Maryland 2025 Regular Session

Maryland Senate Bill SB516 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		sb0516
9	6
10	7		SENATE BILL 516
11	8		Q1, O4 5lr1755
12	9		CF HB 389
13		-	By: Senator King Senators King, Benson, Hettleman, M. Jackson, Lewis Young,
14		-	McCray, Salling, and Zucker
	10	+	By: Senator King
15	11		Introduced and read first time: January 23, 2025
16	12		Assigned to: Budget and Taxation
17		-	Committee Report: Favorable with amendments
18		-	Senate action: Adopted
19		-	Read second time: February 21, 2025
20	13
21		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
22	15
23	16		AN ACT concerning 1
24	17
25	18		Property Tax – Day Care Centers, Child Care Homes, and Child Care Centers 2
26	19
27	20		FOR the purpose of exempting personal property used in connection with certain large 3
28	21		family child care homes from valuation and taxation; repealing a requirement that 4
29	22		certain real property improvements to day care centers or child care centers be 5
30	23		completed after certain dates in order to be eligible for certain property tax credits; 6
31	24		authorizing the Mayor and City Council of Baltimore City or the governing body of a 7
32	25		county or a municipal corporation to grant, by law, a property tax credit against the 8
33	26		real property tax owed on the portion of real property used for certain large family 9
34	27		child care homes; increasing the maximum amount of a property tax credit that may 10
35	28		be granted for certain child care homes, child care centers, and day care centers; 11
36	29		establishing the maximum amount of a property tax credit that may be granted for 12
37	30		certain child care homes and child care centers; and generally relating to property 13
38	31		tax credits and exemptions for day care centers, child care homes, and child care 14
39	32		centers. 15
40	33
41	34		BY repealing and reenacting, with amendments, 16
42	35		Article – Tax – Property 17
43	36		Section 7–227, 9–213, and 9–214 18
44	37		Annotated Code of Maryland 19
45	38		(2019 Replacement Volume and 2024 Supplement) 20
46	39
47	40		SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
48		-	That the Laws of Maryland read as follows: 22 2 SENATE BILL 516
	41	+	That the Laws of Maryland read as follows: 22
	42	+
	43	+	Article – Tax – Property 23
	44	+
	45	+	7–227. 24
	46	+	2 SENATE BILL 516
	47	+
	48	+
	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	+
	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
	55	+
	56	+	(1) owned by an individual; 6
	57	+
	58	+	(2) located at the individual’s place of residence; and 7
	59	+
	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	+
	64	+	(c) (1) Notwithstanding subsection (a) of this section, personal property is not 11
	65	+	subject to valuation or to property tax if: 12
	66	+
	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
	70	+
	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
	73	+
	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	+
	77	+	(i) collect personal property information from the individual; or 20
	78	+
	79	+	(ii) require the individual to submit a personal property tax return. 21
	80	+
	81	+	9–213. 22
	82	+
	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
	89	+
	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
	92	+
	93	+	(2) licensed as a child care center under Title 9.5, Subtitle 4 of the 31
	94	+	Education Article; 32 SENATE BILL 516 3
49	95
50	96
51	97
52		-	Article – Tax – Property 1
	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
53	100
54		-	7–227. 2
	101	+	(4) licensed as a day care center for adults under Title 14, Subtitle 3 of the 3
	102	+	Health – General Article. 4
55	103
56		-	(a) ~~Except for personal property used in connection with a business~~, ~~occupation~~, 3
57		-	or ~~profession, personal~~ property ~~owned by an individual and located at the individual’s 4~~
58		-	~~place of residence~~ is ~~not subject to valuation or to property tax~~. 5
	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
59	107
60		-	(b) Notwithstanding subsection (a) of this section, personal property is not subject 6
61		-	to valuation or to property tax if the personal property is: 7
	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
62	111
63		-	(1) ~~owned by an individual~~; 8
	112	+	(1) the amount of the property tax credit under this section; 11
64	113
65		-	(2) ~~located at~~ the ~~individual’s place~~ of ~~residence~~; and 9
	114	+	(2) the duration of a property tax credit under this section; and 12
66	115
67		-	(3) used in connection with a family child care home OR LARGE FAMILY 10
68		-	CHILD CARE HOME that is registered under [Title 5, Subtitle 5, Part V of the Family Law 11
69		-	Article] TITLE 9.5, SUBTITLE 3 OF THE EDUCATION ARTICLE. 12
	116	+	(3) any other provision necessary to carry out this section. 13
70	117
71		-	(c) ~~(1) Notwithstanding subsection (a) of~~ this section~~, personal~~ property ~~is not 13~~
72		-	~~subject to valuation or to property tax if:~~ 14
	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
73	120
74		-	(i) the personal property is owned by an individual and is used in 15
75		-	connection with a business, occupation, or profession that is located at the individual’s 16
76		-	principal residence; and 17
	121	+	9–214. 16
77	122
78		-	(ii) the sum total of the personal property, excluding vehicles exempt 18
79		-	under § 7–230 of this subtitle, had a total original cost of less than $20,000. 19
	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
80	127
81		-	(2) If the individual attests to owning a sum total of personal property with 20
82		-	an original cost of less than $20,000, the Department may not: 21
	128	+	(1) the property is owned by a business having at least 25 employees; and 21
83	129
84		-	(i) collect personal property information from the individual; or 22
	130	+	(2) the improvement contains an area set aside and dedicated exclusively 22
	131	+	for a child care center that is: 23
85	132
86		-	(ii) require the individual to submit a personal property tax return. 23
	133	+	(i) registered as a family child care home OR LARGE FAMILY 24
	134	+	CHILD CARE HOME under Title 9.5, Subtitle 3 of the Education Article; or 25
87	135
88		-	9–213. 24
	136	+	(ii) licensed as a child care center under Title 9.5, Subtitle 4 of the 26
	137	+	Education Article. 27
89	138
90		-	(a) The Mayor and City Council of Baltimore City or the governing body of a 25
91		-	county or of a municipal corporation may grant, by law, a property tax credit against the 26
92		-	county or municipal corporation property tax imposed on that portion of real property, 27
93		-	including any improvement, that [is substantially completed after July 1, 1987, if that 28
94		-	portion of the improved property] contains an area set aside and dedicated exclusively for 29
95		-	a day care center that is: 30
96		-	SENATE BILL 516 3
97		-
98		-
99		-	(1) registered as a family child care home OR LARGE FAMILY CHIL D CARE 1
100		-	HOME under Title 9.5, Subtitle 3 of the Education Article; 2
101		-
102		-	(2) licensed as a child care center under Title 9.5, Subtitle 4 of the 3
103		-	Education Article; 4
104		-
105		-	(3) licensed as a day care center for the elderly under Title 14, Subtitle 2 of 5
106		-	the Health – General Article; or 6
107		-
108		-	(4) licensed as a day care center for adults under Title 14, Subtitle 3 of the 7
109		-	Health – General Article. 8
110		-
111		-	(b) The amount of the annual credit may not exceed [$3,000] $10,000 or the 9
112		-	amount of county or municipal corporation property tax attributable to that portion of 10
113		-	property for which the credit was granted, whichever is less. 11
114		-
115		-	(c) [Except as provided in] SUBJECT TO subsection (b) of this section, THE 12
116		-	MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING BODY OF a 13
117		-	county or municipal corporation may provide, by law, for: 14
118		-
119		-	(1) the amount of the property tax credit under this section; 15
120		-
121		-	(2) the duration of a property tax credit under this section; and 16
122		-
123		-	(3) any other provision necessary to carry out this section. 17
124		-
125		-	(d) A credit under this section may not be granted if the real property qualifies 18
126		-	for a credit under § 9–214 of this subtitle. 19
127		-
128		-	9–214. 20
129		-
130		-	(a) The Mayor and City Council of Baltimore City or the governing body of a 21
131		-	county or of a municipal corporation may grant, by law, a property tax credit against the 22
132		-	county or municipal corporation property tax imposed on that portion of the real property 23
133		-	on which an improvement is substantially completed [after July 1, 1988] if: 24
134		-
135		-	(1) the property is owned by a business having at least 25 employees; and 25
136		-
137		-	(2) the improvement contains an area set aside and dedicated exclusively 26
138		-	for a child care center that is: 27
139		-
140		-	(i) registered as a family child care home OR LARGE FAMILY 28
141		-	CHILD CARE HOME under Title 9.5, Subtitle 3 of the Education Article; or 29
142		-
143		-	(ii) licensed as a child care center under Title 9.5, Subtitle 4 of the 30
144		-	Education Article. 31 4 SENATE BILL 516
	139	+	(b) THE AMOUNT OF THE ANNUAL CREDIT MAY NO T EXCEED $10,000 OR 28
	140	+	THE AMOUNT OF COUNTY OR MUNICIPAL CORPORA TION PROPERTY TAX 29
	141	+	ATTRIBUTABLE TO THAT PORTION OF PROPERTY FOR WHICH THE CREDIT WAS 30
	142	+	GRANTED, WHICHEVER IS LESS . 31 4 SENATE BILL 516
145	143
146	144
147	145
148		-	(b) THE AMOUNT OF THE ANN UAL CREDIT MAY NOT E XCEED $10,000 OR 1
149		-	THE AMOUNT OF COUNTY OR MUNICIPAL CORPORA TION PROPERTY TAX 2
150		-	ATTRIBUTABLE TO THAT PORTION OF PROPERTY FOR WHICH THE CREDIT WAS 3
151		-	GRANTED, WHICHEVER IS LESS . 4
	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
152	149
153		-	(C) [The] SUBJECT TO SUBSECTION (B) OF THIS SECTION, THE MAYOR AND 5
154		-	CITY COUNCIL OF BALTIMORE CITY OR THE governing body of a county or of a 6
155		-	municipal corporation may provide, by law, for: 7
	150	+	(1) the amount and duration of the property tax credit under [subsection 4
	151	+	(a) of] this section; and 5
156	152
157		-	(1) ~~the amount and duration of~~ the property tax credit under ~~[subsection 8~~
158		-	(a) of] this section~~; and 9~~
	153	+	(2) any other provision necessary to carry out the property tax credit under 6
	154	+	[subsection (a) of] this section. 7
159	155
160		-	(2) any other provision necessary to carry out the property tax credit under 10
161		-	[subsection (a) of] this section. 11
162		-
163		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 12
164		-	1, 2025, and shall be applicable to all taxable years beginning after June 30, 2025. 13
165		-
166		-
167		-
168		-
169		-	Approved:
170		-	________________________________________________________________________________
171		-	Governor.
172		-	________________________________________________________________________________
173		-	President of the Senate.
174		-	________________________________________________________________________________
175		-	Speaker of the House of Delegates.
	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