EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*sb0278*
SENATE BILL 278
P1, P6, P4 5lr0759
CF 5lr2402
By: Senators Simonaire, Salling, Jennings, Gallion, Mautz, and Bailey
Introduced and read first time: January 10, 2025
Assigned to: Budget and Taxation and Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Tax Relief and Pensions Equality for Service Members Act 2
FOR the purpose of establishing rules of interpretation related to the uniformed services; 3
altering the rule of interpretation for “veteran”; altering the application of certain 4
provisions of law governing personnel, pensions, and taxation to apply to all 5
uniformed services, rather than only the armed forces; and generally relating to 6
veterans and uniformed services. 7
BY adding to 8
Article – General Provisions 9
Section 1–101.1, 1–101.2, 1–103.1, 1–114.1, 1–114.2, and 1–116 10
Annotated Code of Maryland 11
(2019 Replacement Volume and 2024 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – General Provisions 14
Section 1–117 15
Annotated Code of Maryland 16
(2019 Replacement Volume and 2024 Supplement) 17
BY repealing and reenacting, without amendments, 18
Article – Local Government 19
Section 1–101(a) 20
Annotated Code of Maryland 21
(2013 Volume and 2024 Supplement) 22
BY adding to 23
Article – Local Government 24
Section 1–101(k) and (l) 25
Annotated Code of Maryland 26
(2013 Volume and 2024 Supplement) 27 2 SENATE BILL 278
BY repealing and reenacting, with amendments, 1
Article – Local Government 2
Section 1–203 and 1–204(a) and (d) 3
Annotated Code of Maryland 4
(2013 Volume and 2024 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – State Government 7
Section 9–901 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2024 Supplement) 10
BY repealing and reenacting, without amendments, 11
Article – State Personnel and Pensions 12
Section 1–101(a), 9–1104(a), and 38–101(a) 13
Annotated Code of Maryland 14
(2024 Replacement Volume and 2024 Supplement) 15
BY adding to 16
Article – State Personnel and Pensions 17
Section 1–101(a–1), (a–2), (b–1), (h–1), (l–1), (r), and (s) and 38–101(b–1) and (e–1) 18
Annotated Code of Maryland 19
(2024 Replacement Volume and 2024 Supplement) 20
BY repealing and reenacting, with amendments, 21
Article – State Personnel and Pensions 22
Section 2–701, 2–703, 2–704, 2–707(a), 7–203(b)(1)(i), 7–207(c), 9–1104(b)(3), 23
38–101(d), 38–103(d), and 38–104(c) 24
Annotated Code of Maryland 25
(2024 Replacement Volume and 2024 Supplement) 26
BY repealing and reenacting, without amendments, 27
Article – Tax – General 28
Section 1–101(a), 10–101(a), 10–207(a), and 10–208(a) and (i–1)(2) and (4) 29
Annotated Code of Maryland 30
(2022 Replacement Volume and 2024 Supplement) 31
BY adding to 32
Article – Tax – General 33
Section 1–101(r–1), (x), and (y) and 10–101(a–1) 34
Annotated Code of Maryland 35
(2022 Replacement Volume and 2024 Supplement) 36
BY repealing and reenacting, with amendments, 37
Article – Tax – General 38 SENATE BILL 278 3
Section 10–207(p) and (q), 10–208(i–1)(3)(iii)3., 11–204(a)(8), 11–206(d)(2), and 1
13–908(b) 2
Annotated Code of Maryland 3
(2022 Replacement Volume and 2024 Supplement) 4
BY repealing and reenacting, without amendments, 5
Article – Tax – Property 6
Section 1–101(a), 7–208(a)(1) and (b), 9–102(a)(1), (b), and (h), 9–258(a)(1), (2), and 7
(3)(v) and (b), 9–265(b), 10–204(a) and (b)(1) and (3), and 10–204.2(a) and 8
(b)(1) and (3) 9
Annotated Code of Maryland 10
(2019 Replacement Volume and 2024 Supplement) 11
BY adding to 12
Article – Tax – Property 13
Section 1–101(a–1), (a–2), (hh–1), (jj–1), (oo–1), and (rr) 14
Annotated Code of Maryland 15
(2019 Replacement Volume and 2024 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Tax – Property 18
Section 7–208(a)(2) and (3), 9–102(a)(9)(ii)3., 9–219(a)(2)(iii), 9–258(a)(3)(ii) through 19
(iv), 9–265(a), 10–204(b)(2)(ii)3., and 10–204.2(b)(2)(ii)3. 20
Annotated Code of Maryland 21
(2019 Replacement Volume and 2024 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – General Provisions 25
1–101.1. 26
“ACTIVE DUTY” HAS THE MEANING STAT ED IN § 9–901 OF THE STATE 27
GOVERNMENT ARTICLE. 28
1–101.2. 29
“ACTIVE SERVICE MEMBER ” HAS THE MEANING STAT ED IN § 9–901 OF THE 30
STATE GOVERNMENT ARTICLE. 31
1–103.1. 32
“ARMED FORCES ” HAS THE MEANING STAT ED IN § 9–901 OF THE STATE 33
GOVERNMENT ARTICLE. 34
4 SENATE BILL 278
1–114.1. 1
“RESERVE COMPONENT ” HAS THE MEANING STAT ED IN § 9–901 OF THE STATE 2
GOVERNMENT ARTICLE. 3
1–114.2. 4
“SERVICE MEMBER ” HAS THE MEANING STAT ED IN § 9–901 OF THE STATE 5
GOVERNMENT ARTICLE. 6
1–116. 7
“UNIFORMED SERVICES ” HAS THE MEANING STAT ED IN § 9–901 OF THE STATE 8
GOVERNMENT ARTICLE. 9
1–117. 10
With respect to any State program of benefits, rights, or privileges applicable to a 11
veteran under this Code, “veteran” includes[, if the individual is eligible under 38 U.S.C. § 12
101, a member of the commissioned corps of: 13
(1) the Public Health Service; or 14
(2) the National Oceanic and Atmospheric Administration or its 15
predecessor, the Coast and Geodetic Survey] AN INDIVIDUAL WHO ME ETS THE 16
DEFINITION OF “VETERAN” UNDER § 9–901 OF THE STATE GOVERNMENT ARTICLE. 17
Article – Local Government 18
1–101. 19
(a) In this article the following words have the meanings indicated. 20
(K) “UNIFORMED SERVICES ” HAS THE MEANING STAT ED IN § 9–901 OF THE 21
STATE GOVERNMENT ARTICLE. 22
(L) “VETERAN” HAS THE MEANING STAT ED IN § 9–901 OF THE STATE 23
GOVERNMENT ARTICLE. 24
1–203. 25
(a) This section applies to the following governmental entities: 26
(1) counties; 27
SENATE BILL 278 5
(2) municipalities; 1
(3) bicounty agencies; 2
(4) county boards of education; 3
(5) public corporations; 4
(6) special taxing districts; and 5
(7) other political subdivisions of the State. 6
(b) Each governmental entity shall give its employees who return from [military] 7
service in the [armed forces of the United States] UNIFORMED SERVICES the same 8
reemployment rights as provided for State employees under Title 2, Subtitle 7 of the State 9
Personnel and Pensions Article. 10
1–204. 11
(a) If a municipality, county, or other political subdivision of the State makes 12
appointments to government positions under a civil service or merit system law or 13
ordinance, the unit that provides eligibility lists for appointments shall adopt rules or 14
regulations to grant special credit to [honorably discharged] veterans [of the armed forces 15
of the United States] who have been residents of the State for at least 5 years immediately 16
preceding the date on which the veteran takes a merit system examination. 17
(d) (1) IN THIS SUBSECTION , “HEALTH EMERGENCY ” INCLUDES: 18
(I) A NATIONAL EMERGENCY DECLARED BY THE PRESIDENT OF 19
THE UNITED STATES UNDER THE NATIONAL EMERGENCIES ACT; 20
(II) AN EMERGENCY OR MAJO R DISASTER DECLARED BY THE 21
PRESIDENT OF THE UNITED STATES UNDER THE ROBERT T. STAFFORD DISASTER 22
RELIEF AND EMERGENCY ASSISTANCE ACT; 23
(III) A PUBLIC HEALTH EMER GENCY DECLARED BY TH E 24
SECRETARY OF HEALTH AND HUMAN SERVICES UNDER 42 U.S.C. § 247D; AND 25
(IV) A CATASTROPHIC HEALTH EMERGENCY DEC LARED BY THE 26
GOVERNOR UNDER § 14–3A–02 OF THE PUBLIC SAFETY ARTICLE. 27
(2) The unit may exempt war OR HEALTH EMERGENCY veterans under 28
the age of 55 years from any age limitation or requirement. 29
Article – State Government 30 6 SENATE BILL 278
9–901. 1
(a) In this subtitle the following words have the meanings indicated. 2
(B) “ACTIVE DUTY” HAS THE MEANING STAT ED IN 37 U.S.C. § 101. 3
(C) “ACTIVE SERVICE MEMBER ” MEANS AN INDIVIDUAL WHO IS: 4
(1) AN ACTIVE DUTY MEMBE R OF THE UNIFORMED S ERVICES; OR 5
(2) SERVING IN A RESERVE COMPONENT OF THE UNIFORMED 6
SERVICES ON ACTIVE D UTY ORDERS. 7
(D) “ARMED FORCES ” HAS THE MEANING STAT ED IN 10 U.S.C. § 101. 8
[(b)] (E) “Board” means the Board of Trustees of the Maryland Veterans Trust. 9
[(c)] (F) “Department” means the Department of Veterans and Military 10
Families. 11
(G) “MILITARY FAMILY ” INCLUDES THE SPOUSE AND DEPENDENT 12
CHILDREN OF A SERVIC E MEMBER OR VETERAN RELATED BY BLOOD , MARRIAGE, OR 13
ADOPTION. 14
(H) “RESERVE COMPONENT ” HAS THE MEANING STAT ED IN 37 U.S.C. § 101. 15
[(d)] (I) “Secretary” means the Secretary of Veterans and Military Families. 16
(J) “SERVICE MEMBER ” MEANS AN INDIVIDUAL WHO IS A MEMBER OF: 17
(1) THE UNIFORMED SERVI CES; OR 18
(2) A RESERVE COMPONENT OF THE UNIFORMED SER VICES. 19
[(e)] (K) “Trust” means the Maryland Veterans Trust. 20
(L) “UNIFORMED SERVICE S” HAS THE MEANING STAT ED IN 37 U.S.C. § 101. 21
[(f)] (M) Except as otherwise provided [in this subtitle], “veteran” [means an 22
individual who served on active duty in the armed forces of the United States, other than 23
for training, and was discharged or released under conditions other than dishonorable] HAS 24
THE MEANING STATED I N 38 U.S.C. § 101. 25
Article – State Personnel and Pensions 26 SENATE BILL 278 7
1–101. 1
(a) In this Division I of this article the following words have the meanings 2
indicated. 3
(A–1) “ACTIVE DUTY” HAS THE MEANING STAT ED IN § 9–901 OF THE STATE 4
GOVERNMENT ARTICLE. 5
(A–2) “ACTIVE SERVICE MEMBER ” HAS THE MEANING STAT ED IN § 9–901 OF 6
THE STATE GOVERNMENT ARTICLE. 7
(B–1) “ARMED FORCES” HAS THE MEANING STAT ED IN § 9–901 OF THE STATE 8
GOVERNMENT ARTICLE. 9
(H–1) “MILITARY SERVICE” MEANS: 10
(1) INDUCTION INTO THE ARMED FORCES FOR TRAINING AND 11
SERVICE UNDER THE SELECTIVE TRAINING AND SERVICE ACT OF 1940 OR A 12
SUBSEQUENT ACT OF A SIMILAR NATURE ; 13
(2) MEMBERSHIP IN A RESE RVE COMPONENT : 14
(I) ON ACTIVE DUTY OR OR DERED OR ASSIGNED TO ACTIVE 15
DUTY; OR 16
(II) ON ACTIVE DUTY FOR T RAINING OR INACTIVE DUTY FOR 17
TRAINING THAT INTERR UPTS A MEMBER ’S SERVICE; 18
(3) MEMBERSHIP IN AN ACT IVE COMPONENT OF THE ARMED FORCES ; 19
(4) MEMBERSHIP IN THE MARYLAND NATIONAL GUARD; OR 20
(5) ACTIVE DUTY WITH THE COMMISSIONED CORPS O F THE PUBLIC 21
HEALTH SERVICE, THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION , 22
OR THE COAST AND GEODETIC SURVEY. 23
(L–1) “RESERVE COMPONENT ” HAS THE MEANING STAT ED IN § 9–901 OF THE 24
STATE GOVERNMENT ARTICLE. 25
(R) “UNIFORMED SERVICES ” HAS THE MEANING STAT ED IN § 9–901 OF THE 26
STATE GOVERNMENT ARTICLE. 27
8 SENATE BILL 278
(S) “VETERAN” HAS THE MEANING STAT ED IN § 9–901 OF THE STATE 1
GOVERNMENT ARTICLE. 2
2–701. 3
In this subtitle, “returning veteran”: 4
(1) means an individual who left State employment to perform military 5
service [in the armed forces of the United States] and who seeks reinstatement to State 6
employment; and 7
(2) does not include an individual who left State employment while serving 8
as a temporary employee. 9
2–703. 10
[(a)] A returning veteran [who was inducted into the armed forces] is eligible for 11
reinstatement under this subtitle if the veteran: 12
(1) performed military service of a nature and length that meet the 13
requirements of the Uniformed Services Employment and Reemployment Rights Act of 14
1994, 38 U.S.C. § 4301 et seq., and any subsequent federal law governing reemployment of 15
a returning veteran; AND 16
(2) [received a certificate of satisfactory completion of military service; and 17
(3)] except as otherwise provided in § 2–704 of this subtitle, submits an 18
application for reinstatement within 90 days after the veteran is discharged from [that] 19
military service. 20
[(b) A returning veteran who enlisted in the armed forces is eligible for 21
reinstatement under this subtitle if the veteran: 22
(1) performed military service of a nature and length that meet the 23
requirements of the Uniformed Services Employment and Reemployment Rights Act of 24
1994, 38 U.S.C. § 4301 et seq., and any subsequent federal law governing reemployment of 25
a returning veteran; 26
(2) was released from service under honorable conditions; and 27
(3) except as otherwise provided in § 2–704 of this subtitle, submits an 28
application for reinstatement within 90 days after the end of the enlistment period. 29
(c) A returning veteran who was called to active military duty in the armed forces 30
is eligible for reinstatement under this subtitle if the veteran: 31
SENATE BILL 278 9
(1) performed military service of a nature and length that meet the 1
requirements of the Uniformed Services Employment and Reemployment Rights Act of 2
1994, 38 U.S.C. § 4301 et seq., and any subsequent federal law governing reemployment of 3
a returning veteran; 4
(2) was relieved from active duty under honorable conditions; and 5
(3) except as otherwise provided in § 2–704 of this subtitle, submits an 6
application for reinstatement within 90 days after the veteran is relieved from that duty.] 7
2–704. 8
An otherwise eligible returning veteran who was hospitalized at the time of 9
discharge[, end of enlistment, or relief from active duty] FROM MILITARY SERVIC E may 10
apply for reinstatement if: 11
(1) the application is submitted within 90 days after the returning veteran 12
is discharged from the hospital; and 13
(2) the hospitalization does not last more than 1 year from the date of 14
discharge[, end of enlistment, or relief from active duty] FROM MILITARY SERVIC E. 15
2–707. 16
(a) A member of a reserve component [of the armed forces of the United States] 17
is eligible for the reinstatement rights and benefits specified in §§ 2–705 and 2–706(a), (b), 18
and (c) of this subtitle if the reservist: 19
(1) performed active duty for training of a nature and length that meet the 20
requirements for eligibility under Title 38 U.S.C. § 4301 et seq.; 21
(2) was released from that duty after satisfactory service; and 22
(3) except as provided in subsection (b) of this section, submits an 23
application for reinstatement within 31 days after the reservist was released from that 24
duty. 25
7–203. 26
(b) (1) An appointing authority may select a disabled veteran for a position if: 27
(i) the disabled veteran: 28
1. [served in any branch of the armed forces of the United 29
States] IS A VETERAN; and 30
10 SENATE BILL 278
2. A. is included on a United States [armed forces] 1
UNIFORMED SERVICES permanent disability list with a disability rating of at least 30%; 2
or 3
B. has been rated by the United States Department of 4
Veterans Affairs as having a compensable service–connected disability of at least 30%; 5
7–207. 6
(c) (1) [(i)] In this subsection [the following words have the meanings 7
indicated. 8
(ii) “Eligible], “ELIGIBLE spouse” means an individual who is 9
married to [a full–time] AN active [duty] SERVICE member [of any branch of the uniformed 10
services of the United States]. 11
[(iii) “Eligible veteran” means a veteran of any branch of the 12
uniformed services of the United States who has received an honorable discharge or a 13
certificate of satisfactory completion of service, including the National Guard and the 14
military reserves.] 15
(2) (i) An appointing authority shall apply a credit of 10 points on any 16
selection test for: 17
1. an eligible spouse; 18
2. [an eligible] A veteran; 19
3. the spouse of [an eligible] A veteran who has a service 20
connected disability; or 21
4. the surviving spouse of a deceased [eligible] veteran. 22
(ii) An appointing authority shall apply a credit of two additional 23
points on any selection test for a former prisoner of war. 24
(3) The following applicants are ineligible for a credit under this 25
subsection: 26
(i) a current State employee; and 27
(ii) [an eligible] A veteran who is convicted of a crime after being 28
discharged from or completing military service. 29
9–1104. 30
SENATE BILL 278 11
(a) In this section, “uniformed services” has the meaning stated in 38 U.S.C. § 1
4303 and 20 C.F.R. § 1002.5(o). 2
(b) The Secretary may provide by regulation for leave with pay: 3
(3) up to 30 days for uniformed services training or active uniformed 4
services duty in a reserve [unit of the armed forces] COMPONENT or in the organized 5
militia; 6
38–101. 7
(a) In this subtitle the following words have the meanings indicated. 8
(B–1) “ARMED FORCES” HAS THE MEANING STAT ED IN § 9–901 OF THE STATE 9
GOVERNMENT ARTICLE. 10
(d) “Military service” means: 11
(1) induction into the armed forces [of the United States] for training and 12
service under the Selective Training and Service Act of 1940 or a subsequent act of a similar 13
nature; 14
(2) membership in a reserve component [of the armed forces of the United 15
States]: 16
(i) on active duty or ordered or assigned to active duty; or 17
(ii) on active duty for training or inactive duty for training that 18
interrupts a member’s service; 19
(3) [enlistment into] MEMBERSHIP IN AN ACT IVE COMPONENT OF the 20
armed forces [of the United States]; 21
(4) membership in the Maryland National Guard; or 22
(5) active duty with the commissioned corps of the Public Health Service, 23
the National Oceanic and Atmospheric Administration, or the Coast and Geodetic Survey. 24
(E–1) “RESERVE COMPONENT ” HAS THE MEANING STAT ED IN § 9–901 OF THE 25
STATE GOVERNMENT ARTICLE. 26
38–103. 27
(d) (1) Subject to paragraph (2)(i) of this subsection, a member of a State or 28
local retirement or pension system shall receive service credit for a period of absence from 29
employment while in military service if: 30 12 SENATE BILL 278
(i) the employment of the member under subsection (a)(2) of this 1
section is active or the employee is reinstated as a regular employee on a leave of absence; 2
and 3
(ii) membership in a State or local retirement or pension system is a 4
requirement of employment. 5
(2) (i) For an absence for military service, service credit for the military 6
service may not exceed 5 years. 7
(ii) 1. This subparagraph applies only to a member of a State 8
system. 9
2. Subject to subparagraph (i) of this paragraph and in 10
addition to any service credit received under paragraph (1) of this subsection, a member of 11
[the Maryland National Guard or of] a reserve component [of the armed forces of the United 12
States who has been activated under Title 10 of the United States Code and] who is on 13
OFFICIAL ORDERS FOR active or inactive duty for training that interrupts the member’s 14
service shall receive service credit at the rate of 4 months for each full year for military 15
service, not to exceed a total of 36 months. 16
3. Subject to subparagraph (i) of this paragraph, an 17
individual shall receive service credit at the rate of 4 months for each full year of attendance 18
at a United States service academy that interrupts the member’s employment, not to exceed 19
a total of 16 months. 20
38–104. 21
(c) (1) An individual described in subsection (a) of this section may not receive 22
credit for that military service if the individual receives credit for military service from 23
another retirement system for which retirement benefits have been or will be received by 24
the individual. 25
(2) Paragraph (1) of this subsection does not apply to: 26
(i) credit for military service provided under: 27
1. the Social Security Act; 28
2. the National Railroad Retirement Act; or 29
3. Title 3 or Title 10, Chapter 1223, §§ 12731 through 12737 30
of the United States Code; or 31
(ii) disability payments from a pension or retirement system. 32
SENATE BILL 278 13
(3) (i) Military service credit under this section may not exceed 5 years. 1
(ii) Subject to subparagraph (i) of this paragraph, a member of [the 2
Maryland National Guard or of] a reserve component [of the armed forces of the United 3
States] who has not [been activated under Title 10 of the United States Code] SERVED ON 4
OFFICIAL ACTIVE DUTY ORDERS, shall receive service credit at the rate of 4 months for 5
each full year of service with [the Maryland National Guard or with] a reserve component 6
[of the armed forces of the United States], not to exceed a total of 36 months. 7
(iii) Subject to subparagraph (i) of this paragraph, an individual shall 8
receive service credit at the rate of 4 months for each full year of attendance at a United 9
States service academy OR THE UNIFORMED SERVICES UNIVERSITY, not to exceed a 10
total of 16 months. 11
Article – Tax – General 12
1–101. 13
(a) In this article the following words have the meanings indicated. 14
(R–1) “RESERVE COMPONENT ” HAS THE MEANING STAT ED IN § 9–901 OF THE 15
STATE GOVERNMENT ARTICLE. 16
(X) “UNIFORMED SERVICES ” HAS THE MEANING STAT ED IN § 9–901 OF THE 17
STATE GOVERNMENT ARTICLE. 18
(Y) “VETERAN” HAS THE MEANING STAT ED IN § 9–901 OF THE STATE 19
GOVERNMENT ARTICLE. 20
11–204. 21
(a) The sales and use tax does not apply to: 22
(8) a sale to a bona fide nationally organized and recognized organization 23
of veterans [of the armed forces of the United States] or an auxiliary of the organization or 24
one of its units, if the organization is qualified as tax exempt under § 501(c)(4) or § 25
501(c)(19) of the Internal Revenue Code. 26
11–206. 27
(d) The sales and use tax does not apply to: 28
(2) if the proceeds of the sale are used to support a bona fide nationally 29
organized and recognized organization of veterans [of the armed forces of the United 30 14 SENATE BILL 278
States] or auxiliary of the organization or 1 of its units, a sale of food or meals for 1
consumption only on the premises, served by the organization or auxiliary; 2
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 3
as follows: 4
Article – Tax – General 5
10–101. 6
(a) In this title the following words have the meanings indicated. 7
(A–1) “ACTIVE DUTY” HAS THE MEANING STAT ED IN § 9–901 OF THE STATE 8
GOVERNMENT ARTICLE. 9
10–207. 10
(a) To the extent included in federal adjusted gross income, the amounts under 11
this section are subtracted from the federal adjusted gross income of a resident to determine 12
Maryland adjusted gross income. 13
(p) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 14
MEANINGS INDICATED . 15
(II) “MILITARY PAY” MEANS PAY RECEIVED AS A RESULT OF 16
MILITARY SERVICE . 17
(III) “MILITARY SERVICE ” HAS THE MEANING STAT ED IN 18
SUBSECTION (Q)(1) OF THIS SECTION. 19
(2) The subtraction under subsection (a) of this section includes the first 20
$15,000 of military pay that is: 21
(i) received by an individual who is in active MILITARY service [of 22
any branch of the armed forces]; and 23
(ii) attributable to military service of the individual outside the 24
United States. 25
[(2)] (3) The amount of the subtraction under paragraph [(1)] (2) of this 26
subsection: 27
(i) is reduced dollar for dollar in the amount by which military pay 28
received by the individual exceeds $15,000; and 29
SENATE BILL 278 15
(ii) is reduced to zero if the amount of military pay received by the 1
individual exceeds $30,000. 2
(q) (1) (i) In this subsection the following words have the meanings 3
indicated. 4
(ii) “ARMED FORCES ” HAS THE MEANING STAT ED IN § 9–901 OF 5
THE STATE GOVERNMENT ARTICLE. 6
(III) “Military retirement income” means retirement income, 7
including death benefits, received as a result of military service. 8
[(iii)] (IV) “Military service” means: 9
1. induction into the armed forces [of the United States] for 10
training and service under the Selective Training and Service Act of 1940 or a subsequent 11
act of a similar nature; 12
2. membership in a reserve component [of the armed forces 13
of the United States]; 14
3. membership in an active component of the armed forces 15
[of the United States]; OR 16
4. [membership in the Maryland National Guard; or 17
5.] active duty with the commissioned corps of the Public 18
Health Service, the National Oceanic and Atmospheric Administration, or the Coast and 19
Geodetic Survey. 20
(2) The subtraction under subsection (a) of this section includes: 21
(i) if, on the last day of the taxable year, the individual is under the 22
age of 55 years, the first $12,500 of military retirement income received by an individual 23
during the taxable year; and 24
(ii) if, on the last day of the taxable year, the individual is at least 55 25
years old, the first $20,000 of military retirement income received by an individual during 26
the taxable year. 27
10–208. 28
(a) In addition to the modification under § 10–207 of this subtitle, the amounts 29
under this section are subtracted from the federal adjusted gross income of a resident to 30
determine Maryland adjusted gross income. 31
16 SENATE BILL 278
(i–1) (2) The subtraction under subsection (a) of this section includes an amount 1
equal to the amount specified in paragraph (4) of this subsection if an individual is a 2
qualifying public safety volunteer for the taxable year, as determined under paragraph (3) 3
of this subsection. 4
(3) An individual is a qualifying public safety volunteer for the taxable year 5
eligible for the subtraction modification under this subsection if the individual: 6
(iii) 3. is a member of [the National Guard or other] A reserve 7
component [of the United States armed forces who has been ordered into active military 8
service and] who serves on OFFICIAL active duty [in the armed forces of the United States] 9
ORDERS during the taxable year; or 10
(4) The amount of the subtraction under paragraph (2) of this subsection is 11
equal to $7,000. 12
13–908. 13
(b) (1) IN THIS SUBSECTION, “PUBLIC HEALTH EMERGE NCY” INCLUDES: 14
(I) A NATIONAL EMERGENCY DECLARED BY THE PRESIDENT OF 15
THE UNITED STATES UNDER THE NATIONAL EMERGENCIES ACT; 16
(II) AN EMERGENCY OR MAJO R DISASTER DECLARED BY THE 17
PRESIDENT OF THE UNITED STATES UNDER THE ROBERT T. STAFFORD DISASTER 18
RELIEF AND EMERGENCY ASSISTANCE ACT; 19
(III) A PUBLIC HEALTH EMER GENCY DECLARED BY THE 20
SECRETARY OF HEALTH AND HUMAN SERVICES UNDER 42 U.S.C. § 247D; AND 21
(IV) A CATASTROPHIC HEALT H EMERGENCY DECLARED BY THE 22
GOVERNOR UNDER § 14–3A–02 OF THE PUBLIC SAFETY ARTICLE. 23
[(1)] (2) The income tax imposed under this article shall be abated in the 24
case of any individual: 25
(i) who dies while in active service as a member of the [armed forces 26
of the United States] UNIFORMED SERVICES , if such death occurs while serving in a 27
combat zone OR A PUBLIC HEALTH E MERGENCY RESPONSE AR EA or as a result of 28
wounds, disease, or injury incurred while so serving; or 29
(ii) who dies while a [military] MEMBER OF THE UNIFORMED 30
SERVICES or civilian employee of the United States, if such death occurs as a result of 31
wounds, DISEASE, or injury incurred while the individual was a [military] MEMBER OF 32
THE UNIFORMED SERVICES or civilian employee of the United States and which were 33 SENATE BILL 278 17
incurred outside the United States in A PUBLIC HEALTH EMER GENCY RESPONSE OR a 1
terroristic or military action. 2
[(2)] (3) The abatement of tax shall have the same effect and shall apply 3
to the same taxable years as provided under § 692 of the Internal Revenue Code. 4
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 5
as follows: 6
Article – Tax – Property 7
1–101. 8
(a) In this article the following words have the meanings indicated. 9
(A–1) “ACTIVE DUTY” HAS THE MEANING STAT ED IN § 9–901 OF THE STATE 10
GOVERNMENT ARTICLE. 11
(A–2) “ACTIVE SERVICE MEMBER ” HAS THE MEANING STAT ED IN § 9–901 OF 12
THE STATE GOVERNMENT ARTICLE. 13
(HH–1) “RESERVE COMPONENT ” HAS THE MEANING STAT ED IN § 9–901 14
OF THE STATE GOVERNMENT ARTICLE. 15
(JJ–1) “SERVICE MEMBER ” HAS THE MEANING STAT ED IN § 9–901 OF THE 16
STATE GOVERNMENT ARTICLE. 17
(OO–1) “UNIFORMED SERVICE S” HAS THE MEANING STAT ED IN § 9–901 18
OF THE STATE GOVERNMENT ARTICLE. 19
(RR) “VETERAN” HAS THE MEANING STAT ED IN § 9–901 OF THE STATE 20
GOVERNMENT ARTICLE. 21
7–208. 22
(a) (1) In this section the following words have the meanings indicated. 23
(2) “Disabled active duty service member” means an [individual in active 24
service of the military, naval, or air service as defined in 38 U.S.C. § 101] ACTIVE SERVICE 25
MEMBER who has a service connected physical disability that: 26
(i) is reasonably certain to continue for the life of the service 27
member; and 28
(ii) was not caused or incurred by misconduct of the service member. 29 18 SENATE BILL 278
(3) (i) “Disabled veteran” means an individual who: 1
1. is [honorably discharged or released under honorable 2
circumstances from active military, naval, or air service as defined in 38 U.S.C. § 101] A 3
VETERAN; and 4
2. has been declared by the U.S. Department of Veterans 5
Affairs to have a permanent 100% service connected disability that results from blindness 6
or other disabling cause that: 7
A. is reasonably certain to continue for the life of the veteran; 8
and 9
B. was not caused or incurred by misconduct of the veteran. 10
(ii) “Disabled veteran” includes an individual who qualifies 11
posthumously for a 100% service connected disability. 12
(b) Except as provided in subsection (e) of this section, a dwelling house is exempt 13
from property tax if: 14
(1) the dwelling house is owned by: 15
(i) a disabled active duty service member; 16
(ii) a disabled veteran; 17
(iii) a surviving spouse of an individual who died in the line of duty, 18
if: 19
1. the dwelling house was owned by the individual at the 20
time of the individual’s death; 21
2. the dwelling house was acquired by the surviving spouse 22
within 2 years of the individual’s death, if the individual or the surviving spouse was 23
domiciled in the State as of the date of the individual’s death; or 24
3. the dwelling house was acquired after the surviving 25
spouse qualified for exemption for a former dwelling house under item 1 or 2 of this item, 26
to the extent of the previous exemption; or 27
(iv) a surviving spouse of a disabled veteran who meets the 28
requirements of subsection (c) of this section; and 29
(2) the application requirements of subsection (d) of this section are met. 30
SENATE BILL 278 19
9–102. 1
(a) (1) In this section the following words have the meanings indicated. 2
(9) “Renter” means an individual, who during the calendar year for which 3
the property tax relief under this section is sought, actually occupies a dwelling in which 4
the individual has a leasehold interest and who: 5
(ii) has been found permanently and totally disabled and has 6
qualified for benefits under: 7
3. any federal act for SERVICE members [of the United 8
States armed forces]; or 9
(b) There is a property tax relief program for any renter. 10
(h) (1) The property tax relief that a renter may receive under this section is 11
the assumed property tax on real property less a percentage of the combined income of the 12
renter. 13
(2) The percentage is: 14
(i) 0% of the 1st $4,000 of combined income; 15
(ii) 2.5% of the 2nd $4,000 of combined income; and 16
(iii) 5.5% of the combined income over $8,000. 17
9–219. 18
(a) The Mayor and City Council of Baltimore City or the governing body of a 19
county or of a municipal corporation may grant, by law, a property tax credit against the 20
county or municipal corporation property tax imposed on rental dwellings of owners who 21
provide reduced rents for any tenant who: 22
(2) has been found permanently and totally disabled and has qualified for 23
benefits under: 24
(iii) any federal act for SERVICE members [of the United States 25
armed forces]; or 26
9–258. 27
(a) (1) In this section the following words have the meanings indicated. 28
(2) “Dwelling” has the meaning stated in § 9–105 of this title. 29
20 SENATE BILL 278
(3) “Eligible individual” means: 1
(ii) an individual who is at least 65 years old and is a retired 2
SERVICE member [of the uniformed services of the United States as defined in 10 U.S.C. § 3
101, the military reserves, or the National Guard]; 4
(iii) a surviving spouse, who is at least 65 years old and has not 5
remarried, of a retired SERVICE member [of the uniformed services of the United States 6
as defined in 10 U.S.C. § 101, the military reserves, or the National Guard]; 7
(iv) an individual who: 8
1. is an active duty, retired, or honorably discharged 9
SERVICE member [of the uniformed services of the United States as defined in 10 U.S.C. § 10
101, the military reserves, or the National Guard]; and 11
2. has a service–connected disability as defined in a local law 12
enacted under this section; or 13
(v) a surviving spouse of an individual described under item (iv) of 14
this paragraph who has not remarried. 15
(b) The Mayor and City Council of Baltimore City or the governing body of a 16
county or municipal corporation may grant, by law, a property tax credit under this section 17
against the county or municipal corporation property tax imposed on the dwelling of an 18
eligible individual. 19
9–265. 20
(a) (1) In this section the following words have the meanings indicated. 21
(2) “Disabled veteran” means an individual who: 22
(i) is [honorably discharged or released under honorable 23
circumstances from active military, naval, or air service as defined in 38 U.S.C. § 101] A 24
VETERAN; and 25
(ii) 1. has been declared by the U.S. Department of Veterans 26
Affairs to have a permanent service–connected disability of at least 50% that results from 27
blindness or any other disabling cause that: 28
A. is reasonably certain to continue for the life of the veteran; 29
and 30
B. was not caused or incurred by misconduct of the veteran; 31
or 32 SENATE BILL 278 21
2. has been declared by the U.S. Department of Veterans 1
Affairs to have a nonpermanent service–connected disability of 100% that results from 2
blindness or any other disabling cause that was not caused or incurred by misconduct of 3
the veteran. 4
(3) “Dwelling house”: 5
(i) means real property that is: 6
1. the legal residence of a disabled veteran; and 7
2. occupied by not more than two families; and 8
(ii) includes the lot or curtilage and structures necessary to use the 9
real property as a residence. 10
(b) The Mayor and City Council of Baltimore City or the governing body of a 11
county or municipal corporation may grant, by law, a property tax credit under this section 12
against the county or municipal corporation property tax imposed on a dwelling house if: 13
(1) the dwelling house is owned by a disabled veteran; 14
(2) the disabled veteran’s federal adjusted gross income for the 15
immediately preceding taxable year does not exceed $100,000; and 16
(3) the application requirements of subsection (d) of this section are met. 17
10–204. 18
(a) Notwithstanding Subtitle 1 of this title, the governing body of a county may 19
authorize, by law, a payment deferral of county property tax for residential real property 20
occupied as the principal residence of the owner. 21
(b) An owner is eligible for a payment deferral under subsection (a) of this section 22
if the owner or at least 1 of the owners: 23
(1) has resided in the dwelling for a period of at least 5 consecutive years; 24
(2) (ii) has been found permanently and totally disabled and has 25
qualified for benefits under: 26
3. any federal act for SERVICE members [of the United 27
States armed forces]; or 28
(3) meets the income eligibility requirements determined under subsection 29
(c) of this section. 30 22 SENATE BILL 278
10–204.2. 1
(a) Notwithstanding Subtitle 1 of this title, the governing body of a municipal 2
corporation may authorize, by law, a payment deferral of municipal corporation property 3
tax for residential real property occupied as the principal residence of the owner. 4
(b) An owner is eligible for a payment deferral under subsection (a) of this section 5
if the owner or at least 1 of the owners: 6
(1) has resided in the dwelling for a period of at least 5 consecutive years; 7
(2) (ii) has been found permanently and totally disabled and has 8
qualified for benefits under: 9
3. any federal act for SERVICE members [of the United 10
States armed forces]; or 11
(3) meets the income eligibility requirements determined under subsection 12
(c) of this section. 13
SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 14
applicable to all taxable years beginning after December 31, 2024. 15
SECTION 5. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall be 16
applicable to all taxable years beginning after June 30, 2025. 17
SECTION 6. AND BE IT FURTHER ENACTED, That this Act shall take effect July 18
1, 2025. 19