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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0651*
HOUSE BILL 651
Q1, Q2, Q3 6lr2028
HB 1286/25 – W&M
By: Delegates R. Long, Ciliberti, and Tomlinson
Introduced and read first time: January 30, 2026
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Tax Exemptions – Individuals Detained or Taken Hostage Abroad 2
FOR the purpose of exempting from taxation the income of a certain individual detained or 3
taken hostage abroad during the taxable year and the spouse of that individual; 4
exempting from property tax certain property that is owned by an individual 5
detained or taken hostage abroad or the spouse of that individual, subject to certain 6
limitations; and generally relating to tax exe mptions for individuals detained or 7
taken hostage abroad and the spouses of those individuals. 8
BY repealing and reenacting, without amendments, 9
Article – Tax – General 10
Section 1–101(a) and (g) 11
Annotated Code of Maryland 12
(2022 Replacement Volume and 2025 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Tax – General 15
Section 10–104 16
Annotated Code of Maryland 17
(2022 Replacement Volume and 2025 Supplement) 18
BY adding to 19
Article – Tax – General 20
Section 10–110 21
Annotated Code of Maryland 22
(2022 Replacement Volume and 2025 Supplement) 23
BY adding to 24
Article – Tax – Property 25
Section 7–252 26
Annotated Code of Maryland 27
2 HOUSE BILL 651
(2019 Replacement Volume and 2025 Supplement) 1
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 2
That the Laws of Maryland read as follows: 3
Article – Tax – General 4
1–101. 5
(a) In this article the following words have the meanings indicated. 6
(g) “Department” means the State Department of Assessments and Taxation. 7
10–104. 8
The income tax does not apply to the income of: 9
(1) a common trust fund, as defined in § 3 –501(b) of the Financial 10
Institutions Article; 11
(2) except as provided in §§ 10 –101(e)(3) of this subtitle and 10 –304(2) of 12
this title, an organization that is exempt from taxation under § 408(e )(1) or § 501 of the 13
Internal Revenue Code; 14
(3) a financial institution that is subject to the financial institution 15
franchise tax; 16
(4) a person subject to taxation under Title 6 of the Insurance Article; 17
(5) except as provided in § 10 –102.1 of th is subtitle, a partnership, as 18
defined in § 761 of the Internal Revenue Code; 19
(6) except as provided in § 10–102.1 of this subtitle and § 10–304(3) of this 20
title, an S corporation; 21
(7) except as provided in § 10–304(4) of this title, an investment conduit or 22
a special exempt entity; [or] 23
(8) except as provided in § 10 –102.1 of this subtitle, a limited liability 24
company as defined under Title 4A of the Corporations and Associations Article to the 25
extent that the company is taxable as a partnership, as defined in § 761 of the Internal 26
Revenue Code; OR 27
(9) (I) AN INDIVIDUAL DETAINED OR TAKEN HOSTAGE ABROAD, AS 28
DEFINED UNDER § 10–110 OF THIS SUBTITLE; AND 29
HOUSE BILL 651 3
(II) THE SPOUSE OF AN INDIVIDUAL DESCRIBED UNDER ITEM (I) 1
OF THIS ITEM. 2
10–110. 3
(A) IN TH IS SECTION , “INDIVIDUAL DETAINED OR TAKEN HOSTAGE 4
ABROAD” MEANS A UNITED STATES NATIONAL WHO , DURING THE TAXABLE Y EAR, 5
IS: 6
(1) UNLAWFULLY OR WRONGF ULLY DETAINED ABROAD , AS 7
DETERMINED UNDER § 302 OF THE ROBERT LEVINSON HOSTAGE RECOVERY AND 8
HOSTAGE–TAKING ACCOUNTABILITY ACT; OR 9
(2) TAKEN HOSTAGE ABROAD, AS DETERMINED UNDER § 304 OF THE 10
ROBERT LEVINSON HOSTAGE RECOVERY AND HOSTAGE–TAKING 11
ACCOUNTABILITY ACT. 12
(B) THE COMPTROLLER, IN COLLABORATION WIT H THE DEPARTMENT, 13
SHALL: 14
(1) REGULARLY CONTACT TH E U.S. DEPARTMENT OF STATE FOR 15
INFORMATION ON INDIVIDUALS DETAINED OR TAKEN HOSTAGE ABROAD; 16
(2) MAINTAIN A LIST OF INDIVIDUALS IDENTIFIED UNDER ITEM (1) OF 17
THIS SUBSECTION; AND 18
(3) SHARE THE LIST PREPA RED IN ACCORDANCE WI TH ITEM (2) OF 19
THIS SUBSECTION WITH THE COLLECTOR FOR EACH COUNTY, AS DEFINED UNDER § 20
1–101 OF THE TAX – PROPERTY ARTICLE. 21
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 22
as follows: 23
Article – Tax – Property 24
7–252. 25
(A) IN THIS SECTION , “INDIVIDUAL DETAINED OR TAKEN HOSTAGE 26
ABROAD” HAS THE MEANING STATED IN § 10–110 OF THE TAX – GENERAL ARTICLE. 27
(B) PROPERTY IS NOT SUBJECT TO PROPERTY TAX IF THE PROPERTY: 28
(1) IS OWNED BY: 29
4 HOUSE BILL 651
(I) AN INDIVIDUAL DETAINED OR TAKEN HOSTAGE ABROAD; OR 1
(II) THE SPOUSE OF AN IND IVIDUAL DETAINED OR TAKEN 2
HOSTAGE ABROAD; AND 3
(2) (I) IS ACTUALLY AND EXCL USIVELY USED BY THE SPOUSE OF 4
AN INDIVIDUAL DETAINED OR TAKEN HOSTAGE ABROAD; OR 5
(II) WAS ACTUALLY AND EXCLUSIVELY USED BY AN INDIVIDUAL 6
DETAINED OR TAKEN HOSTAGE ABROAD UNTIL THE INDIVIDUAL WAS WRONGFULLY 7
DETAINED OR TAKEN HOSTAGE. 8
(C) AN EXEMPTION UNDER THIS SECTION SHALL BE GRANTED IN ADDITION 9
TO ANY OTHER EXEMPTION AUTHORIZED BY LAW. 10
(D) THE GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY 11
AUTHORIZE, BY LAW , A REFUND TO AN INDIV IDUAL WHO IS ELIGIBL E FOR THE 12
EXEMPTION UNDER THIS SECTION FOR ANY COUNTY OR MUNICIPAL CORPORATION 13
PROPERTY TAX PAID IN THE TAXABLE YEARS IN WHICH AN EXEMPTION W AS 14
AUTHORIZED BUT NOT GRANTED. 15
SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall be 16
applicable to all taxable years beginning after December 31, 2025. 17
SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 18
applicable to all taxable years beginning after June 30, 2026. 19
SECTION 5. AND BE IT FURTHER ENACTED, That this Act shall take effect June 20
1, 2026. 21