EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
Italics indicate opposite chamber/conference committee amendments.
*sb0550*
SENATE BILL 550
Q2 (5lr1852)
ENROLLED BILL
— Budget and Taxation/Ways and Means —
Introduced by Senators McCray and Hayes
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at _________________ _______ o’clock, ________M.
______________________________________________
President.
CHAPTER ______
AN ACT concerning 1
Baltimore City – Property Tax – Authority to Establish a Subclass and Special 2
Rate for Impose on Property No Longer Used for Nonprofit Purposes Vacant 3
and Abandoned Property Owned by Nonprofit Organizations 4
FOR the purpose of authorizing the Mayor and City Council of Baltimore City to establish, 5
by law, a subclass of real property consisting of certain property that is owned by a 6
nonprofit organization but no longer used for the purpose for which the nonprofit 7
organization was established that has been vacant and has not been significantly 8
improved for a certain period of years and to set a special property tax rate for that 9
property; and generally relating to a special property tax rate for vacant property 10
that is owned by a nonprofit organization impose, by law, the general property tax 11
rate and a certain special property tax rate on vacant and abandoned property owned 12
by certain nonprofit organizations that would otherwise be exempt from property tax 13
under certain provisions of law; and generally relating to the taxation of vacant and 14 2 SENATE BILL 550
abandoned property owned by nonprofit organizations in Baltimore City but no 1
longer used for the purpose for which the nonprofit organization was established. 2
BY adding to 3
Article – Tax – Property 4
Section 6–202.2 5
Annotated Code of Maryland 6
(2019 Replacement Volume and 2024 Supplement) 7
BY repealing and reenacting, with amendments, 8
Article – Tax – Property 9
Section 6–302, 7–202(b)(1), and 7–204 10
Annotated Code of Maryland 11
(2019 Replacement Volume and 2024 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Tax – Property 15
6–202.2. 16
(A) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY ESTABLISH , 17
BY LAW, A SUBCLASS OF REAL P ROPERTY CONSISTING O F REAL PROPERTY THAT : 18
(1) IS OWNED BY A NONPRO FIT ORGANIZATION ; AND 19
(2) HAS NOT BEEN USED VACANT AND HAS NOT R ECEIVED A 20
SIGNIFICANT IMPROVEM ENT FOR AT LEAST 3 5 CONSECUTIVE TAXABLE YEARS FOR 21
THE PURPOSE FOR WHIC H THE NONPROFIT ORGA NIZATION WAS ESTABLISHED. 22
(B) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY PROVIDE , BY 23
LAW, FOR ANY PROVISION NE CESSARY TO CARRY OUT THIS SECTION, INCLUDING A 24
DEFINITION FOR “SIGNIFICANT IMPROVEM ENT”. 25
6–302. 26
(a) Except as otherwise provided in this section and after complying with § 6–305 27
of this subtitle, in each year after the date of finality and before the following July 1, the 28
Mayor and City Council of Baltimore City or the governing body of each county annually 29
shall set the tax rate for the next taxable year on all assessments of property subject to that 30
county’s property tax. 31
(b) (1) Except as provided in [subsection] SUBSECTIONS (c) AND (D) of this 32
section and §§ 6–305 and 6–306 of this subtitle: 33
SENATE BILL 550 3
(i) there shall be a single county property tax rate for all real 1
property subject to county property tax except for operating real property described in § 2
8–109(c) of this article; and 3
(ii) the county tax rate applicable to personal property and the 4
operating real property described in § 8–109(c) of this article shall be no more than 2.5 5
times the rate for real property. 6
(2) Paragraph (1) of this subsection does not affect a special rate prevailing 7
in a taxing district or part of a county. 8
(c) (1) The Mayor and City Council of Baltimore City or the governing body of 9
a county may set a special rate for a vacant lot or improved property cited as vacant and 10
unfit for habitation or other authorized use on a housing or building violation notice. 11
(2) On or before December 1 each year, the Mayor and City Council of 12
Baltimore City or the governing body of a county that enacts a special rate under paragraph 13
(1) of this subsection shall report to the Department of Housing and Community 14
Development and, in accordance with § 2–1257 of the State Government Article, to the 15
General Assembly on: 16
(i) the special rate set under paragraph (1) of this subsection; 17
(ii) the number of properties to which the special rate applies; 18
(iii) the revenue change resulting from the special rate; 19
(iv) the use of the revenue from the special rate; and 20
(v) whether properties subject to the special rate are viable for 21
adaptive reuse, as defined in § 1–102 of the Housing and Community Development Article, 22
and plans to convert viable properties. 23
(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSE CTION, THE MAYOR 24
AND CITY COUNCIL OF BALTIMORE CITY MAY SET A SPECIA L RATE FOR REAL 25
PROPERTY THAT : 26
(I) IS OWNED BY A NONPRO FIT ORGANIZATION ; AND 27
(II) HAS NOT BEEN USED VACANT AND HAS NOT R ECEIVED A 28
SIGNIFICANT IMPROVEM ENT FOR AT LEAST 3 5 CONSECUTIVE TAXABLE YEARS FOR 29
THE PURPOSE FOR WHIC H THE NONPROFIT ORGA NIZATION WAS ESTABLISHED . 30
(2) THE SPECIAL RATE AUTH ORIZED UNDER PARAGRA PH (1) OF THIS 31
SUBSECTION MAY NOT E XCEED 10 TIMES THE PROPERTY T AX RATE SET UNDER 32
SUBSECTION (B)(1)(I) OF THIS SECTION. 33 4 SENATE BILL 550
(D) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY, BY LAW, 1
IMPOSE ON REAL PROPE RTY THAT WOULD OTHER WISE BE EXEMPT FROM PROPERTY 2
TAX UNDER § 7–202 OR § 7–204 OF THIS ARTICLE THE GENERAL PROPERTY TAX RATE 3
SET UNDER SUBSECTION (B)(1)(I) OF THIS SECTION AND THE SPEC IAL RATE 4
AUTHORIZED UNDER SUB SECTION (C)(1) OF THIS SECTION IF T HE REAL PROPERTY 5
IS: 6
(1) A VACANT LOT; OR 7
(2) IMPROVED PROPERTY CI TED AS VACANT AND UN FIT FOR 8
HABITATION OR OTHER AUTHORIZED USE ON A HOUSING OR BUILDING VIOLATION 9
NOTICE. 10
7–202. 11
(b) (1) Except as provided in subsection (c) of this section AND § 6–302(D) OF 12
THIS ARTICLE and subject to § 7–204.1 of this subtitle, property is not subject to property 13
tax if the property: 14
(i) is necessary for and actually used exclusively for a charitable or 15
educational purpose to promote the general welfare of the people of the State, including an 16
activity or an athletic program of an educational institution; and 17
(ii) is owned by: 18
1. a nonprofit hospital; 19
2. a nonprofit charitable, fraternal, educational, or literary 20
organization including: 21
A. a public library that is authorized under Title 23 of the 22
Education Article; and 23
B. a men’s or women’s club that is a nonpolitical and nonstock 24
club; 25
3. a corporation, limited liability company, or trustee that 26
holds the property for the sole benefit of an organization that qualifies for an exemption 27
under this section; or 28
4. a nonprofit housing corporation. 29
7–204. 30
SENATE BILL 550 5
[Subject] EXCEPT AS PROVIDED IN § 6–302(D) OF THIS ARTICLE AND SUBJECT 1
to § 7–204.1 of this subtitle, property that is owned by a religious group or organization is 2
not subject to property tax if the property is actually used exclusively for: 3
(1) public religious worship; 4
(2) a parsonage or convent; or 5
(3) educational purposes. 6
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 7
1, 2025, and shall be applicable to all taxable years beginning after June 30, 2025. 8
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.