EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0641*
HOUSE BILL 641
Q1, R2 5lr1147
By: Delegate Ruth
Introduced and read first time: January 23, 2025
Assigned to: Ways and Means and Appropriations
A BILL ENTITLED
AN ACT concerning 1
State Property Tax – Transportation Funding 2
(Transportation Funding Act of 2025) 3
FOR the purpose of requiring the Governor, after consultation with the Secretary of 4
Transportation, to submit each year to the Board of Public Works and the General 5
Assembly a proposal for a State property tax to support transportation projects and 6
programs; requiring, on or before a certain date each year, the Board of Public Works 7
to approve, reject, or modify the proposed State property tax; imposing a State 8
property tax at the rates and on the classes and subclasses of property that the Board 9
of Public Works approves; and generally relating to a State property tax to support 10
transportation projects and programs. 11
BY adding to 12
Article – State Finance and Procurement 13
Section 7–107.1 14
Annotated Code of Maryland 15
(2021 Replacement Volume and 2024 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Tax – Property 18
Section 6–201(a) 19
Annotated Code of Maryland 20
(2019 Replacement Volume and 2024 Supplement) 21
BY repealing and reenacting, without amendments, 22
Article – Tax – Property 23
Section 6–301(a) 24
Annotated Code of Maryland 25
(2019 Replacement Volume and 2024 Supplement) 26
2 HOUSE BILL 641
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – State Finance and Procurement 3
7–107.1. 4
(A) (1) THE GOVERNOR, AFTER CONSULTATION W ITH THE SECRETARY 5
OF TRANSPORTATION , SHALL SUBMIT TO THE BOARD OF PUBLIC WORKS AND THE 6
GENERAL ASSEMBLY WITH THE ANNUAL BUDG ET BILL A PROPOSAL FOR A STATE 7
PROPERTY TAX ON ASSESSABLE PR OPERTY FOR THE NEXT TAXABLE YEAR TO 8
SUPPORT TRANSPORTATI ON PROJECTS AND PROG RAMS. 9
(2) THE PROPOSAL UNDER PARAGRAPH (1) OF THIS SUBSECTION IS 10
IN ADDITION TO THE RATES OF STATE TAX CERTIFIED B Y THE BOARD OF PUBLIC 11
WORKS UNDER § 8–134 OF THIS ARTICLE. 12
(3) THE PROPOSAL UNDER PARAGRAPH (1) OF THIS SUBSECTION : 13
(I) SHALL INCLUDE : 14
1. A REVENUE ESTIMATE, ITEMIZED BY COUNTY , FOR 15
THE PROPOSED STATE PROPERTY TAX ; AND 16
2. INFORMATION ON THE C RITERIA USED TO 17
DETERMINE ANY STATE PROPERTY TAX RA TES INCLUDED IN THE PROPOSAL; AND 18
(II) MAY: 19
1. ESTABLISH CLASSES OR SUBCLASSES OF PROPER TY 20
IN ADDITION TO THE C LASSES ESTABLISHED U NDER § 8–101 OF THE 21
TAX – PROPERTY ARTICLE; 22
2. INCLUDE DIFFERENT TAX RATES FOR DIFFERENT 23
CLASSES OR SUBCLASSES OF PROPERTY ; AND 24
3. ESTABLISH BOUNDARIES , INCLUDING BOUND ARIES 25
SURROUNDING TRANSPOR TATION PROJECTS OR TRANSPORTATION 26
INFRASTRUCTURE , WITHIN WHICH DIFFERENT TAX RATES MAY BE IMPOSED ON 27
DIFFERENT CLASSES OR SUBCL ASSES OF PROPERTY . 28
(4) FOR PURPOSE S OF DETERMINING THE STATE PROPERTY TAX 29
RATES FOR THE PROPOSAL UNDER P ARAGRAPH (1) OF THIS SUBSECTION , THE 30
GOVERNOR MAY CONSIDER : 31 HOUSE BILL 641 3
(I) FOR EACH COUNTY , CLASS, SUBCLASS, OR BOUNDED 1
GEOGRAPHIC AREA FOR WHICH A SEPARATE PRO PERTY TAX RATE IS PR OPOSED: 2
1. THE COST TO MAINTAIN EXISTING TRANSPORTAT ION 3
INFRASTRUCTURE IN A STATE OF GOOD REPAIR WITHIN THE COUNTY , CLASS, 4
SUBCLASS, OR BOUNDED GEOGRAPHI C AREA; 5
2. THE OPERATING COSTS FOR EXISTING 6
TRANSPORTATION PROGR AMS WITHIN THE COUNTY, CLASS, SUBCLASS, OR 7
BOUNDED GEOGRAPHIC A REA; 8
3. THE TRANSPORTA TION PROJECTS IN THE 9
CONSOLIDATED TRANSPORTATION PLAN WITHIN THE COUNT Y, CLASS, SUBCLASS, 10
OR BOUNDED GEOGRAPHI C AREA; AND 11
4. THE TRANSPORTATION P RIORITIES IDENTIFIED IN 12
THE COUNTY TRANSPORT ATION PRIORITY LETTE R FOR THE COUNTY WITHIN WHICH 13
A CLASS, SUBCLASS, OR BOUNDED GEOGRAPHI C AREA IS LOCATED ; 14
(II) THE POTENTIAL DISPAR ATE IMPACT OR 15
DISPROPORTIONATE BUR DEN ON PROPERTY OWNE RS WITHIN A COUNTY , CLASS, 16
SUBCLASS, OR BOUNDED GEOGRAPHI C AREA FOR WHICH A S EPARATE PROPERTY 17
TAX RATE IS PROPOSED ; AND 18
(III) THE POTENTIAL ENVIRO NMENTAL OR ECONOMIC BENEFITS 19
OF A TRANSPORTATION PROJE CT PROPOSED TO BE FUNDE D IN A COUNTY, CLASS, 20
SUBCLASS, OR BOUNDED GEOGRAPHI C AREA FOR WHICH A S EPARATE PROPERTY 21
TAX RATE IS PROPOSED . 22
(B) (1) ON OR BEFORE FEBRUARY 15 EACH YEAR, THE BOARD OF PUBLIC 23
WORKS SHALL APPROVE , REJECT, OR MODIFY THE PROPOS ED STATE PROPERTY 24
TAX UNDER SUBSECTION (A) OF THIS SECTION. 25
(2) IF THE BOARD OF PUBLIC WORKS APPROVES OR MOD IFIES AND 26
APPROVES THE STATE PROPERTY TAX UN DER PARAGRAPH (1) OF THIS SUBSECTION, 27
THE PROPERTY TAX SHA LL BE: 28
(I) LEVIED IN THE SAME M ANNER, ON THE SAME ASSESSME NTS, 29
FOR THE SAME PERIOD , AND AS OF THE SAME D ATE OF FINALITY AS A RE 30
PRESCRIBED FOR PROPE RTY TAX PURPOSES FOR THE STATE; AND 31
32 4 HOUSE BILL 641
(II) COLLECTED AND SECURE D IN THE SAME MANNER AS THE 1
COUNTY PROPERTY TAXE S AND SHALL BE SUBJE CT TO THE SAME PENAL TIES AND 2
THE SAME PROCEDURE , SALE, AND LIEN PRIORITY IN CASE OF DELINQUENCY AS 3
PROVIDED FOR THE COU NTY PROPERTY TAXES . 4
(C) THE ESTIMATED REVENUE FR OM THE PROPOSAL UNDER SUBSE CTION 5
(A) OF THIS SECTION AND THE STATE PROPERTY TAX APPROVED OR MODI FIED AND 6
APPROVED BY THE BOARD OF PUBLIC WORKS UNDER SUBSECTIO N (B) OF THIS 7
SECTION MAY NOT : 8
(1) EXCEED THE ESTIMATED REVENUE ATTRIBUTABLE TO THE RATE 9
OF STATE TAX CERTIFIED B Y THE BOARD OF PUBLIC WORKS UNDER § 8–134 OF 10
THIS ARTICLE; OR 11
(2) RESULT IN PROPERTIES IN A SING LE COUNTY PAYING MOR E THAN 12
25% OF THE ESTIMATED TOT AL ADDITIONAL REVENU E ATTRIBUTABLE TO TH E 13
STATE PROPERTY TAX PROPOSED UN DER SUBSECTION (A) OF THIS SECTION OR 14
APPROVED OR MODIFIED AND APPROVED BY THE BOARD OF PUBLIC WORKS UNDER 15
SUBSECTION (B) OF THIS SECTION. 16
Article – Tax – Property 17
6–201. 18
(a) (1) Except as otherwise provided in this article, the State may impose State 19
property tax on the assessment of property that is subject to the State property tax. 20
(2) (I) IN ADDITION TO THE STATE PROPERTY TAX AUTHORIZED 21
UNDER PARAGRAPH (1) OF THIS SUBSECTION , THERE IS A STATE PROPERTY TAX ON 22
THE ASSESSMENT OF PR OPERTY THAT IS SUBJECT TO THE STATE PROPERTY TAX AT 23
THE RATES AND ON THE CLASSES OR SUBCLASSE S OF PROPERTY THAT T HE BOARD 24
OF PUBLIC WORKS APPROVES UNDER § 7–107.1 OF THE STATE FINANCE AND 25
PROCUREMENT ARTICLE TO SUPPORT TRANSPORT ATION PROJECTS AND 26
PROGRAMS. 27
(II) THE COMPTROLLER SHALL DISTRIBUTE THE REVEN UE 28
FROM THE STATE PROPERTY TAX IM POSED UNDER THIS PAR AGRAPH TO THE 29
TRANSPORTATION TRUST FUND ESTABLISHED UNDE R § 3–216 OF THE 30
TRANSPORTATION ARTICLE. 31
6–301. 32
HOUSE BILL 641 5
(a) Except as provided in subsection (b) of this section, the Board of Public Works 1
annually shall set the rates for State property tax for the next taxable year as authorized 2
by the General Assembly. 3
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 4
1, 2025, and shall be applicable to all taxable years beginning after June 30, 2026. 5