II) COLLECTED AND SECURE D IN THE SAME MANNER AS THE 1
141	141	COUNTY PROPERTY TAXE S AND SHALL BE SUBJE CT TO THE SAME PENAL TIES AND 2
142	142	THE SAME PROCEDURE , SALE, AND LIEN PRIORITY IN CASE OF DELINQUENCY AS 3
143	143	PROVIDED FOR THE COU NTY PROPERTY TAXES . 4
144	144
145	145	(C) THE ESTIMATED REVENUE FR OM THE PROPOSAL UNDER SUBSE CTION 5
146	146	(A) OF THIS SECTION AND THE STATE PROPERTY TAX APPROVED OR MODI FIED AND 6
147	147	APPROVED BY THE BOARD OF PUBLIC WORKS UNDER SUBSECTIO N (B) OF THIS 7
148	148	SECTION MAY NOT : 8
149	149
150	150	(1) EXCEED THE ESTIMATED REVENUE ATTRIBUTABLE TO THE RATE 9
151	151	OF STATE TAX CERTIFIED B Y THE BOARD OF PUBLIC WORKS UNDER § 8–134 OF 10
152	152	THIS ARTICLE; OR 11
153	153
154	154	(2) RESULT IN PROPERTIES IN A SING LE COUNTY PAYING MOR E THAN 12
155	155	25% OF THE ESTIMATED TOT AL ADDITIONAL REVENU E ATTRIBUTABLE TO TH E 13
156	156	STATE PROPERTY TAX PROPOSED UN DER SUBSECTION (A) OF THIS SECTION OR 14
157	157	APPROVED OR MODIFIED AND APPROVED BY THE BOARD OF PUBLIC WORKS UNDER 15
158	158	SUBSECTION (B) OF THIS SECTION. 16
159	159
160	160	Article – Tax – Property 17
161	161
162	162	6–201. 18
163	163
164	164	(a) (1) Except as otherwise provided in this article, the State may impose State 19
165	165	property tax on the assessment of property that is subject to the State property tax. 20
166	166
167	167	(2) (I) IN ADDITION TO THE STATE PROPERTY TAX AUTHORIZED 21
168	168	UNDER PARAGRAPH (1) OF THIS SUBSECTION , THERE IS A STATE PROPERTY TAX ON 22
169	169	THE ASSESSMENT OF PR OPERTY THAT IS SUBJECT TO THE STATE PROPERTY TAX AT 23
170	170	THE RATES AND ON THE CLASSES OR SUBCLASSE S OF PROPERTY THAT T HE BOARD 24
171	171	OF PUBLIC WORKS APPROVES UNDER § 7–107.1 OF THE STATE FINANCE AND 25
172	172	PROCUREMENT ARTICLE TO SUPPORT TRANSPORT ATION PROJECTS AND 26
173	173	PROGRAMS. 27
174	174
175	175	(II) THE COMPTROLLER SHALL DISTRIBUTE THE REVEN UE 28
176	176	FROM THE STATE PROPERTY TAX IM POSED UNDER THIS PAR AGRAPH TO THE 29
177	177	TRANSPORTATION TRUST FUND ESTABLISHED UNDE R § 3–216 OF THE 30
178	178	TRANSPORTATION ARTICLE. 31
179	179
180	180	6–301. 32
181	181	HOUSE BILL 641 5
182	182
183	183
184	184	(a) Except as provided in subsection (b) of this section, the Board of Public Works 1
185	185	annually shall set the rates for State property tax for the next taxable year as authorized 2
186	186	by the General Assembly. 3
187	187
188	188	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 4
189	189	1, 2025, and shall be applicable to all taxable years beginning after June 30, 2026. 5