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*hb1232*
HOUSE BILL 1232
Q1 EMERGENCY BILL (6lr3403)
ENROLLED BILL
— Ways and Means/Budget and Taxation —
Introduced by Delegate Edelson (By Request – Baltimore City Administration) and
Delegates Amprey, Boyce, Embry, Lewis, and Stinnett
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Baltimore City – Economic Development Project in Downtown RISE District – 2
Payment in Lieu of Taxes 3
FOR the purpose of exempting an economic development project located in a certain area 4
of downtown Baltimore City from Baltimore City property taxes if the owner of the 5
economic development project and the Baltimore City Board of Estimates enter into 6
a payment in lieu of taxes agreement and certain other requirements are met; and 7
generally relating to a payment in lieu of taxes agreement for an economic 8
development project in downtown Baltimore City. 9
BY adding to 10
Article – Tax – Property 11
Section 7–504.5 12
Annotated Code of Maryland 13
2 HOUSE BILL 1232
(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 – Property 4
7–504.5. 5
(A) IN THIS SECTION, “ECONOMIC DEVELOPMENT PROJECT” MEANS A REAL 6
ESTATE DEVELOPMENT P ROJECT THAT CONSISTS OF NEWLY CONSTRUCTED OR 7
REHABILITATED COMMERCIAL OR MULTIFAMILY RESIDENTIAL PROPERTY IF THE 8
REAL ESTATE DEVELOPMENT PROJECT: 9
(1) EXISTS WITHIN THE DOWNTOWN RISE DISTRICT AS DESCRIBED 10
IN SUBSECTION (B) OF THIS SECTION; AND 11
(2) INCLUDES AT LEAST ONE OF THE FOLLOWING: 12
(I) A HOTEL; 13
(II) AN OFFICE BUILDING; 14
(III) A RETAIL FACILITY; 15
(IV) A MULTIFAMILY RESIDENTIAL FACILITY; OR 16
(V) A MIXED–USE FACILITY THAT CO NTAINS ONE OR MORE O F 17
THE FACILITIES DESCRIBED IN ITEMS (I) THROUGH (IV) OF THIS ITEM. 18
(B) THE DOWNTOWN RISE DISTRICT CONSISTS OF: 19
(1) WARD 4, PRECINCT 1; 20
(2) WARD 4, PRECINCT 2; 21
(3) WARD 4, PRECINCT 3; 22
(4) WARD 22, PRECINCT 1; 23
(5) WARD 22, PRECINCT 2; AND 24
(6) WARD 21, PRECINCT 5. 25
HOUSE BILL 1232 3
(C) AN ECONOMIC DEVELOPME NT PROJECT IS EXEMPT OR PARTIALLY 1
EXEMPT FROM BALTIMORE CITY REAL PROPERTY TAX IF: 2
(1) THE OWNER OF THE ECONOMI C DEVELOPMENT PROJEC T 3
DEMONSTRATES TO THE SATISFACTION OF THE BALTIMORE CITY BOARD OF 4
ESTIMATES THAT THE CITY OF BALTIMORE OR ITS DESI GNATED AGENCY HAS 5
CONDUCTED AN ECONOMI C ANALYSIS OF THE PR OJECT, INCLUDING AN 6
ASSESSMENT OF THE FI NANCIAL NECESSITY FOR AN EXEMPTION AS AUTHORI ZED 7
UNDER THIS SECTION; AND 8
(2) THE OWNER OF THE ECONOMIC DEVELOPMENT PROJECT AND THE 9
BALTIMORE CITY BOARD OF ESTIMATES ENTER INTO A PAYMENT IN LIEU OF TAXES 10
AGREEMENT SPECIFYING THE AMOUNT THAT THE OWNER SHALL P AY TO 11
BALTIMORE CITY EACH YEAR IN LIE U OF BALTIMORE CITY PROPERTY TAXES 12
DURING THE TERM OF THE AGREEMENT. 13
(D) TO BE ELIGIBLE FOR A PAYMENT IN LIEU OF TAXES AGREEMENT UNDER 14
THIS SECTION, THE OWNER OF AN ECON OMIC DEVELOPMENT PROJECT SHALL, ON 15
OR BEFORE JUNE 30, 2036: 16
(1) APPLY TO ENTER INTO A PAYMENT IN LIEU OF TAXES AGREEMENT; 17
(2) HAVE BUILDING PERMITS ISSUED; AND 18
(3) HAVE SATISFIED OR WA IVED ALL CONDITIONS FOR THE 19
FINANCING REQUIRED FOR THE CONSTRUCTION OF THE PROJECT. 20
(E) ON OR BEFORE JANUARY 1 EACH YEAR, THE CITY OF BALTIMORE OR 21
ITS DESIGNATED AGENCY SHALL REPORT TO THE PRESIDENT OF THE CITY COUNCIL 22
OF BALTIMORE AND, SUBJECT TO § 2–1257 OF THE STATE GOVERNMENT ARTICLE, 23
THE GENERAL ASSEMBLY: 24
(1) A DESCRIPTION OF EAC H ECONOMIC DEVELOP MENT PROJECT 25
FOR WHICH THE CITY OF BALTIMORE ENTERED INTO A PAYMENT IN LIEU OF TAXES 26
AGREEMENT UNDER THIS SECTION DURING THE P RECEDING FISCAL YEAR , 27
INCLUDING A STATEMEN T OF THE ANALYSIS OF THE PROJECT DESCRIBE D IN 28
SUBSECTION (C)(1) OF THIS SECTION; AND 29
(2) FOR THOSE ECONOMIC D EVELOPMENT PROJECTS THAT HAVE A 30
PAYMENT IN LIEU OF T AXES AGREEMENT UNDER THIS SECTION, AND FOR WHICH 31
CONSTRUCTION OR REHABILITATION HAS BEEN COMPLETED: 32
4 HOUSE BILL 1232
(I) THE NUMBER AND TYPES OF JOBS CREATED DURI NG THE 1
PRECEDING FISCAL YEAR AND ESTIMATED TO BE CREATED DURING THE FOLLOWING 2
FISCAL YEAR; 3
(II) THE TOTAL TAXES THAT THE PROJECT IS ESTIM ATED TO 4
HAVE GENERATED , DIRECTLY AND INDIREC TLY, FOR THE CITY OF BALTIMORE 5
DURING THE PRECEDING FISCAL YEAR AND ESTIMATED TO BE GENERATED DURING 6
THE FOLLOWING FISCAL YEAR; AND 7
(III) ANY OTHER ECONOMIC BENEFITS OF THE PROJECT. 8
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 9
1, 2026. 10
SECTION 2. AND BE IT FURTHER ENACTED, That a payment in lieu of taxes 11
agreement entered into under § 7–504.5 of the Tax – Property Article as enacted by Section 12
1 of this Act before the termination of Section 1 of this Act shall remain in effect for the 13
duration of the agreement. 14
SECTION 3. AND BE IT FURTHER ENACTED, That this Act is a n emergency 15
measure, is necessary for the immediate preservation of the public health or safety, has been 16
passed by a yea and nay vote supported by three–fifths of all the members elected to each of 17
the two Houses of the General Assembly, and shall take ef fect from the date it is enacted. 18
Section 1 of this Act shall remain effective for a period of 10 years from the date it is enacted 19
and, at the end of the 10 –year period, Section 1 of this Act, with no further action required 20
by the General Assembly, shall be abrogated and of no further force and effect. 21
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.