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*hb1243*
HOUSE BILL 1243
Q2 (6lr1776)
ENROLLED BILL
— Ways and Means/Budget and Taxation —
Introduced by Prince George’s County Delegation
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
Prince George’s County – Personal Property Tax Exemption for Small 2
Manufacturers 3
PG 423–26 4
FOR the purpose of exempting all certain personal property in the possession of a person 5
engaged in a certain manufacturing business with fewer than a certain number of 6
employees from the municipal corporation personal property tax in Prince George’s 7
County; and generally relating to a personal property tax exemption for 8
manufacturing businesses in Prince George’s County. 9
BY repealing and reenacting, without amendments, 10
Article – Tax – Property 11
Section 1–101(a), (r), and (dd), 7–222(a), 7–225(a), and 7–226 12
Annotated Code of Maryland 13
2 HOUSE BILL 1243
(2019 Replacement Volume and 2025 Supplement) 1
BY repealing and reenacting, with amendments, 2
Article – Tax – Property 3
Section 6–104 and 7–109(a) 4
Annotated Code of Maryland 5
(2019 Replacement Volume and 2025 Supplement) 6
BY adding to 7
Article – Tax – Property 8
Section 7–226.1 9
Annotated Code of Maryland 10
(2019 Replacement Volume and 2025 Supplement) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Tax – Property 14
1–101. 15
(a) In this article the following words have the meanings indicated. 16
(r) (1) “Manufacturing” means the process of substantially transforming, or a 17
substantial step in the process of substant ially transforming, tangible personal property 18
into a new and different article of tangible personal property by use of labor or machinery. 19
(2) “Manufacturing” includes: 20
(i) the operation of sawmills, grain mills, or feed mills; 21
(ii) the operation of machinery and equipment used to extract and 22
process minerals, metals, or earthen materials or by –products that result from the 23
extracting or processing; 24
(iii) research and development activities, whether or not the company 25
has a product for sale; 26
(iv) the identification, design, or genetic engineering of biological 27
materials for research or manufacture; and 28
(v) the design, development, or creation of computer software for 29
sale, lease, or license. 30
(3) “Manufacturing” does not include: 31
(i) activities that are primarily a service; 32
HOUSE BILL 1243 3
(ii) activities that are intellectual, artistic, or clerical in nature; 1
(iii) public utility services, including telephone, gas, electric, water, 2
and steam production services; or 3
(iv) any o ther activity that would not commonly be considered as 4
manufacturing. 5
(dd) “Property tax” means the property tax imposed by: 6
(1) the State; 7
(2) a county; or 8
(3) a municipal corporation. 9
6–104. 10
Except as otherwise provided in §§ 7–222 [and], 7–226, AND 7–226.1 of this article, 11
any stock in business of a person who engages in a manufacturing or commercial business 12
in the State is subject to property tax. 13
7–109. 14
(a) [The] EXCEPT AS PROVIDED IN § 7–226.1 OF THIS TITLE , personal 15
property described in §§ 7 –222, 7–225, and 7 –226 of this title is subject to the municipal 16
corporation property tax unless exempted in full or in part by the governing body of the 17
municipal corporation by law. 18
7–222. 19
(a) Except as provided in § 7–109 of this title and in subsection (b) of this section, 20
the stock in business of a person engaged in a manufacturing or commercial business is not 21
subject to property tax. 22
7–225. 23
(a) Except as provided in § 7–109 of this title and in subsection (b) of this section, 24
if used in manufacturing, the following personal property, however operated and whether 25
or not in use, is not subject to property tax: 26
(1) tools; 27
(2) implements; 28
(3) machinery; or 29
4 HOUSE BILL 1243
(4) manufacturing apparatus or engines. 1
7–226. 2
Except as provided in § 7–109 of this title, raw materials and manufactured products 3
in the possession of a manufacturer are not subject to property tax. 4
7–226.1. 5
IN PRINCE GEORGE’S COUNTY, ALL PERSONAL PROPERT Y, INCLUDING 6
MANUFACTURING INVENTORY, DESCRIBED IN §§ 7–222, 7–225, AND 7–226 OF THIS 7
SUBTITLE IN THE POSSESSION OF A PERSON ENGAGED IN A MANUFACTURING 8
BUSINESS THAT HOLDS AN ALCOHOLIC B EVERAGES MANUFACTURE R’S LICENSE 9
UNDER TITLE 2, SUBTITLE 2 OF THE ALCOHOLIC BEVERAGES AND CANNABIS 10
ARTICLE AND HAS 50 OR FEWER EMPLO YEES IS EXEMPT FROM THE MUNICIPAL 11
CORPORATION PROPERTY TAX , INCLUDING ANY SPECIA L TAXING DISTRICT 12
PROPERTY TAX. 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 14
1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026. 15
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.