Md. Code, Tax - Property § 7-101
Property tax exemptions provided under this title shall be strictly construed.
Md. Code, Tax - Property, Title 7
Md. Code, Tax - Property, Title 7
in effectMd. Code, Tax - Property § 7-102
Unless otherwise provided in the law establishing the exemption, when any property is exempted by law from property tax, the exemption is effective on the next date of finality after the effective date of the law.
Md. Code, Tax - Property § 7-103
(a) Real property that is subject to exemption from property tax by Subtitle 2 of this title is not exempted until the exemption has been applied for and approved under this section.
(b) (1) A person claiming an exemption shall apply to the supervisor of the county where the real property is located on the form that the Department requires.
(2) The application shall contain the information that the Department requires.
(c) The supervisor shall approve or reject each application for exemption under this section.
(d) If the exemption is approved, the supervisor shall enter:
(1) the real property exemption in the assessment records; and
(2) the real property on the list of exempt property.
(e) If an application is rejected, the supervisor shall notify the person claiming the exemption of:
(1) the reasons for rejection, as provided by § 8–402 of this article; and
(2) the right to a hearing and appeal as provided by Title 14, Subtitle 5 of this article.
(f) The Department and the supervisor shall periodically review the list of exempt property to determine whether any property does not meet the requirements of the law that provides for the exemption.
Md. Code, Tax - Property § 7-104
(a) Except as provided in subsection (c) of this section and in §§ 7–202 and 7–215 of this title, property tax on wholly exempt property shall be abated for the taxable year that follows the date on which the property became exempt.
(b) If an owner of property subject to an exemption on June 30 files an application for abatement on or before the following September 1 with the Department or the supervisor, the tax is abated for the taxable year.
(c) If property that is exempt from property tax is transferred to a person whose use of the property qualifies the property for an exemption from the date of transfer, then the property tax shall be abated from that date if the transferee:
(1) files an application under § 7–103 of this subtitle on or before September 1 of the following taxable year; or
(2) files an application under § 7–225 of this title within 6 months after receipt of the first assessment notice which includes the manufacturing personal property that is issued after the date of the transfer.
(d) If the owner of manufacturing personal property on January 1 files an application under § 7–225 of this title within 6 months after the date of the first assessment notice for a taxable year that includes the manufacturing personal property and the application is approved, the exemption shall be granted for that taxable year that appears on the assessment notice.
(e) Except as otherwise provided in this article, when any property that was formerly exempt under § 7–202 or § 7–204 of this title is sold and the property is no longer entitled to an exemption, the property tax is payable for the remainder of the taxable year from the date of transfer.
Md. Code, Tax - Property § 7-105
(a) (1) Notwithstanding § 7-103 of this subtitle, when all or any part of property that will be entitled to abatement is acquired by the State, a county, or a municipal corporation for public purposes, the supervisor shall abate the property tax on the property acquired from the date of acquisition for the remainder of the taxable year in which the property was acquired.
(2) If, at the time of settlement for the property, the owner has paid the property tax for that taxable year, the settlement officer shall reimburse the seller for the part of the property tax that was paid for the remainder of the taxable year from the date of acquisition.
(3) At the time of settlement, the settlement officer shall retain from any available funds of or due to the seller sufficient money to pay any property tax due for the property to the date of acquisition. The retained funds are nonrefundable.
(b) Except as otherwise provided in this article, when any property that was formerly exempt for public purposes is sold and the property is no longer entitled to the exemption, the property tax is payable for the remainder of the taxable year from the date of sale.
Md. Code, Tax - Property § 7-106
(a) Except for real property owned by the federal government, real property that is exempt by law from the property tax shall be assessed under this article and in the manner required by the Director.
(b) The assessments of exempt real property shall be maintained in the records of the Department and of the supervisor in each county in which the exempt property is located.
(c) For the purpose of distributing State funds, the assessments of exempt property may not be included in the total assessment of all property.
Md. Code, Tax - Property § 7-107
Unless the public general law or public local law granting the exemption specifically refers to and modifies or supersedes this section, real property that is exempt by law enacted after July 1, 1967, from county or municipal corporation property tax is treated as taxable real property for the purpose of computing any payments of State aid to counties or municipal corporations that by law are based on the assessment of real property.
Md. Code, Tax - Property § 7-108
(a) The governing body of a county may reduce, by law, the percent of the assessment of any personal property that is subject to the county property tax under § 7-222 or § 7-225 of this title.
(b) A county that reduces or eliminates the percent of assessment of taxable personal property under subsection (a) of this section shall submit a copy of the law to the Department. If the Department receives a copy of the law on or before May 1, the change shall be effective for the taxable year following the date the law is enacted.
Md. Code, Tax - Property § 7-109
(a) The personal property described in §§ 7-222, 7-225, and 7-226 of this title is subject to the municipal corporation property tax unless exempted in full or in part by the governing body of the municipal corporation by law.
(b) If any personal property referred to in subsection (a) of this section is exempt from county property tax but is subject to municipal corporation property tax, the Department or the supervisor shall provide the municipal corporation with the assessment of the personal property.
(c) A municipal corporation that takes any action under subsection (a) of this section shall submit a report of its action to the Department. If the Department receives a copy of the law authorizing the action on or before May 1, the action shall be effective for the taxable year following the date the law is enacted.
Md. Code, Tax - Property § 7-110
A law that grants or authorizes a tax credit under Title 9 of this article may not be construed to affect the eligibility of any entity for a property tax exemption provided under this title.
Md. Code, Tax - Property § 7-201
(a) Except as otherwise provided in subsection (b) of this section, property owned by an individual or a religious group is not subject to property tax if the property is actually used exclusively to bury dead individuals.
(b) Property owned by a cemetery or mausoleum company is not subject to property tax, if:
(1) the property is actually used exclusively to bury dead individuals; and
(2) the cemetery or mausoleum company:
(i) is not organized for profit; and
(ii) uses its funds only to maintain or improve the property.
Md. Code, Tax - Property § 7-202
(a) In this section:
(1) “fraternal organization” means any organization that:
(i) is conducted solely for the benefit of its members and its beneficiaries;
(ii) is operated on a lodge system with a ritualistic activity; and
(iii) has a representative form of government;
(2) “fraternal organization” includes a sororal organization; and
(3) “fraternal organization” does not include:
(i) any college or high school fraternity or sorority; or
(ii) any other fraternal or sororal organization the membership of which is restricted wholly or largely to students or graduates of an educational institution or a professional school.
(b) (1) Except as provided in subsection (c) of this section and § 6–302(d) of this article and subject to § 7–204.1 of this subtitle, property is not subject to property tax if the property:
(i) is necessary for and actually used exclusively for a charitable or educational purpose to promote the general welfare of the people of the State, including an activity or an athletic program of an educational institution; and
(ii) is owned by:
1. a nonprofit hospital;
2. a nonprofit charitable, fraternal, educational, or literary organization including:
A. a public library that is authorized under Title 23 of the Education Article; and
B. a men’s or women’s club that is a nonpolitical and nonstock club;
3. a corporation, limited liability company, or trustee that holds the property for the sole benefit of an organization that qualifies for an exemption under this section; or
4. a nonprofit housing corporation.
(2) The exemption under paragraph (1)(ii)1 of this subsection includes any personal property initially leased by a nonprofit hospital for more than 1 year under a lease that is noncancellable except for cause.
(c) (1) This subsection does not apply to real property owned by a nonprofit charitable museum that:
(i) is open to the public; and
(ii) does not charge an admission fee.
(2) Except for a nonprofit hospital, not more than 100 acres of real property owned by an exempt organization and appurtenant to the premises of the exempt organization is exempt from property tax, if the property is located outside of a municipal corporation or Baltimore City.
(3) Not more than 100 acres of real property of a nonprofit hospital that is appurtenant to the hospital is exempt from property tax.
(d) (1) Notwithstanding § 7–104 of this title and after filing the application provided by § 7–103 of this title, property tax on any property that is transferred to a nonprofit charitable organization is abated from the date during the taxable year when the instrument transferring title to the organization is recorded if:
(i) the property is transferred to a nonprofit charitable organization qualified under § 501(c)(3) of the Internal Revenue Code;
(ii) the property becomes exempt under this section;
(iii) the property has a value less than $300,000 as listed in the records of the Department on the date when the instrument transferring title to the organization is recorded; and
(iv) the nonprofit charitable organization provides the Department evidence of the property tax it actually paid or reimbursed at the property settlement.
(2) The amount of property tax abated under this subsection may not exceed the amount of property tax actually paid or reimbursed by an eligible organization at the property settlement.
Md. Code, Tax - Property § 7-203
Property is not subject to property tax if the property:
(1) is owned by the Chesapeake Bay Foundation, Inc.; and
(2) is used solely for:
(i) the environmental education of the public; or
(ii) the maintenance of:
1. a natural area for public use; or
2. a sanctuary for wildlife.
Md. Code, Tax - Property § 7-204
Except as provided in § 6–302(d) of this article and subject to § 7–204.1 of this subtitle, property that is owned by a religious group or organization is not subject to property tax if the property is actually used exclusively for:
(1) public religious worship;
(2) a parsonage or convent; or
(3) educational purposes.
Md. Code, Tax - Property § 7-204.1
§7–204.1.
(a) An organization that owns property in Baltimore City that is not subject to property tax as of June 1, 2014, under § 7–202 or § 7–204 of this subtitle shall submit an application to the Department in accordance with this section:
(1) beginning with April 1, 2016, on or before the earlier of April 1 of the year in which the property is assessed in accordance with the Department’s 3–year cycle or April 1, 2017; and
(2) on or before April 1 of each subsequent year in which the property is assessed in accordance with the Department’s 3–year cycle.
(b) The application shall:
(1) be made on the form that the Department provides;
(2) certify that each property owned by the organization in Baltimore City that is not subject to property tax is in current actual use for a tax–exempt purpose as enumerated in § 7–202 or § 7–204 of this subtitle; and
(3) include a statement by a representative of the organization under oath that the facts stated in the application are true, correct, and complete.
(c) A property subject to this section for which an application has not been filed on or before April 1 of a year in which an application is due under subsection (a) of this section shall be subject to property tax effective the following July 1.
(d) A property for which an application is filed after April 1 of a year in which an application is due under subsection (a) of this section is not subject to property tax effective:
(1) the next taxable year if the application is received on or after July 1 but on or before April 1; or
(2) the second following taxable year if the application is received after April 1 but before July 1.
(e) An organization that owns property subject to this section shall notify the Department and the Director of Finance of Baltimore City within 30 days after the property ceases to be used for a tax–exempt purpose as enumerated in § 7–202 or § 7–204 of this subtitle.
Md. Code, Tax - Property § 7-204.2
§7–204.2. IN EFFECT
// EFFECTIVE UNTIL DECEMBER 31, 2026 PER CHAPTERS 229 AND 230 OF 2023 //
(a) A person who applies for an exemption under § 7–202 or § 7–204 of this subtitle for real property in Baltimore City may request that the exemption be applied retroactively for a period of up to 3 taxable years, ending with the taxable year in which the application is filed.
(b) Subject to subsection (c) of this section and notwithstanding any other provision of this article:
(1) the Department shall grant an exemption for all eligible taxable years to a person who requests a retroactive exemption under this section; and
(2) Baltimore City and the State shall pay a refund to the person for any excess taxes paid due to a retroactive exemption granted under this section.
(c) A retroactive exemption granted by the Department under this section:
(1) is subject to the review and approval of the Baltimore City Solicitor and Baltimore City Department of Finance; and
(2) may be granted only on a showing of good cause as to why the exemption was not applied for in a timely manner.
(d) On or before December 1, 2023, and each December 1 through December 1, 2027, the Baltimore City Department of Finance shall submit to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly a report that indicates:
(1) the number of requests for a retroactive exemption under this section that the Baltimore City Department of Finance received and approved during the immediately preceding year; and
(2) any amounts refunded for a retroactive exemption under this section.
Md. Code, Tax - Property § 7-205
Property that is owned by any nonprofit community water corporation is not subject to property tax if the corporation:
(1) is owned by a majority of the lot owners in the area that the water system serves; and
(2) charges a rate that is sufficient only to pay for the cost of operating the system.
Md. Code, Tax - Property § 7-206
(a) In this section, “facility” means a continuing care facility for the aged that:
(1) provides continuing care as defined in § 10–401 of the Human Services Article;
(2) is licensed as a related institution under Title 19, Subtitle 3 of the Health – General Article;
(3) is certified by the Department of Aging; and
(4) is exempt from federal income tax under § 501(c)(3) of the Internal Revenue Code.
(b) Property that is not otherwise exempt from taxation under this section or § 7-202 of this subtitle is not subject to property tax if the property:
(1) is owned by a facility; and
(2) is used:
(i) exclusively for religious worship;
(ii) exclusively for administration or for providing nonprofit services and activities to residents, including that part of land reasonably allocable to providing the administration, activities, or services, but may not include independent living units; however, nothing in this paragraph affects those independent living units qualifying for exemption under § 7-202 of this subtitle; or
(iii) to provide nursing care, domiciliary care, or comprehensive care including:
1. the part of any central administrative or service facility that is reasonably allocable to the licensed health care part of the facility; or
2. the part of any land that is reasonably allocable to the licensed health care part of the facility.
Md. Code, Tax - Property § 7-207
(a) (1) In this section the following words have the meanings indicated.
(2) “Blind individual” means an individual who has a permanent impairment of both eyes that causes:
(i) central visual acuity, with corrective glasses, of 20/200 or less in the better eye; or
(ii) central visual acuity of more than 20/200 if there is a field defect in which the peripheral field has contracted so that the widest diameter of visual field subtends an angular distance no greater than 20 degrees in the better eye.
(3) “Dwelling house”:
(i) means real property that is:
1. the legal residence of a blind individual or a surviving spouse; and
2. occupied by not more than 2 families; and
(ii) includes the lot or curtilage, and structures necessary to use the real property as a residence.
(4) “Surviving spouse” means the surviving spouse of a blind individual, if the surviving spouse has not remarried.
(b) Except as provided in subsection (d) of this section, a dwelling house is exempt from property tax to the extent of $40,000 of its assessment if the dwelling house is owned by:
(1) a blind individual; or
(2) a surviving spouse.
(c) Except as provided in subsection (d) of this section, after a blind individual dies, the surviving spouse shall receive an exemption under this section, if the dwelling house was formerly exempt under this section.
(d) (1) Except as provided in paragraph (2) of this subsection, an exemption under this section shall be granted in addition to any other exemption authorized by law.
(2) An individual may receive an exemption under this section or under § 7–208 of this subtitle but not under both.
(e) An exemption under this section shall be prorated by the supervisor for any part of a taxable year that remains after the date in the year when the blind individual or surviving spouse applies for the exemption.
(f) (1) The governing body of a county or a municipal corporation may authorize, by law, a refund to a blind individual who receives an exemption under this section for any county or municipal corporation property tax paid in the taxable years in which an exemption was authorized but not granted.
(2) A county or municipal corporation may not authorize a refund for a surviving spouse.
Md. Code, Tax - Property § 7-208
(a) (1) In this section the following words have the meanings indicated.
(2) “Disabled active duty service member” means an individual in active service of the military, naval, or air service as defined in 38 U.S.C. § 101 who has a service connected physical disability that:
(i) is reasonably certain to continue for the life of the service member; and
(ii) was not caused or incurred by misconduct of the service member.
(3) (i) “Disabled veteran” means an individual who:
1. is honorably discharged or released under honorable circumstances from active military, naval, or air service as defined in 38 U.S.C. § 101; and
2. has been declared by the U.S. Department of Veterans Affairs to have a permanent 100% service connected disability that results from blindness or other disabling cause that:
A. is reasonably certain to continue for the life of the veteran; and
B. was not caused or incurred by misconduct of the veteran.
(ii) “Disabled veteran” includes an individual who qualifies posthumously for a 100% service connected disability.
(4) “Dwelling house”:
(i) means real property that is:
1. the legal residence of a disabled active duty service member, disabled veteran, or surviving spouse; and
2. occupied by not more than 2 families; and
(ii) includes the lot or curtilage and structures necessary to use the real property as a residence.
(5) “Individual who died in the line of duty” means an individual who died while in the active military, naval, or air service of the United States as a result of an injury or disease that is deemed under 38 U.S.C. § 105 to have been incurred in the line of duty.
(6) “Surviving spouse” means an individual who has not remarried and who:
(i) is the surviving spouse of a disabled veteran;
(ii) is the surviving spouse of an individual who died in the line of duty; or
(iii) receives Dependency and Indemnity Compensation from the U.S. Department of Veterans Affairs.
(b) Except as provided in subsection (e) of this section, a dwelling house is exempt from property tax if:
(1) the dwelling house is owned by:
(i) a disabled active duty service member;
(ii) a disabled veteran;
(iii) a surviving spouse of an individual who died in the line of duty, if:
1. the dwelling house was owned by the individual at the time of the individual’s death;
2. the dwelling house was acquired by the surviving spouse within 2 years of the individual’s death, if the individual or the surviving spouse was domiciled in the State as of the date of the individual’s death; or
3. the dwelling house was acquired after the surviving spouse qualified for exemption for a former dwelling house under item 1 or 2 of this item, to the extent of the previous exemption; or
(iv) a surviving spouse of a disabled veteran who meets the requirements of subsection (c) of this section; and
(2) the application requirements of subsection (d) of this section are met.
(c) Except as provided in subsections (d) and (e) of this section, after a disabled veteran dies, the surviving spouse of the disabled veteran shall receive a disabled veteran’s property tax exemption:
(1) for the dwelling house that was formerly owned by the disabled veteran:
(i) if the dwelling house received an exemption under this section; and
(ii) if the surviving spouse owns and resides in the dwelling house;
(2) for the dwelling house that was formerly occupied by the disabled veteran:
(i) if the dwelling house did not receive an exemption under this section;
(ii) if the disabled veteran was domiciled in the State at death; and
(iii) if the surviving spouse owns and resides in the dwelling house; and
(3) for a dwelling house subsequently acquired by the surviving spouse, equal to the exemption for the former dwelling house when the dwelling house owned by the surviving spouse was transferred by the surviving spouse:
(i) if the surviving spouse owns and resides in the subsequently acquired dwelling house; and
(ii) if the surviving spouse has qualified under item (1) or (2) of this subsection.
(d) (1) A disabled veteran or a surviving spouse of a disabled veteran shall apply for an exemption under this section by providing to the supervisor:
(i) a copy of the disabled veteran’s discharge certificate from active military, naval, or air service; and
(ii) 1. on the form provided by the Department, a certification of the disabled veteran’s disability from the U.S. Department of Veterans Affairs; or
2. a rating decision of the disabled veteran’s disability from the U.S. Department of Veterans Affairs that includes the effective date of the rating decision.
(2) The disabled veteran’s certificate of disability or rating decision may not be inspected by individuals other than:
(i) the disabled veteran; or
(ii) appropriate employees of the State, a county, or a municipal corporation.
(3) A disabled active duty service member shall apply for an exemption under this section by providing to the supervisor, on the form provided by the Department, a certification of the service member’s disability from a physician licensed to practice medicine in the State or from the U.S. Department of Veterans Affairs.
(4) A surviving spouse of an individual who died in the line of duty shall apply for an exemption under this section by providing to the supervisor certification that the individual died while in active service as a result of an injury or disease incurred in the line of duty.
(5) (i) An individual may submit, and the Department shall accept, an application for the exemption under this section for a specific dwelling house the individual intends to purchase before the individual purchases the dwelling house.
(ii) The Department, within 15 business days following receipt of an application submitted under subparagraph (i) of this paragraph, shall process the application and send the applicant a letter stating:
1. that the application is preliminarily approved or preliminarily denied; and
2. if the application is preliminarily approved, the amount of the tax exemption for the dwelling the individual intends to purchase.
(iii) An individual who is issued a letter preliminarily approving the exemption shall receive the exemption for the dwelling referenced in the letter after becoming the owner of the dwelling without having to file another application.
(e) (1) Except as provided in paragraph (2) of this subsection, an exemption under this section shall be granted in addition to any other exemption authorized by law.
(2) An individual may receive an exemption under this section or under § 7–207 of this subtitle but not under both.
(f) (1) An exemption under this section is prorated by the supervisor for any part of a taxable year that remains after the date in the year when the disabled active duty service member, disabled veteran, or surviving spouse applies for the exemption.
(2) (i) Notwithstanding any other provision of this article and except as provided in subparagraph (ii) of this paragraph, if a dwelling is transferred to a disabled active duty service member, disabled veteran, or surviving spouse who qualifies for an exemption under this section, the exemption applies and the property tax is abated from the date of settlement for the purchase of the property, if the transferee applies for the exemption within 30 days after the settlement for the purchase of the property.
(ii) Notwithstanding § 7–104 of this title and for any taxable year beginning on or after July 1, 2018, the governing body of Montgomery County may authorize, by law, an abatement of any overdue property tax:
1. on a dwelling transferred to a disabled active duty service member, disabled veteran, or surviving spouse who applies for and qualifies for an exemption under this section; and
2. for which the transferee is liable.
(3) The Department shall adopt regulations to administer the provisions of paragraph (2)(i) of this subsection.
(g) (1) Subject to paragraphs (2) and (3) of this subsection, in the taxable years in which an exemption under this section was authorized but not granted, the State, a county, or a municipal corporation shall pay a refund to an individual described below who receives an exemption under this section:
(i) to a disabled active duty service member, disabled veteran, or surviving spouse for any State property tax paid;
(ii) to a disabled active duty service member, disabled veteran, or surviving spouse for any county property tax paid; or
(iii) to a disabled active duty service member or disabled veteran for any municipal corporation property tax paid.
(2) A disabled active duty service member or disabled veteran may apply for a refund of State, county, and municipal corporation property tax paid on the dwelling house while the exemption was available only if the disabled active duty service member or disabled veteran applies for the exemption during the 3–year period beginning with the calendar year in which the disabled active duty service member or disabled veteran initially became eligible for an exemption under this section.
(3) A surviving spouse may apply for a refund of State, county, and municipal corporation property tax paid on the dwelling house while the exemption was available, only if the surviving spouse applies for the exemption during the 3–year period beginning with the calendar year in which the surviving spouse initially became eligible for an exemption under this section.
(h) (1) For the purposes of subsections (f) and (g) of this section, the State, a county, or a municipal corporation shall pay to a disabled active duty service member, disabled veteran, or surviving spouse interest on the amount of a refund if:
(i) the disabled active duty service member, disabled veteran, or surviving spouse is eligible and has applied for the refund; and
(ii) the State, county, or municipal corporation fails to make the refund within 60 days after the eligible disabled active duty service member, disabled veteran, or surviving spouse has applied for the refund.
(2) If interest is payable under this subsection:
(i) the State shall pay interest at the rate the State charges on overdue taxes;
(ii) the county or municipal corporation shall pay interest at the rate the county or municipal corporation charges on overdue taxes; and
(iii) interest shall accrue from the date the refund application is filed with the State, county, or municipal corporation.
(i) Each county shall include information on the property tax bill about the availability of the property tax exemption for disabled active duty service members, disabled veterans, and surviving spouses authorized under this section.
Md. Code, Tax - Property § 7-209
(a) Property is not subject to property tax if the property:
(1) is owned by an incorporated, nonprofit fire company or rescue squad; and
(2) is necessary for and actually used exclusively for the purposes of the fire company or rescue squad, including property that:
(i) is used for:
1. training; or
2. fund raising at carnivals or bazaars;
(ii) is held in an advanced land acquisition program of the fire company or rescue squad;
(iii) is leased for not more than 60 days during any 12–month period, if:
1. the property is used for a purpose that is related to the purposes of the fire company or rescue squad; and
2. the rent that is received from the property is used exclusively for the purposes of the fire company or rescue squad;
(iv) is leased to any nonprofit organization, if:
1. the property is used for a purpose that is related to the purposes of the fire company or rescue squad; and
2. the rent that is received from the property is used exclusively for the purposes of the fire company or rescue squad; or
(v) is used as a residence for an individual who:
1. is responsible for taking care of property owned by the fire company or rescue squad;
2. is a member of the fire company or rescue squad;
3. is not an employee of the fire company or rescue squad; and
4. is not under an obligation to pay for the use of the property.
(b) The exemption under subsection (a) of this section applies in Baltimore County only if real property owned by an incorporated, nonprofit fire company or rescue squad located in Baltimore County:
(1) is actually used exclusively for the purposes of the fire company or rescue squad; or
(2) is not used for any purpose but will be actually used exclusively for the purposes of the fire company or rescue squad in the future.
Md. Code, Tax - Property § 7-210
(a) Except as otherwise provided in § 6-102 of this article and except as otherwise provided under this section, government-owned property is not subject to property tax, if the property:
(1) is devoted to a governmental use or purpose; and
(2) is owned by:
(i) the federal government;
(ii) the State;
(iii) a county or a municipal corporation; or
(iv) an agency or instrumentality of the federal government, the State, a county, or of a municipal corporation.
(b) The exemption provided for the property owned by an agency or instrumentality in subsection (a)(2)(iv) of this section applies only to the extent that a law exempts the property.
Md. Code, Tax - Property § 7-211
(a) (1) In this subsection, “national defense” includes homeland security.
(2) An interest of a person in personal property of the federal government or of the State is not subject to property tax if the person holds an interest in the property under a contract with the federal government or the State for:
(i) manufacturing, constructing, or assembling equipment, supplies, or component parts for national defense purposes; or
(ii) research or development for national defense purposes.
(3) An interest of a person in personal property or real property of the federal government or of the State is not subject to property tax if that property:
(i) is situated on land that is owned by the federal government and located within the defined boundaries of a military installation; and
(ii) is used for national defense purposes or for housing for military personnel and their families.
(b) (1) This subsection does not apply to:
(i) property owned by the Maryland-National Capital Park and Planning Commission in Prince George’s County that is located in a public airport and is used for a restaurant concession; and
(ii) property owned by the Canal Place Preservation and Development Authority in Allegany County if:
1. the property is leased for a concession for a term of 10 years or more; or
2. the lessee has made a capital investment in the property or improvements on the property in excess of $500,000.
(2) An interest of a person in property of the federal government, the State, a county, or a municipal corporation is not subject to property tax, if the property is used for a concession that:
(i) is located in a public airport, park, market, or fairground; and
(ii) is available for use by the general public.
(c) (1) Except for an interest in federal enclave property as defined in § 7–211.3 of this subtitle, an interest of a person in any property of the federal government or the State is not subject to property tax, if the government that owns the property makes negotiated payments in lieu of tax payments.
(2) Land owned by the federal government that is the location for federal enclave property as defined in § 7–211.3 of this subtitle is not subject to property tax.
(d) (1) In this subsection, “port facility” includes at least 1 or a combination of:
(i) lands, piers, docks, wharves, warehouses, sheds, transit sheds, elevators, compressors, refrigeration storage plants, buildings, structures, and other facilities, appurtenances, and equipment that is useful or designed for use in connection with shipbuilding, ship repair, or the operation of a port;
(ii) every kind of terminal, storage structure, or facility that is useful or designed for use in handling, storing, loading, or unloading freight or passengers at marine terminals; and
(iii) every kind of transportation facility that is useful or designed for use in connection with any of these.
(2) An interest of a person in property in a port facility that is owned by the federal government or the State, any of their agencies or instrumentalities, or a county or municipal corporation is not subject to the property tax.
(e) An interest of a person in property in an international trade center as described in § 6-101(e)(4) of the Transportation Article, is not subject to property tax, if the State, or any agency or instrumentality of the State:
(1) owns the property; and
(2) makes negotiated payments in lieu of tax payments.
(f) An interest of a person in personal property in a vending facility operated under the Maryland Vending Program for the Blind is not subject to the property tax.
(g) (1) In this subsection, “public senior higher education institution” has the meaning stated in § 10-101 of the Education Article.
(2) An interest of a person in property of the State is not subject to property tax if the person holds an interest in the property under a lease agreement with the State to use the property to provide housing to students of public senior higher education institutions.
(3) A public senior higher education institution may negotiate a payment-in-lieu-of-taxes agreement with the municipal corporation or county in which the property specified in paragraph (2) of this subsection is located.
(h) (1) In this subsection, “bus passenger shelter” means:
(i) a bus passenger shelter as defined in § 8–750 of the Transportation Article; or
(ii) a shelter located at a designated transit bus stop on a campus of a public senior higher education institution as defined in § 10–101 of the Education Article.
(2) An interest of a person in property of the State, county, or a municipal corporation or any agency or instrumentality of the State, county, or a municipal corporation is not subject to property tax:
(i) if the person holds an interest in the property under an agreement with the State, county, or municipal corporation under § 8–751 or § 8–752 of the Transportation Article to operate a bus passenger shelter; or
(ii) if the person holds an interest in the property under an agreement with a public senior higher education institution to operate a bus passenger shelter.
(i) An interest of a person in personal property that is located on property owned by the State is not subject to property tax if the personal property is a crane used for cargo handling purposes.
Md. Code, Tax - Property § 7-211.1
§7–211.1.
Property is not subject to property tax if the property:
(1) is actually used exclusively for heating, cooling, or generation or distribution of electricity for property owned and occupied by the State; and
(2) was not subject to property taxation for the taxable year beginning July 1, 1996.
Md. Code, Tax - Property § 7-211.2
§7–211.2.
(a) In this section, “national defense” includes homeland security.
(b) Personal property or real property is not subject to property tax if the federal government holds at least a 50% interest in the property, or the entity that owns the property, and the property:
(1) is situated on land that is owned by the federal government and located within the defined boundaries of a military installation; and
(2) is used for national defense purposes or for housing for military personnel and their families.
Md. Code, Tax - Property § 7-211.3
§7–211.3.
(a) (1) In this section the following words have the meanings indicated.
(2) (i) “Federal enclave property” means real property improvements or an interest in real property improvements:
1. that are located within the defined boundaries of federally owned land where:
A. the federal jurisdiction would preclude taxation by the State; and
B. the federal government has waived its immunity from State property taxation by law or other form of consent;
2. that are either:
A. owned by a person other than the federal government; or
B. held by a person that is taxable under § 6–102(e) of this article; and
3. that are not otherwise exempt under this title or any other provision of law.
(ii) “Federal enclave property” does not include any property owned by the United States Department of Veterans Affairs that is leased to a person through an enhanced use lease.
(3) “Local jurisdiction” means a county and, where appropriate, a municipal corporation in which federal enclave property is located.
(4) “Private developer” means a person, other than the federal government or an agency thereof, that owns federal enclave property or holds an interest or privilege under § 6–102(e) of this article in federal enclave property.
(b) (1) Subject to the provisions of this section and on initiation by the local jurisdiction where the federal enclave property is located, the local jurisdiction and the State may jointly enter into a payment in lieu of tax agreement with a private developer for federal enclave property.
(2) An agreement authorized under paragraph (1) of this subsection is not effective until it is approved by the federal government.
(3) (i) A local jurisdiction shall initiate any discussions to negotiate a payment in lieu of tax agreement with a private developer of federal enclave property no later than 30 days after receiving written notice by the private developer or the federal government that a development has been proposed for the federal enclave property.
(ii) When any discussions to negotiate a payment in lieu of tax agreement have commenced, the Maryland Department of Transportation shall notify the Legislative Policy Committee within 30 days.
(4) Federal enclave property is not subject to property tax if a private developer enters into a payment in lieu of tax agreement with the State and the local jurisdiction where the federal enclave property is located.
(5) The parties to an agreement under this subsection and the federal government shall consider the total impact and benefits of the development of the federal enclave property on the State and on local jurisdictions, including but not limited to:
(i) the impact on local and regional transportation;
(ii) future economic development;
(iii) the financial resources of the local jurisdiction;
(iv) the environment;
(v) natural resource allocation;
(vi) infrastructure capacity;
(vii) employment;
(viii) disadvantaged business enterprises, minority business enterprises, and small business enterprises;
(ix) the availability and use of public services;
(x) in–kind contributions related to the development, including the services, facilities, personal and real property, traffic mitigation, rights–of–way, and other assets and benefits of the federal government or the private developer made available to and used by the public; and
(xi) any other matter impacted by the development of the federal enclave property.
(6) (i) An agreement under this subsection shall be approved and signed by the Maryland Department of Transportation, on behalf of the State, any party responsible for making a required payment or fulfilling any other provision of the agreement, and the governing body of the local jurisdiction where the federal enclave property is located.
(ii) The Maryland Department of Transportation shall seek consultation with any local jurisdiction impacted by the development of the federal enclave property.
(7) The private developer shall make a payment, if any, in lieu of property taxes to the county tax collector for the county where the federal enclave property is located in an amount and at a time determined by the agreement under this subsection.
(8) The payment required by an agreement under this subsection may not exceed the property tax that would otherwise be due to the State and local jurisdiction if the payment in lieu of tax agreement were not in effect.
(9) The payment received under paragraph (7) of this subsection shall be distributed by the tax collector in accordance with the agreement under this subsection to:
(i) a dedicated fund specifically designated in the agreement as a contribution to the cost of a specific public improvement associated with the development of the federal enclave property; or
(ii) the State, county, and, if applicable, municipal corporation where the federal enclave property is located in the ratio stated in the agreement.
(10) An agreement under this subsection may provide for abating or reducing property tax previously imposed on the federal enclave property.
(11) The Maryland Department of Transportation may adopt regulations to implement this section, in consultation with:
(i) the Department;
(ii) the Department of Commerce;
(iii) the Department of the Environment;
(iv) the Department of Housing and Community Development; and
(v) the Department of Planning.
Md. Code, Tax - Property § 7-212
Property is not subject to property tax if the property:
(1) is owned by the Gunpowder Youth Camps, Inc.; and
(2) is used exclusively as a nonprofit youth camp.
Md. Code, Tax - Property § 7-214
(a) Property is not subject to property tax if the property:
(1) is owned by a nonprofit historical society, museum, or academy, the purposes of which are solely to study the history of or to maintain and preserve historic homes, places, and personal property for the use and benefit of the public; and
(2) is actually used exclusively for the purposes of any of these organizations.
(b) Up to 15 acres of property is not subject to property tax if the property:
(1) is owned by a nonprofit organization for the purpose of maintaining a commemorative park or site for a monument to the veterans of the armed services of:
(i) the United States; or
(ii) the Confederate States of America; and
(2) is actually used exclusively for the purposes of these organizations.
Md. Code, Tax - Property § 7-215
(a) In this section, “authority” means an authority as defined in § 12-101 of the Housing and Community Development Article.
(b) Subject to subsection (c) of this section, the property of an authority is not subject to property tax.
(c) (1) An authority shall make a payment, if any, to the county and any municipal corporation that has a population of more than 1,000 in which any part of the exempt property is located in an amount determined by agreement with the county and the municipal corporation.
(2) The payment may not be greater than the property tax that would have been payable without this section.
(d) Notwithstanding § 7-104 of this title and after filing the application provided by § 7-103 of this title, property tax on any property that becomes exempt under this section is abated from the date during the taxable year when the instrument transferring title to the authority was recorded.
Md. Code, Tax - Property § 7-216
Property is not subject to property tax if:
(1) the property is owned by the Izaak Walton League and is used solely for maintaining a natural area for public use, for a sanctuary, or for wildlife; or
(2) the property or any interest in the property is transferred by the Izaak Walton League and is used solely for maintaining a natural area for public use, or a sanctuary, or for wildlife.
Md. Code, Tax - Property § 7-217
(a) Except as provided in subsection (b) of this section, property is not subject to property tax if the property:
(1) is owned by the Maryland Ornithological Society, Inc.; and
(2) is used solely for:
(i) the maintenance of a natural area for public use;
(ii) a sanctuary for wildlife;
(iii) the environmental education of the public;
(iv) scientific research in ornithology; or
(v) the general management of wildlife.
(b) In Somerset County the property tax exemption applies only to State property tax.
Md. Code, Tax - Property § 7-218
Property is not subject to property tax if the property:
(1) is owned by the Nature Conservancy; and
(2) is used:
(i) to assist in the preservation of a wild nature area;
(ii) to establish a nature reserve or other protected area; or
(iii) generally to promote conservation.
Md. Code, Tax - Property § 7-219
The following agricultural products and commodities are not subject to valuation or to property tax:
(1) crops or the produce of any land in the possession of the producer or the agent of the producer;
(2) fish in the possession of persons catching, salting, or packing the fish or in the possession of agents until sold;
(3) poultry, including hatchery eggs;
(4) tobacco stored in the State tobacco warehouse; and
(5) regardless of whether they are in their original package, green coffee beans:
(i) imported from a foreign country;
(ii) that are owned by and in possession of the importer; and
(iii) in which no physical or chemical change has been made by any manufacturing process.
Md. Code, Tax - Property § 7-220
Aircraft as defined in § 5-101 of the Transportation Article are not subject to valuation or to property tax.
Md. Code, Tax - Property § 7-221
(a) Personal property is not subject to valuation or to property tax, if the personal property is owned by:
(1) a financial institution as defined in § 8-101(c) of the Tax - General Article other than a savings and loan association as defined in § 7-221.1 of this subtitle; or
(2) a federal or State chartered credit union.
(b) This exemption does not include any personal property that is leased, loaned, or made available by the institution for the use of a person whose business is not that of the institution.
Md. Code, Tax - Property § 7-221.1
§7–221.1.
(a) (1) In this section the following words have the meanings indicated.
(2) “Bank or trust company” means:
(i) a commercial bank;
(ii) a savings bank;
(iii) a trust company; or
(iv) a company that substantially competes with national banks in the State.
(3) “Savings and loan association” means a savings and loan association that:
(i) is organized under the laws of the State;
(ii) is organized under the laws of another state and is admitted to do business in this State; or
(iii) is organized under the laws of the United States and has an office in this State.
(b) Except as provided in subsection (c) of this section, personal property is not subject to valuation or to property tax, if the personal property:
(1) is owned by a bank or trust company or a savings and loan association and is used in connection with the processing of deposits or loans of the bank or trust company or savings and loan association;
(2) is a computer program, as defined in § 11-225(a) of the Tax - General Article, or computer hardware; and
(3) is not used in connection with word processing.
(c) The exemption under this section does not apply to any personal property that is leased, loaned, or made available by a bank or trust company or a savings and loan association for the use of a person that is not a bank or trust company or savings and loan association.
Md. Code, Tax - Property § 7-222
(a) Except as provided in § 7-109 of this title and in subsection (b) of this section, the stock in business of a person engaged in a manufacturing or commercial business is not subject to property tax.
(b) Except as provided by § 7-108 of this title, the personal property described in subsection (a) of this section is subject to a county property tax on 35% of its assessment in Wicomico County.
Md. Code, Tax - Property § 7-223
The farming implements owned or leased by a farmer are not subject to valuation or property tax.
Md. Code, Tax - Property § 7-224
The livestock of a farmer is not subject to valuation or to property tax.
Md. Code, Tax - Property § 7-225
(a) Except as provided in § 7-109 of this title and in subsection (b) of this section, if used in manufacturing, the following personal property, however operated and whether or not in use, is not subject to property tax:
(1) tools;
(2) implements;
(3) machinery; or
(4) manufacturing apparatus or engines.
(b) Except as provided by § 7-108 of this title, the personal property listed in subsection (a) of this section is subject to a county property tax on:
(1) 100% of its assessment in Garrett County, Somerset County, Wicomico County, and Worcester County; and
(2) 75% of its assessment in Allegany County.
(c) Property does not qualify for the exemption under this section if the property is used primarily in administration, management, sales, storage, shipping, receiving, or any other nonmanufacturing activity.
(d) In order to qualify for the exemption under this section, a person claiming the exemption must apply for and be granted the exemption by the Department.
Md. Code, Tax - Property § 7-226
Except as provided in § 7-109 of this title, raw materials and manufactured products in the possession of a manufacturer are not subject to property tax.
Md. Code, Tax - Property § 7-227
(a) Except for personal property used in connection with a business, occupation, or profession, personal property owned by an individual and located at the individual’s place of residence is not subject to valuation or to property tax.
(b) (1) Notwithstanding subsection (a) of this section, personal property is not subject to valuation or to property tax if the personal property is:
(i) owned by an individual;
(ii) located at the individual’s place of residence; and
(iii) used in connection with a family child care home that is registered under Title 9.5, Subtitle 3 of the Education Article.
(2) In Anne Arundel County, notwithstanding subsection (a) of this section, personal property is not subject to valuation or to property tax if the personal property is:
(i) owned by an individual;
(ii) located at the individual’s place of residence; and
(iii) used in connection with a large family child care home that is registered under Title 9.5, Subtitle 3 of the Education Article.
(c) (1) Notwithstanding subsection (a) of this section, personal property is not subject to valuation or to property tax if:
(i) the personal property is owned by an individual and is used in connection with a business, occupation, or profession that is located at the individual’s principal residence; and
(ii) the sum total of the personal property, excluding vehicles exempt under § 7–230 of this subtitle, had a total original cost of less than $20,000.
(2) If the individual attests to owning a sum total of personal property with an original cost of less than $20,000, the Department may not:
(i) collect personal property information from the individual; or
(ii) require the individual to submit a personal property tax return.
Md. Code, Tax - Property § 7-229
The working tools of mechanics or artisans that are operated exclusively by hand are not subject to valuation or property tax.
Md. Code, Tax - Property § 7-230
A vehicle is not subject to valuation or property tax if the vehicle is:
(1) registered in Maryland or another jurisdiction; and
(2) of a vehicle classification described in Title 13, Subtitle 9, Part II of the Transportation Article.
Md. Code, Tax - Property § 7-231
(a) As used in this section, “vessel” includes a ship, boat, or watercraft.
(b) A vessel is not subject to valuation or to property tax if the vessel is:
(1) not more than 100 feet in length; or
(2) regularly used in whole or in part in commerce outside the State.
Md. Code, Tax - Property § 7-232
A voting system, as defined in § 1-101 of the Election Law Article, and related equipment, that is leased, rented, or acquired by a board of supervisors of elections is not subject to valuation or to property tax.
Md. Code, Tax - Property § 7-233
Property is not subject to property tax if the property:
(1) is owned by:
(i) the Boy Scouts of America;
(ii) the Girl Scouts of the United States of America; or
(iii) any council, unit, or troop of these organizations; and
(2) is actually used exclusively for the purposes of these organizations.
Md. Code, Tax - Property § 7-234
Property is not subject to property tax if the property:
(1) is owned by:
(i) a national organization of veterans of the United States armed services; or
(ii) any department, State or local unit, chapter, branch, or post of a national organization of veterans of the United States armed services, including:
1. the 29th Division Association of World War I; or
2. the Society of the Cincinnati of Maryland; and
(2) is necessary for and actually used exclusively for the purposes of any of these organizations.
Md. Code, Tax - Property § 7-235
Personal property is not subject to valuation or property tax if the property:
(1) is owned by an individual operating a vending facility under the Maryland Vending Program for the Blind; and
(2) is used exclusively for that purpose.
Md. Code, Tax - Property § 7-236
(a) In this section, “clean-burning fuel” has the meaning stated in § 9-101 of the Tax - General Article.
(b) Except as provided in subsection (c) of this section, refueling equipment or machinery used only to dispense clean-burning fuels into motor vehicles is not subject to property tax.
(c) The property tax for refueling equipment or machinery used only to dispense clean-burning fuels into motor vehicles is the applicable tax rate applied to:
(1) 20% of the assessed value in taxable year 1998;
(2) 40% of the assessed value in taxable year 1999;
(3) 60% of the assessed value in taxable year 2000;
(4) 80% of the assessed value in taxable year 2001; and
(5) 100% of the assessed value in taxable year 2002 and each taxable year thereafter.
Md. Code, Tax - Property § 7-237
(a) Except as provided in subsection (b) of this section, personal property is exempt from property tax if the property is machinery or equipment used to generate:
(1) electricity or steam for sale; or
(2) hot or chilled water for sale that is used to heat or cool a building.
(b) Subject to § 7–514 of this title, and except as provided in subsection (c) of this section, personal property that is machinery or equipment described in subsection (a) of this section is subject to county or municipal corporation property tax on:
(1) 75% of its value for the taxable year beginning July 1, 2000; and
(2) 50% of its value for the taxable year beginning July 1, 2001 and each subsequent taxable year.
(c) (1) (i) In this subsection the following words have the meanings indicated.
(ii) “Agrivoltaics” means the simultaneous use of areas of land for both solar power generation and agriculture.
(iii) “Brownfield” means:
1. a former industrial or commercial site identified by federal or State laws or regulations as contaminated or polluted; or
2. a closed municipal or rubble landfill regulated under a refuse disposal permit by the Department of the Environment.
(iv) “Community solar energy generating system” has the meaning stated in § 7–306.2 of the Public Utilities Article.
(v) “Electric company” has the meaning stated in § 1–101 of the Public Utilities Article.
(2) This subsection applies through the life cycle of a community solar energy generating system that:
(i) is placed in service after June 30, 2022; and
(ii) has been approved on or before December 31, 2030, by the Public Service Commission under § 7–306.2 of the Public Utilities Article.
(3) Personal property is exempt from county or municipal corporation property tax if the property is machinery or equipment that is part of a community solar energy generating system that:
(i) has a generating capacity that does not exceed 5 megawatts as measured by the alternating current rating of the system’s inverter;
(ii) provides at least 50% of the energy it produces to low– or moderate–income customers at a cost that is at least 20% less than the amount charged by the electric company that serves the area where the community solar energy generating system is located; and
(iii) 1. is used for agrivoltaics; or
2. is installed on a rooftop, brownfield, parking facility canopy, landfill, or clean fill.
(4) On or before October 1 each year, the Department shall report to the Senate Budget and Taxation Committee and the House Ways and Means Committee, in accordance with § 2–1257 of the State Government Article, on the number and location of projects that, in the immediately preceding taxable year, have received the exemption under this subsection.
Md. Code, Tax - Property § 7-238
(a) (1) In this section the following words have the meanings indicated.
(2) (i) “Computer software” means any program or routine used to cause a computer to perform a specific task or set of tasks.
(ii) “Computer software” includes:
1. system and application programs; and
2. database storage and management programs.
(3) “Embedded software” means computer instructions, known as microcode, that:
(i) reside permanently in the internal memory of a computer system or other equipment; and
(ii) are not intended to be removed without terminating the operation of the computer system or equipment and removing a computer chip, a circuit, or another mechanical device.
(b) Except as provided in subsections (c) and (d) of this section, computer software and any documentation related to the computer software are not subject to valuation or property tax.
(c) The exemption under this section does not apply to computer software or its related documentation if:
(1) the computer software is embedded software; or
(2) the computer software is sold from stock in business in a tangible medium ready for use as is.
(d) When reporting personal property under Title 11 of this article, a business may not reduce the original cost of the computer hardware by the value of the computer software that is acquired as part of the purchase of computer hardware.
Md. Code, Tax - Property § 7-239
(a) In this section the following words have the meanings indicated.
(1) “Certified coal pollution control facility” means property that:
(i) is used for the purpose of controlling emissions of pollutants into the air, ground, or waters of the State, resulting from the use of coal at an electrical generation facility, to achieve air quality standards, water quality standards, or effluent standards prescribed under the laws or regulations of the State or the United States; and
(ii) has been certified by the Department of the Environment as having all applicable federal and State environmental permits.
(2) “Coal waste disposal power project” means an electrical generation facility designed, constructed, and installed to reclaim, burn, and dispose of coal wastes in compliance with applicable federal and State air quality, water quality, and effluent standards.
(b) Except as otherwise provided in this section, property is subject to a partial exemption from property tax as provided in this section if the property is:
(1) a certified coal pollution control facility; or
(2) a coal waste disposal power project.
(c) Subject to subsection (d) of this section, the partial exemption granted under this section:
(1) is equal to 95% of the assessment of the property; and
(2) shall apply only to property placed in service as a part of a certified coal pollution control facility or a coal waste disposal power project, for which all necessary permits, including a certificate of public convenience and necessity, are issued on or after January 1, 1997.
(d) If a certified coal pollution control facility produces a profitable by-product or if a part of the facility is required for the operation of the business without regard to State and federal air quality, water quality, and effluent requirements, the partial exemption under this section applies only to that portion of the value of the facility attributable to pollution control activity.
(e) If a certified coal pollution control facility includes the replacement, repair, or retrofit of equipment that was subject to property tax on or before December 31, 1996, the partial exemption under this section shall be reduced by the replacement value of existing equipment that is replaced.
(f) (1) The Department shall adopt regulations to administer the exemption under this section.
(2) The regulations adopted under this subsection shall provide for the method for allocation of values required under subsections (d) and (e) of this section.
Md. Code, Tax - Property § 7-240
Personal property is not subject to property tax if the property:
(1) is owned by a nonprofit organization that:
(i) is qualified as tax exempt under § 501(c)(4) of the Internal Revenue Code; and
(ii) is engaged primarily in providing a program to render its best efforts to contain, clean up, and otherwise mitigate spills of oil or other substances occurring in United States coastal and tidal waters; and
(2) is used for the purposes of the organization.
Md. Code, Tax - Property § 7-241
(a) Subject to subsection (b) of this section, property reserved by the Charles County Planning Commission under § 9–805 of the Land Use Article is not subject to property tax.
(b) (1) The Commission shall notify the Charles County Supervisor of Assessments when land is reserved and when land is released from reservation.
(2) The notice to the Supervisor shall identify the land that has been reserved or released from reservation.
(c) The exemption under this section shall be:
(1) effective beginning with the first taxable year after the date on which the Supervisor receives from the Commission notification of the reservation; and
(2) terminated beginning with the first taxable year after the date on which the Supervisor receives from the Commission notification of the release of the reservation.
Md. Code, Tax - Property § 7-242
(a) (1) In this section the following words have the meanings indicated.
(2) “Residential wind energy equipment” means equipment on residential property that is installed to use wind energy to generate electricity to be used in a residential structure on the property.
(3) “Solar energy property” means equipment that is installed to use solar energy or solar thermal electric energy to generate electricity to be used in a structure or supplied to the electric grid, or provide hot water for use in a structure.
(b) Except as provided in § 8–240 of this article, the following are not subject to real property tax:
(1) residential wind energy equipment; and
(2) solar energy property.
Md. Code, Tax - Property § 7-243
(a) In this section, “heavy equipment property” has the meaning stated in § 20–609 of the Local Government Article.
(b) Heavy equipment property is not subject to the property tax if the property is subject to the gross receipts tax imposed under § 20–609 of the Local Government Article.
Md. Code, Tax - Property § 7-244
(a) (1) In this section the following words have the meanings indicated.
(2) “Associated equipment” has the meaning stated in § 9–1A–01 of the State Government Article.
(3) “Table games” has the meaning stated in § 9–1A–01 of the State Government Article.
(4) “Video lottery operation license” has the meaning stated in § 9–1A–01 of the State Government Article.
(5) “Video lottery terminal” has the meaning stated in § 9–1A–01 of the State Government Article.
(b) Video lottery terminals and any associated equipment or software leased by the State Lottery and Gaming Control Commission as provided in § 9–1A–21 of the State Government Article are not subject to property tax.
(c) An interest of a person in video lottery terminals and any associated equipment or software owned by the State Lottery and Gaming Control Commission as provided in § 9–1A–21 of the State Government Article is not subject to property tax.
(d) Video lottery terminals, any associated equipment and software, and table games owned or leased by a holder of a video lottery operation license are not subject to property tax.
Md. Code, Tax - Property § 7-245
(a) A person’s personal property is not subject to valuation or to property tax if all of the person’s personal property statewide had a total original cost of less than $20,000.
(b) If the person attests to owning a sum total of personal property with an original cost of less than $20,000, the Department may not:
(1) collect personal property information from the person; or
(2) require the person to submit a personal property tax return.
Md. Code, Tax - Property § 7-246
(a) In this section, “Pimlico racing facility site” and “training facility site” have the meanings stated in § 10–601 of the Economic Development Article.
(b) An interest of a person in an improvement at the Pimlico racing facility site or training facility site or an interest of a person in the real property of the Pimlico racing facility site or training facility site is not subject to property tax for the duration of:
(1) with respect to the Pimlico racing facility site, the long–term agreement described under § 10–646.1(d) of the Economic Development Article; or
(2) with respect to the training facility site, the long–term agreement described under § 10–646.1(d) of the Economic Development Article.
Md. Code, Tax - Property § 7-247
Property is not subject to property tax if the property is:
(1) owned by the Maryland Farm Bureau, Inc.; and
(2) used exclusively for:
(i) the agricultural education of the public;
(ii) aiding and encouraging agriculture in the State;
(iii) assisting in the collection, analysis, and dissemination of information relating to agriculture; or
(iv) the maintenance of a natural or recreational area for public use.
Md. Code, Tax - Property § 7-248
(a) In this section, “qualified data center” and “qualified data center personal property” have the meanings stated in § 11–238 of the Tax – General Article.
(b) The governing body of a county or municipal corporation may reduce or eliminate, by law, the percentage of the assessment of any qualified data center personal property used in a qualified data center that is subject to the county or municipal corporation property tax under this title.
(c) (1) A county or municipal corporation that reduces or eliminates the percentage of assessment of taxable qualified data center personal property under subsection (b) of this section shall submit a copy of the law to the Department.
(2) If the Department receives a copy of the law on or before May 1, the change will be effective for the taxable year following the date the law is enacted.
(d) If any qualified data center personal property is exempt under subsection (c) of this section from county property tax but is subject to municipal corporation property tax, the Department or the supervisor shall provide the municipal corporation with the assessment of the qualified data center personal property.
(e) The Department may adopt regulations to implement this section.
Md. Code, Tax - Property § 7-249
(a) This section applies only to nonresidential solar energy generating systems that are approved by the Public Service Commission under § 7–207 or § 7–207.1 of the Public Utilities Article on or after July 1, 2024.
(b) Nonresidential solar energy generating systems that are constructed on the rooftops of buildings or on parking facility canopies are not subject to valuation or to property tax.
Md. Code, Tax - Property § 7-250
(a) This section applies only to real property that includes a parking facility on which a solar energy generating system has been constructed on its canopy if the solar energy generating system has been approved by the Public Service Commission under § 7–207 or § 7–207.1 of the Public Utilities Article on or after July 1, 2024.
(b) The governing body of a county or municipal corporation may reduce or eliminate, by law, the percentage of the assessment of any real property that is subject to the county or municipal corporation property tax under this article if the real property includes a parking facility on which a solar energy generating system has been constructed on its canopy.
(c) (1) A county or municipal corporation that reduces or eliminates the percentage of assessment of taxable real property under subsection (b) of this section shall submit a copy of the law to the Department.
(2) If the Department receives a copy of the law on or before May 1, the change will be effective for the taxable year following the date the law is enacted.
(d) If any real property is exempt under subsection (c) of this section from county property tax but is subject to municipal corporation property tax, the Department or the supervisor shall provide the municipal corporation with the assessment of the real property.
(e) The Department may adopt regulations to implement this section.
Md. Code, Tax - Property § 7-251
Property is not subject to property tax if the property:
(1) is owned by The Hagerstown Multi–Use Sports and Events Facility, Inc.; and
(2) is used primarily for public social, recreational, and entertainment purposes.
Md. Code, Tax - Property § 7-301
All personal property is exempt from the State property tax.
Md. Code, Tax - Property § 7-302
(a) Real property is not subject to State property tax if the property:
(1) is owned by the American Association of Blood Banks, Incorporated; or
(2) is leased by the American Association of Blood Banks, Incorporated under a lease of 50 years or more.
(b) The property tax exemption under this section only applies to that portion of the property that is necessary for and actually used exclusively for the charitable or educational purposes of the American Association of Blood Banks, Incorporated.
(c) The property tax exemption under this section only applies for any taxable year for which a property tax credit for the property described in subsection (a) of this section is granted by the governing body of Montgomery County under § 9-317 of this article.
Md. Code, Tax - Property § 7-303
(a) Real property is not subject to State property tax if:
(1) on the real property there is an airport that is:
(i) located on privately owned land;
(ii) used by the public; and
(iii) licensed under Title 5 of the Transportation Article; and
(2) the real property is the part of the airport that is an improved aircraft landing area, including an approach zone and taxiway, and other part of the property that is designated by the Maryland Aviation Administration as necessary to meet the minimum standards of safety required for licensure.
(b) The property tax exemption under this section only applies for any taxable year for which and to the extent that a property tax exemption is granted by the governing body of a county under § 8-302 of this article.
Md. Code, Tax - Property § 7-304
(a) Property is not subject to State property tax if the property is:
(1) owned by a land trust as defined in § 3-2A-01 of the Natural Resources Article that is certified by the Maryland Environmental Trust to be a land trust in good standing and to have a cooperative agreement in effect; and
(2) used:
(i) to assist in the preservation of a natural area;
(ii) for the environmental education of the public;
(iii) to conserve agricultural land and to promote continued agricultural use of the land;
(iv) generally to promote conservation; or
(v) for the maintenance of a natural area for public use or a sanctuary for wildlife.
(b) To qualify for an exemption under this section, a land trust shall obtain a written certification every 5 years beginning July 1, 1998, or as scheduled by the Maryland Environmental Trust.
Md. Code, Tax - Property § 7-305
Property is not subject to State property tax if the property:
(1) is owned by the Harford Land Trust; and
(2) is used:
(i) to assist in the preservation of a wild nature area;
(ii) to establish a nature reserve or other protected area;
(iii) for environmental education of the public; or
(iv) generally to promote conservation.
Md. Code, Tax - Property § 7-306
Property is not subject to State property tax if the property:
(1) is owned by The Maryland State Game and Fish Protective Association, Inc.; and
(2) is used to educate the public on hunting safety.
Md. Code, Tax - Property § 7-307
(a) Subject to subsection (b) of this section, real property is not subject to State property tax if:
(1) the homeowner is otherwise eligible for the credit allowed under § 9-105 of this article;
(2) (i) the dwelling is:
1. damaged or destroyed due to a natural disaster; and
2. subsequently repaired or reconstructed;
(ii) the dwelling is revalued after the dwelling is repaired or reconstructed; and
(iii) as a result of the revaluation, the assessment of the dwelling exceeds the last assessment of the dwelling; and
(3) the homeowner claiming the exemption had a legal interest in the dwelling at the time the dwelling was damaged or destroyed as described under item (2) of this subsection.
(b) The property tax exemption under this section only applies for a taxable year in which a property tax credit for the property described in subsection (a) of this section is granted by the governing body of a county or municipal corporation under § 9-109 of this article and applies only to the extent that the credit is granted.
Md. Code, Tax - Property § 7-401
Rolling stock of any person other than a person assessed under § 8-108 of this article is not subject to a county or municipal corporation property tax.
Md. Code, Tax - Property § 7-501
(a) The governing body of Allegany County, Anne Arundel County, Montgomery County, or Washington County or the governing body of a municipal corporation in those counties may authorize, by law, an exemption from county or municipal corporation property tax for the property that is described in § 6–102(e) of this article.
(b) Except for an interest in federal enclave property as defined in § 7–211.3 of this title, in all counties except Worcester County, the governing body of the county or of a municipal corporation in those counties or the Mayor and City Council of Baltimore City may authorize, by law, an exemption from county or municipal corporation property tax for the property described in § 6–102(e) of this article and provide for a negotiated payment in lieu of the tax.
(c) Notwithstanding subsections (a) and (b) of this section, the assessment of any property exempted under subsections (a) and (b) of this section shall be included in the assessable base of the county or municipal corporation to determine the amount of any State aid that is based on the assessable base of the county or municipal corporation.
Md. Code, Tax - Property § 7-502
(a) (1) In this subsection, “essential service facilities” includes dining halls, community rooms, and infirmaries.
(2) Real property that meets the requirements of subsection (b) of this section is not subject to property tax if:
(i) the owner of the real property is:
1. a person who meets the ownership requirements of § 7-202 of this title; or
2. a nonprofit corporation that is exempt from income tax under § 10-104 of the Tax - General Article; and
(ii) the owner of the real property is engaged solely in constructing, operating, or managing multifamily rental housing and other related essential service facilities that:
1. are newly constructed on and after September 24, 1959;
2. are financed for at least 95% of the cost from loan funds provided under the National Housing Act of 1959 for senior citizen housing programs; and
3. are operated on a nonprofit basis with the revenues from the operation of the housing and facilities controlled by the loan program in order not to produce any net income.
(b) The real property described in subsection (a) of this section may be exempt from property tax only if:
(1) the governing body of the subdivision where the real property is located approves an agreement between the subdivision and the owner; and
(2) under the agreement the owner pays the subdivision a negotiated amount in lieu of property tax.
(c) An agreement under subsection (b) of this section may provide for abating or reducing property tax previously imposed on the real property.
(d) Any payment negotiated under this section in lieu of the property tax shall be divided between the State and the subdivision, in the ratio that the tax rate of the State and the subdivision each bears to the total of the tax rates of the State and the subdivision.
Md. Code, Tax - Property § 7-503
(a) (1) In this subsection, “essential service facilities” includes dining halls, community rooms, and infirmaries.
(2) Real property that meets the requirements of subsection (b) of this section is not subject to property tax if the owner of the real property is:
(i) 1. A. a person who meets the ownership requirements of § 7–202 of this title;
B. a nonprofit corporation that is exempt from income tax under § 10–104 of the Tax – General Article;
C. a limited liability company that is wholly owned by a nonprofit corporation that is exempt from income tax under § 10–104(2) of the Tax – General Article; or
D. a nonprofit housing corporation as defined in § 12–104(b) of the Housing and Community Development Article; and
2. engaged solely in constructing, operating, or managing rental housing and other related essential service facilities that:
A. are substantially completed or substantially rehabilitated on and after July 1, 1973, or, in Montgomery County, substantially completed or substantially rehabilitated on and after January 1, 1968;
B. are partially or totally financed under a government program that provides housing for low income families; and
C. are operated on a nonprofit basis with the revenues from the operation of the housing and facilities controlled under the government program in order not to produce any net income; or
(ii) 1. a limited partnership whose managing general partner is:
A. a housing authority as defined in § 12–101 of the Housing and Community Development Article;
B. a nonprofit corporation that is exempt from income tax under § 10–104(2) of the Tax – General Article;
C. a limited liability company that is wholly owned by a nonprofit corporation that is exempt from income tax under § 10–104(2) of the Tax – General Article; or
D. a for profit corporation in which 100% of the stock is owned by a nonprofit corporation that is exempt from income tax under § 10–104(2) of the Tax – General Article; and
2. engaged in the operation, construction, or management of a qualified low income housing project as defined in the Internal Revenue Code.
(b) The real property described in subsection (a) of this section may be exempt from property tax only if:
(1) the governing body of the political subdivision where the real property is located approves an agreement between:
(i) the political subdivision and the owner for real property described in subsection (a)(2)(i)1A, B, and C and (a)(2)(ii)1B, C, and D of this section; or
(ii) the county and, where applicable, municipal corporation and the owner for real property described in subsection (a)(2)(i)1D and (a)(2)(ii)1A of this section; and
(2) under the agreement the owner pays the political subdivision or the county and, where applicable, municipal corporation a negotiated amount in lieu of the property tax.
(c) (1) Except as provided under paragraph (2) of this subsection, an agreement under subsection (b) of this section may provide for abating or reducing property tax previously imposed on the real property.
(2) For an agreement concerning real property described under subsection (a)(2)(i)1D of this section, the abatement or reduction of property tax previously imposed is from the date during the taxable year when the instrument transferring title to that real property was recorded.
(d) (1) For property described in subsection (a)(2)(i)1 and 2 of this section, any amount negotiated under this section in lieu of the property tax shall be divided between the State and the political subdivision in the ratio that the tax rate of the State, and the political subdivision each bears to the total of the tax rates of the State and the political subdivision.
(2) For property described in subsection (a)(2)(i)1D of this section, any amount negotiated under this section in lieu of property tax shall be divided between the county and, where applicable, the municipal corporation in the ratio that the tax rate of the county and municipal corporation each bears to the total of the tax rates of the county and municipal corporation. The payment to the county and, where applicable, the municipal corporation may not exceed an amount equal to property tax imposed on similar property.
Md. Code, Tax - Property § 7-504
(a) (1) In this subsection, “service facilities” includes nondwelling commercial and community facilities, community rooms, dining halls, and infirmaries.
(2) Real property is exempt from Baltimore City property tax if:
(i) the real property is exempted under the express terms of an approved urban renewal land disposition agreement;
(ii) the real property is exempted by an agreement in effect on or after July 1, 1976, with the Mayor and City Council of Baltimore, which agreement provides for the owner to pay a negotiated sum in lieu of Baltimore City property tax;
(iii) the real property is owned by:
1. a limited distribution partnership; or
2. a limited distribution partnership that:
A. acquires equitable ownership to receive substantial financial assistance; and
B. is approved by the United States Department of Housing and Urban Development and any other appropriate government agency; and
(iv) the structures and facilities of the property are governmentally controlled as to rents, charges, rates of return, and methods of operation so that the real property operates on a nonprofit or limited distribution basis.
(3) If the structure and facilities of the real property are used predominantly for residential purposes, the real property may contain service facilities to serve its occupants and the surrounding neighborhood.
(b) The real property described in subsection (a) of this section is exempt from Baltimore City property tax when the owner of the real property and the governing body of Baltimore City agree on the payment that the owner shall make to Baltimore City in lieu of Baltimore City property tax on the real property.
(c) (1) Except as provided in paragraph (2) of this subsection, an agreement under subsection (b) of this section may provide for abating or reducing Baltimore City property tax previously imposed on the real property if the agreed payment in lieu of Baltimore City property tax is made for any period for which the tax is abated or reduced.
(2) Baltimore City property tax on the real property from before the July 1, 1976 taxable year may not be abated or reduced.
Md. Code, Tax - Property § 7-504.2
§7–504.2.
(a) In this section, “Downtown Management District” means the district whose boundaries are set forth in Article II, § 61(a)(2)(i) of the Baltimore City Charter.
(b) Vacant and underutilized commercial buildings that are under a development plan are exempt from county property tax if:
(1) the real property is located in the Downtown Management District;
(2) the real property meets two of the following criteria:
(i) the improvement on the property is over 25 years old;
(ii) the property was last used as commercial space with accessory uses; or
(iii) the property has been at least 75% vacant for more than 3 years;
(3) the real property is owned by a person who:
(i) is engaged in constructing and operating housing structures or projects, including nondwelling commercial and community facilities;
(ii) provides a minimum of $500,000 of private capital in the development of the residential portion of the project;
(iii) renovates the real property so that at least 75% of the total leasable square footage of the building is used for rental residential housing; and
(iv) demonstrates to the satisfaction of the Board of Estimates of Baltimore City the financial necessity for an agreement as authorized by this section; and
(4) the owner of the real property and the Baltimore City Board of Estimates agree on the payment that the owner shall make to Baltimore City in lieu of the county property taxes.
(c) Real property that qualifies for an exemption under this section is exempt from county property tax to the extent that the parties agree under subsection (b) of this section.
Md. Code, Tax - Property § 7-504.3
§7–504.3.
(a) In this section, “economic development project” means a real estate development project for which a payment in lieu of taxes agreement was entered into prior to June 30, 1999, in accordance with former § 7–504.1 of this subtitle as enacted by Chapter 403 of the Acts of 1996, or that consists of newly constructed or rehabilitated commercial or multifamily residential property if the real estate development project:
(1) had a certificate of occupancy as of January 1, 1999 or will have a certificate of occupancy issued on or after January 1, 1999; and
(2) includes at least one of the following:
(i) a hotel that:
1. provides at least 100 full–time equivalent job opportunities; and
2. has a private capital investment of equity and debt combined of at least $20,000,000;
(ii) an office building that:
1. provides at least 150 full–time equivalent job opportunities; and
2. has a private capital investment of equity and debt combined of at least $20,000,000;
(iii) a retail facility that:
1. provides at least 100 full–time equivalent job opportunities; and
2. has a private capital investment of equity and debt combined of at least $10,000,000;
(iv) a multifamily residential facility that has a private capital investment of equity and debt combined of at least $5,000,000;
(v) an off–street parking facility that:
1. contains at least 250 parking spaces; and
2. has a private capital investment of equity and debt combined of at least $2,500,000; or
(vi) a mixed–use facility that contains one or more of the facilities described in items (i) through (v) of this item, at least one of which satisfies the minimum criteria set forth in item (i), (ii), (iii), (iv), or (v) of this item.
(b) An economic development project is exempt or partially exempt from Baltimore City real property tax if:
(1) the owner or owners of the economic development project demonstrate to the satisfaction of the Board of Estimates of Baltimore City:
(i) that the City of Baltimore or its designated agency has conducted an economic analysis of the project including:
1. a detailed description of the project and the development budget including the identification of all sources of debt and equity financing;
2. a multiyear cash flow proforma of the project detailing all incoming and outgoing cash flow including revenues, operating expenses, debt service, taxes, capital expenditures and any other cash outlays;
3. the projected return on investment for the owner;
4. a determination that the project is an economic development project meeting the requirements of this section; and
5. any other relevant analysis;
(ii) the public benefit that the project will provide, including:
1. the number of jobs expected to be created, directly or indirectly, as a result of the project and the percentage of those jobs expected to be held by residents of Baltimore City;
2. the wage rates and benefit packages for the jobs expected to be created;
3. other tax revenues of Baltimore City, exclusive of real property taxes, that the project is expected to generate during the term of the payment in lieu of taxes agreement, including admissions and amusement, personal property, hotel, parking, utility, and other taxes;
4. the encouragement of economic development;
5. the general promotion and improvement of Baltimore City and its facilities; and
6. any other relevant benefits;
(iii) the financial necessity for an exemption as authorized under this section; and
(iv) that the private capital being invested in the economic development project includes an equity investment that is:
1. commensurate with the overall undertaking; and
2. A. at least 10% of the combined equity and debt investment in the case of a hotel facility or an office building facility; or
B. at least $250,000 in the case of a multifamily residential facility or an off–street parking facility;
(2) the Mayor and City Council of Baltimore City have authorized the project by a resolution that stipulates that the project will not involve gambling activities:
(i) beyond those gambling activities allowed by law as of January 1, 1999; or
(ii) related to any game not authorized by the Maryland State Lottery;
(3) the owner or owners of the economic development project and the Baltimore City Board of Estimates enter into a payment in lieu of taxes agreement specifying:
(i) an amount that the owner or owners shall pay to Baltimore City each year in lieu of the payment of Baltimore City real property taxes during the term of the agreement that is not less than:
1. except as provided in item 3 of this item, for an economic development project that is newly constructed or rehabilitated commercial or multifamily property, the sum of the taxes on the property before the construction or rehabilitation of the project and 5% of the Baltimore City real property taxes related to the economic development project that would have otherwise been due absent the agreement;
2. except as provided in item 3 of this item, for an economic development project that was the subject of a payment in lieu of taxes agreement prior to June 30, 1999, in accordance with former § 7–504.1 of this subtitle as enacted by Chapter 403 of the Acts of 1996, 5% of the Baltimore City real property taxes related to the economic development project that would have otherwise been due absent the agreement; or
3. for an economic development project for which a building permit is issued prior to September 30, 1999, the taxes on the property before the construction or rehabilitation of the project;
(ii) the term of the agreement, not to exceed 25 years from the date a certificate of occupancy for the project is issued; and
(iii) that each year after the expiration of the agreement, full property taxes shall be payable on the property; and
(4) prior to or no later than 18 months from the date of entering into the payment in lieu of taxes agreement, construction of the project has commenced and all conditions for the financing required for the construction of the project have been satisfied or waived.
(c) An economic development project is exempt or partially exempt from Baltimore City real property tax as the parties agree under subsection (b) of this section.
(d) On or before January 1 of each year, the City of Baltimore or its designated agency shall report to the President of the City Council of Baltimore and, subject to § 2–1257 of the State Government Article, to the General Assembly of Maryland:
(1) a description of each project for which the City entered into a payment in lieu of taxes agreement under this section during the prior fiscal year, including a statement of the analysis of the project described in subsection (b)(1) of this section; and
(2) for those projects that have a payment in lieu of taxes agreement and for which construction or rehabilitation has been completed:
(i) the number and types of jobs created during the preceding fiscal year and estimated to be created during the following fiscal year;
(ii) the total taxes that the project is estimated to have generated, directly and indirectly, for the City of Baltimore during the preceding fiscal year and estimated to be generated during the following fiscal year; and
(iii) any other economic benefits of the project.
Md. Code, Tax - Property § 7-504.4
§7–504.4.
(a) (1) In this section the following words have the meanings indicated.
(2) “Hippodrome Performing Arts Center facility” means the Hippodrome Performing Arts facility as defined in § 10–601 of the Economic Development Article.
(3) “Hippodrome Performing Arts Center site” means the Hippodrome Performing Arts site as defined in § 10–601 of the Economic Development Article.
(b) The Hippodrome Performing Arts Center site and the Hippodrome Performing Arts Center facility are subject to property taxes unless:
(1) such properties are used principally as a performing arts center; and
(2) the owner of such properties and the Baltimore City Board of Estimates agree on a payment that the owner shall make to Baltimore City in lieu of Baltimore City real property taxes.
Md. Code, Tax - Property § 7-505
(a) (1) In this subsection, “service facilities” includes nondwelling commercial and community facilities, community rooms, dining halls, and infirmaries.
(2) Except in Baltimore City, real property is exempt from county and municipal corporation property tax if:
(i) the real property is owned by a person engaged in constructing or operating housing structures or projects;
(ii) the real property is used for a housing structure or project that:
1. is constructed or substantially rehabilitated under a federal, State, or local government program that:
A. funds construction or insures its financing; or
B. provides interest subsidy, rent subsidy, or rent supplements; and
2. is substantially completed after July 1, 1978;
(iii) the structures and facilities of the real property are governmentally controlled as to rents, charges, rates of return, and methods of operation so that the real property operates on a nonprofit or limited distribution basis; and
(iv) the owner and the governing body of the county and, where applicable, municipal corporation where the real property is located agree that the owner shall pay a negotiated amount in lieu of the applicable county and municipal corporation property tax.
(3) If the structure and facilities of the real property are used predominantly for residential purposes, the real property may contain service facilities to serve its occupants and the surrounding neighborhood.
(b) Real property described in subsection (a) of this section is exempt when the requirements of subsection (a) of this section are met.
Md. Code, Tax - Property § 7-506
(a) (1) In this subsection, “service facilities” includes nondwelling commercial and community facilities, community rooms, dining halls, and infirmaries.
(2) In this subsection, “urban renewal area”:
(i) means an urban renewal project that is acquired and disposed of by the Mayor and City Council of Baltimore City under the Baltimore City Charter, Article II(15); and
(ii) does not include the Madison Park North, the Madison Park South, and the Mount Vernon projects.
(3) Real property is exempt from Baltimore City property tax if:
(i) the real property is located in an urban renewal area;
(ii) the real property is owned by a person engaged in constructing and operating housing structures or projects; and
(iii) the real property is used for a housing structure or project that:
1. is substantially constructed or rehabilitated on and after July 1, 1973; and
2. is governmentally controlled as to rents, charges, rates of return, and methods of operation so that the real property operates on a nonprofit or limited distribution basis; and
(iv) the owner of the real property and the Baltimore City Board of Estimates agree on the payment that the owner shall make to Baltimore City in lieu of Baltimore City property taxes.
(4) If the structure and facilities of the property are used predominantly for residential purposes, the real property may contain service facilities to serve its occupants and the surrounding neighborhood.
(b) Real property described in subsection (a) of this section is exempt from Baltimore City property tax as the parties agree under subsection (a) of this section.
(c) Subject to § 2–1257 of the State Government Article, annually on or before February 1, Baltimore City shall report to the General Assembly on the effect and operation of all agreements adopted during the previous year under this section.
Md. Code, Tax - Property § 7-506.1
§7–506.1.
(a) (1) In this subsection, “service facilities” includes nondwelling commercial and community facilities, community rooms, dining halls, infirmaries, child and adult day care facilities, and drug rehabilitation facilities.
(2) Except in Baltimore City, real property may be exempt from county and municipal corporation property tax if:
(i) the real property is owned by a person engaged in constructing or operating housing structures or projects;
(ii) the real property is used for a housing structure or project that is constructed or substantially rehabilitated under a federal, State, or local government program that:
1. funds construction or insures its financing in whole or in part; or
2. provides interest subsidy, rent subsidy, or rent supplements;
(iii) the owner and the governing body of the county and, where applicable, the municipal corporation where the real property is located agree that the owner shall pay a negotiated amount in lieu of the applicable county or municipal corporation property tax; and
(iv) the owner of the real property:
1. A. agrees to continue to maintain the real property as rental housing for lower income persons under the requirements of the government programs described in paragraph (2)(ii) of this subsection; and
B. agrees to renew any annual contributions contract or other agreement for rental subsidy or supplement; or
2. enters into an agreement with the governing body of the county or municipal corporation to allow the entire property or the portion of the property which was maintained for lower income persons to remain as housing for lower income persons for a term of at least 5 years.
(3) If the structure and facilities of the real property are used predominantly for residential purposes, the real property may contain service facilities to serve its occupants and the surrounding neighborhood.
(b) Real property described in subsection (a) of this section is exempt when the requirements of subsection (a) of this section are met.
Md. Code, Tax - Property § 7-506.2
§7–506.2.
(a) Real property may be exempt from municipal corporation property tax if:
(1) the real property is owned by:
(i) a former tenant of the real property;
(ii) an association of tenants or former tenants of the real property;
(iii) an entity in which former tenants or an association of tenants or former tenants holds a majority interest; or
(iv) a cooperative housing corporation that:
1. operates on a nonprofit basis;
2. operates on a limited equity basis; or
3. is subject to controls on the corporation’s rates of return;
(2) the owner and the governing body of the municipal corporation where the real property is located agree that the owner shall pay a negotiated amount in lieu of the applicable municipal corporation property tax; and
(3) the owner of the real property agrees to maintain at least 10% of the total number of residential units as housing for low to moderate income households, as set forth in an agreement between the owner and the governing body of the municipal corporation where the real property is located.
(b) Real property described in subsection (a) of this section is exempt when the requirements of subsection (a) of this section are met.
Md. Code, Tax - Property § 7-506.3
§7–506.3.
(a) (1) In this subsection, “service facilities” includes nondwelling commercial and community facilities, community rooms, dining halls, infirmaries, child and adult day care facilities, and drug rehabilitation facilities.
(2) In Prince George’s County, real property may be exempt from county property tax if:
(i) the real property is owned by a person engaged in constructing or operating housing structures or projects;
(ii) the real property is used for a housing structure or project that:
1. is acquired, constructed, or rehabilitated under a federal, State, or local government program that:
A. funds construction or rehabilitation or insures the financing of construction or rehabilitation in whole or in part, including a housing investment trust; or
B. provides interest subsidy, rent subsidy, or rent supplements;
2. is acquired or financed under the Right of First Refusal program under Subtitle 13, Division 14 of the Prince George’s County Code; or
3. is acquired, constructed, or rehabilitated for the purpose of operating rental housing for lower income persons;
(iii) the owner and the governing body of Prince George’s County agree that the owner shall pay a negotiated amount in lieu of the applicable county property tax; and
(iv) the owner of the real property:
1. A. agrees to commence or continue to maintain the real property as rental housing for lower income persons under the requirements of item (ii) of this paragraph; and
B. agrees to renew any annual contributions contract or other agreement for rental subsidy or supplement; or
2. enters into an agreement with the governing body of Prince George’s County to allow the entire property or the portion of the property that was maintained for lower income persons to remain as housing for lower income persons for a term of at least 5 years.
(3) If the structure and facilities of the real property are used predominantly for residential purposes, the real property may contain service facilities to serve its occupants and the surrounding neighborhood.
(b) Real property described in subsection (a) of this section is exempt when the requirements of subsection (a) of this section are met.
Md. Code, Tax - Property § 7-507
If the Mayor and City Council of Baltimore City or the governing body of a county or of a municipal corporation authorizes, by law, the stock in business consisting of foreign imports of a business engaged in importing is not subject to county or municipal corporation property tax if the foreign import is:
(1) in the possession of the business engaged in importing; and
(2) in its original package.
Md. Code, Tax - Property § 7-508
(a) In this section, “manufacturer” means a person who engages in at least 2 of the following processes:
(1) applies labor, skill, art, or science to materials;
(2) makes changes or modifications in existing material by processes usually considered as manufacturing;
(3) develops new forms, qualities, properties, or combinations of materials, or adapts materials to certain uses; or
(4) produces from materials a different kind of material with a new use.
(b) The governing body of Washington County may exempt the raw materials used in a manufacturing process and manufactured products in the possession of a manufacturer from the Washington County property tax.
Md. Code, Tax - Property § 7-509
(a) In this section, “warehouser” means a person engaged only in the business of warehousing merchandise as a distribution center and that the person does not have any retail or wholesale sales persons.
(b) The governing body of Washington County may exempt the stock in business of a warehouser from the Washington County property tax.
Md. Code, Tax - Property § 7-509.1
§7–509.1.
(a) (1) The governing body of Washington County may enter into an agreement with the owner of a technology–related business that is located or locates in Washington County for a negotiated payment by the owner in lieu of taxes on personal property owned by the technology–related business.
(2) An agreement for a negotiated payment in lieu of taxes under this section shall provide that, for the term specified in the agreement:
(i) the owner shall pay to Washington County a specified amount each year in lieu of the payment of Washington County personal property tax; and
(ii) all or a specified part of the personal property of the technology–related business shall be exempt from Washington County personal property tax for the term of the agreement.
(b) As specified in an agreement for a negotiated payment in lieu of taxes under this section, for the term specified in the agreement, the personal property of a technology–related business that is located or locates in Washington County is exempt from Washington County personal property tax.
Md. Code, Tax - Property § 7-510
In Calvert County, Caroline County, Cecil County, Kent County, or Queen Anne’s County, when authorized by the governing body of the county by law, 1 or more classes of the personal property of any commercial, manufacturing, or professional business that is actually used in the business, including furniture, fixtures, equipment, and supplies, is not subject to the county property tax.
Md. Code, Tax - Property § 7-511
(a) Subject to subsection (b) of this section, the governing body of Garrett County may reduce, by law, the percent of the assessment on one or more classes or subclasses of personal property listed under § 8-101 of this article.
(b) (1) If Garrett County reduces or eliminates the percentage of assessment of taxable personal property under subsection (a) of this section, Garrett County shall submit a copy of the law to the Department.
(2) If the Department receives a copy of the law on or before March 1, the change shall be effective for the taxable year following the date the law is enacted.
Md. Code, Tax - Property § 7-511.1
§7–511.1.
(a) In this section, “business incubator” has the meaning stated in § 9–247 of this article.
(b) The governing body of Garrett County may exempt from the county property tax real property that is:
(1) owned by the Garrett College Board of Trustees;
(2) known as the Garrett Information Enterprise Center; and
(3) used as a business incubator.
Md. Code, Tax - Property § 7-512
(a) (1) The governing body of Cecil County may enter into an agreement with the owner of a facility for the generation of electricity that locates in Cecil County for a negotiated payment by the owner in lieu of taxes on the facility.
(2) An agreement for a negotiated payment in lieu of taxes under this section shall provide that, for the term specified in the agreement:
(i) the owner shall pay to Cecil County a specified amount each year in lieu of the payment of Cecil County property tax; and
(ii) all or a specified part of the real and personal property at the facility shall be exempt from Cecil County property tax for the term of the agreement.
(b) As specified in an agreement for a negotiated payment in lieu of taxes under this section, for the term specified in the agreement, the real and personal property at a facility for the generation of electricity that locates in Cecil County is exempt from Cecil County property tax.
(c) Notwithstanding subsections (a) and (b) of this section, the assessment of any property exempted under this section shall be included in the assessable base of Cecil County for the purpose of computing any State aid to education under § 5-202 of the Education Article or other payments of State aid to the county that by law are based on the assessment of property.
Md. Code, Tax - Property § 7-513
(a) Subject to subsection (b) of this section, the governing body of Dorchester County may reduce, by law, the percent of the assessment of personal property other than operating personal property of a public utility.
(b) If the governing body of the county enacts a law reducing the assessment of personal property, personal property other than operating personal property of a public utility is subject to county property tax on:
(1) 90% of its value for the first taxable year beginning after enactment of the law;
(2) 80% of its value for the second taxable year beginning after enactment of the law;
(3) 70% of its value for the third taxable year beginning after enactment of the law;
(4) 60% of its value for the fourth taxable year beginning after enactment of the law;
(5) 50% of its value for the fifth taxable year beginning after enactment of the law;
(6) 40% of its value for the sixth taxable year beginning after enactment of the law;
(7) 30% of its value for the seventh taxable year beginning after enactment of the law;
(8) 20% of its value for the eighth taxable year beginning after enactment of the law;
(9) 10% of its value for the ninth taxable year beginning after enactment of the law; and
(10) 0% of its value for the tenth taxable year beginning after enactment of the law and for each taxable year thereafter.
Md. Code, Tax - Property § 7-514
(a) (1) The governing body of a county or a municipal corporation may enter into an agreement with the owner of a facility for the generation of electricity that is located or locates in the county or the municipal corporation for a negotiated payment by the owner in lieu of taxes on the facility.
(2) An agreement for a negotiated payment in lieu of taxes under this section shall provide that, for the term specified in the agreement:
(i) the owner shall pay to the county or municipal corporation a specified amount each year in lieu of the payment of county or municipal corporation real and personal property tax; and
(ii) all or a specified part of the real and personal property at the facility shall be exempt from county or municipal corporation property tax for the term of the agreement.
(b) As specified in the agreement for a negotiated payment in lieu of taxes under this section, for the term specified in the agreement, the real and personal property at a facility for the generation of electricity that is located or locates in the county or the municipal corporation is exempt from county or municipal corporation property tax.
(c) For each taxable year, Washington County shall distribute to the Town of Williamsport an amount equal to 35% of any amount received by the county under a negotiated payment in lieu of taxes under this section from an owner of an electricity generation facility that is located or locates in the Town of Williamsport.
Md. Code, Tax - Property § 7-515
(a) The governing body of Allegany County shall enter into an agreement with an owner or operator of a video lottery facility that locates in Allegany County for a negotiated payment in lieu of taxes on the video lottery facility.
(b) An agreement for a negotiated payment in lieu of taxes under this section shall provide that, for the term specified in the agreement:
(1) a specified amount shall be paid to Allegany County in lieu of the payment of Allegany County property tax; and
(2) all or a specified part of the real and personal property at the video lottery facility shall be exempt from Allegany County property tax for the term of the agreement.
Md. Code, Tax - Property § 7-516
(a) (1) In this section the following words have the meanings indicated.
(2) “Designated focus area” means:
(i) a transit–oriented development, defined as a development or project within one–half mile of a Washington Metropolitan Area Transit Authority transit station or one–half mile of a Maryland Area Regional Commuter transit station, as measured from the main entrance of the building to the nearest entrance of the transit station;
(ii) a revitalization tax credit district, as defined in § 10–235.02 of the Prince George’s County Code and designated by the governing body of Prince George’s County; or
(iii) an urban renewal area, as designated by the governing body of Prince George’s County.
(3) “Economic development project” means a real estate development project that consists of newly constructed or rehabilitated commercial property if the real estate development project:
(i) has a certificate of occupancy issued on or after October 1, 2012;
(ii) is located on one or more parcels of land, all of which are situated in a designated focus area; and
(iii) includes at least one of the following:
1. a hotel that:
A. provides at least 100 full–time equivalent job opportunities; and
B. has a private capital investment of equity and debt combined of at least $20,000,000;
2. an office building that:
A. provides at least 100 full–time equivalent job opportunities; and
B. has a private capital investment of equity and debt combined of at least $20,000,000;
3. a retail facility that:
A. provides at least 100 full–time equivalent job opportunities; and
B. has a private capital investment of equity and debt combined of at least $10,000,000;
4. an off–street parking facility that:
A. contains at least 250 parking spaces; and
B. has a private capital investment of equity and debt combined of at least $2,500,000; or
5. a mixed–use facility that contains one or more of the facilities described in items 1 through 4 of this item, at least one of which satisfies the minimum criteria set forth in item 1, 2, 3, or 4 of this item.
(b) The governing body of Prince George’s County, by resolution, may exempt or partially exempt an economic development project from the county real property tax if:
(1) the owner or owners of the economic development project demonstrate to the satisfaction of the County Executive and County Council of Prince George’s County:
(i) that the county or its designated agency has conducted an economic analysis of the project, including:
1. a detailed description of the project and the development budget, including the identification of all sources of debt and equity financing;
2. a multiyear cash flow pro forma of the project detailing all incoming and outgoing cash flow revenues, operating expenses, debt service, taxes, capital expenditures, and any other cash outlays;
3. the projected return on investment for the owner or owners;
4. a determination that the project is an economic development project that meets the requirements of this section; and
5. any other relevant analysis;
(ii) the public benefit that the project will provide, including:
1. the number of jobs expected to be created, directly or indirectly, as a result of the project and the percentage of those jobs expected to be held by Prince George’s County residents;
2. the wage rates and benefit packages for the jobs expected to be created;
3. other Prince George’s County tax revenues, exclusive of real property taxes, that the project is expected to generate during the term of the payment in lieu of taxes agreement, including income, admissions and amusement, personal property, hotel, parking, energy, and other taxes;
4. the encouragement of economic development;
5. the general promotion and improvement of Prince George’s County and its facilities;
6. the participation of local minority business enterprises and local business enterprises in the economic development project; and
7. any other relevant benefits;
(iii) the financial necessity for an exemption authorized under this section; and
(iv) that the private capital being invested in the economic development project includes an equity investment that is:
1. commensurate with the overall undertaking; and
2. A. for a hotel or an office building, an amount greater than or equal to 10% of the combined equity and debt investment; or
B. for an off–street parking facility, an amount greater than or equal to $250,000;
(2) the owner or owners of the economic development project and the governing body of Prince George’s County enter into a payment in lieu of taxes agreement or multiple payment in lieu of taxes agreements for different phases of the economic development project that specify:
(i) an amount that the owner or owners shall pay to the county each year in lieu of the payment of county real property taxes during the term of the agreement that is not less than the sum of:
1. the taxes on the property before the construction or rehabilitation of the project; and
2. 25% of the county real property taxes related to the economic development project that would have otherwise been due absent the agreement;
(ii) the term of the agreement, not to exceed 15 years from the date a certificate of occupancy is first issued for the project or the date a certificate of occupancy is first issued for any phase of the project that is covered by the agreement; and
(iii) that each year after the expiration of the agreement, full property taxes shall be payable on the property;
(3) prior to or no later than 18 months from the date of entering into the payment in lieu of taxes agreement, construction of the project or any phase of the project that is covered by the agreement has commenced and all conditions for the financing required for the construction of the project or phase of the project that is covered by the agreement have been satisfied or waived; and
(4) the authorizing resolution states that the project may not involve gambling activities.
(c) On or before January 1 of each year, the Prince George’s County Executive or the County Executive’s designated agency shall submit a report to the Prince George’s County Council and, in accordance with § 2–1257 of the State Government Article, to the Prince George’s County House and Senate Delegations of the General Assembly of Maryland that contains:
(1) a description of each project for which the county entered into a payment in lieu of taxes agreement under this section during the prior fiscal year, including a statement of:
(i) the basis on which each project met the requirements for the definition of an economic development project set forth in subsection (a) of this section; and
(ii) the analysis of the project described in subsection (b)(1) of this section; and
(2) for those projects that have a payment in lieu of taxes agreement and for which construction or rehabilitation has been completed:
(i) the number and types of jobs created during the preceding fiscal year and estimated to be created during the following fiscal year;
(ii) the total taxes that the project is estimated to have generated directly and indirectly for the county during the preceding fiscal year and estimated to be generated during the following fiscal year; and
(iii) any other economic benefits of the project.
Md. Code, Tax - Property § 7-517
(a) The governing body of Calvert County may enter into an agreement with the owner of a facility for the liquefaction of natural gas that is located or locates in the county for a negotiated payment by the owner in lieu of taxes on the facility.
(b) An agreement for a negotiated payment in lieu of taxes under this section shall provide that, for the term specified in the agreement:
(1) the owner shall pay to the county a specified amount each year in lieu of the payment of county real, operating real, personal, or operating personal property tax; and
(2) all or a specified part of the real, operating real, personal, or operating personal property at the facility shall be exempt from county property tax for the term of the agreement.
(c) As specified in an agreement for a negotiated payment in lieu of taxes under this section, for the term specified in the agreement, the real, operating real, personal, or operating personal property at a facility for the liquefaction of natural gas that is located or locates in the county is exempt from county property tax.
(d) On the written request of the governing body of Calvert County, the supervisor shall assess the real, operating real, personal, or operating personal property of the owner of a facility for the liquefaction of natural gas with whom the county has entered into a payment in lieu of taxes agreement under this section.
Md. Code, Tax - Property § 7-518
(a) In this section, “affordable housing land trust” and “affordable housing land trust agreement” have the meanings stated in § 14–501 of the Real Property Article.
(b) The governing body of Frederick County may exempt real property from the Frederick County property tax if the real property is:
(1) owned by an affordable housing land trust; and
(2) not subject to an affordable housing land trust agreement.
Md. Code, Tax - Property § 7-519
(a) (1) In this section the following words have the meanings indicated.
(2) “Community–managed open space” means a local park, garden, woods, or other predominantly undeveloped area that is utilized and cared for by the local community in a natural or cultivated state for the general benefit of the local community.
(3) “Community open space management entity” means a nonprofit organization that has a cooperative agreement with the Maryland Environmental Trust and the purposes of which are primarily to:
(i) preserve community–managed open spaces in fully developed areas;
(ii) acquire, sell, lease, transfer, manage, establish, or hold easements to parcels of land for use as community–managed open space in fully developed areas; and
(iii) encourage, support, and facilitate the participation of communities in the beautification, maintenance, and preservation of community–managed open spaces in fully developed areas.
(b) The Mayor and City Council of Baltimore City or the governing body of a county or municipal corporation may exempt property owned by a community open space management entity from the county or municipal property tax.
(c) The governing body of a county or municipal corporation may enact regulations, procedures, and any other provision necessary to carry out the exemption under this section.
Md. Code, Tax - Property § 7-520
(a) (1) In this section the following words have the meanings indicated.
(2) “Economic development project” means a real estate development project in Anne Arundel County that consists of newly constructed or rehabilitated commercial property if the property has not been the subject of a condemnation or eminent domain proceeding undertaken for purposes related to the project.
(3) “Public benefit” means a unique and quantifiable service to be provided by the economic development project for the benefit of schools, public safety, or other local government services beyond that which would arise generally from a private business development project.
(b) The governing body of Anne Arundel County may exempt or partially exempt an economic development project from the county real or personal property tax if:
(1) the owner of the economic development project demonstrates to the satisfaction of the Anne Arundel County Executive and County Council of Anne Arundel County that the project is an economic development project that provides a public benefit; and
(2) on or before June 30, 2020, the owner of the economic development project and the county enter into a payment in lieu of taxes agreement, approved by ordinance of the County Council, that specifies:
(i) any amount that the owner of the economic development project shall pay to the county each year in lieu of the payment of county real or personal property taxes during the term of the agreement;
(ii) any services that the economic development project shall provide to the county each year of the term of the payment in lieu of taxes agreement;
(iii) the term of the agreement; and
(iv) that each year after the expiration or termination of the agreement, full real and personal property taxes shall be payable on the property.
(c) The owner of the economic development project and the county may modify any payment in lieu of taxes agreement entered into on or before June 30, 2020, if the modification is approved by ordinance of the County Council.
Md. Code, Tax - Property § 7-521
(a) In this section, “moderate income” and “moderate income housing unit” have the meanings stated in Title 13, Subtitle 4 of the Howard County Code.
(b) In Howard County, real property may be exempt from county property tax if:
(1) the owner of the real property and the governing body of Howard County agree that the owner shall pay a negotiated amount in lieu of the county property tax; and
(2) the owner of the real property enters into an agreement with the governing body of Howard County to maintain a number of residential units located at the real property as housing for moderate income households that exceeds the minimum number of moderate income housing units required by local zoning laws in effect on the date of the agreement.
(c) Real property described in subsection (b) of this section is exempt when the requirements of subsection (b) of this section are met.
(d) (1) The County Executive of Howard County:
(i) shall publish on the county’s website the methodology to be used for calculating the negotiated payment amount for an agreement authorized under subsection (b) of this section; and
(ii) subject to paragraph (3) of this subsection, may revise at any time the methodology published under this paragraph.
(2) At least once every 5 years, the County Executive of Howard County shall reevaluate the methodology to be used for calculating a negotiated payment amount for a potential agreement authorized under subsection (b) of this section.
(3) If any revisions are made under paragraph (1)(ii) or (2) of this subsection to the most recently published methodology, the County Executive of Howard County shall publish the revised methodology on the county’s website.
(e) The governing body of Howard County may not enter an agreement authorized under subsection (b) of this section unless the negotiated payment amount for the agreement was determined in accordance with the methodology most recently published on the county’s website.
Md. Code, Tax - Property § 7-522
(a) In this section, “affordable dwelling unit” has the meaning stated in § 7–501 of the Land Use Article.
(b) Real property that is used for rental housing may be exempt from county property tax if:
(1) the owner of the real property and the governing body of the county agree that the owner shall pay a negotiated amount in lieu of the county property tax; and
(2) the owner of the real property enters into an agreement with the governing body of the county to maintain at least 25% of the rental housing units located at the real property as affordable dwelling units for a period of at least 15 years.
(c) In an agreement under this section, the governing body of the county may require the owner of real property to maintain a higher percentage of rental housing units as affordable dwelling units than the minimum percentage specified in subsection (b)(2) of this section.
(d) Real property described in subsection (b) of this section is exempt when the requirements of subsection (b) of this section are met.
Md. Code, Tax - Property § 7-523
(a) The governing body of a county may enter into an agreement with a broadband services provider located in the county for a negotiated payment by the provider in lieu of taxes on property located in the county and owned by the provider.
(b) An agreement for a negotiated payment in lieu of taxes under this section shall provide that, for the term specified in the agreement:
(1) the provider shall pay to the county a specified amount each year in lieu of the payment of county real and personal property tax; and
(2) all or a specified part of the provider’s real and personal property located in the county shall be exempt from county property tax for the term of the agreement.
(c) As specified in an agreement for a negotiated payment in lieu of taxes under this section, for the term specified in the agreement, the provider’s real and personal property located in the county is exempt from county property tax.
Md. Code, Tax - Property § 7-524
Notwithstanding the exemption from property tax under § 7–251 of this title, The Hagerstown Multi–Use Sports and Events Facility, Inc. may pay to the governing body of Washington County or the City of Hagerstown an amount, if any, that may be set by mutual agreement in lieu of the taxes that would otherwise be due on all or part of the facility.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026