Property Taxes - Authority of Counties to Establish a Subclass and Set a Special Rate for Personal Property of Data Centers

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
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SENATE BILL 427
Q1 6lr2516
CF 6lr3575
By: Senator Lewis Young
Introduced and read first time: January 30, 2026
Assigned to: Budget and Taxation

A BILL ENTITLED

AN ACT concerning 1

Property Taxes – Authority of Counties to Establish a Subclass and Set a 2
Special Rate for Personal Property of Data Centers 3

FOR the purpose of authorizing the Mayor and City Council of Baltimore City or the 4
governing body o f a county to establish , by law, a subclass of personal property 5
consisting of all the personal property of certain qualified data centers and set a 6
special personal property tax rate for the subclass; and generally relating to the 7
authority of counties to establish a subclass and set a special tax rate for the personal 8
property of data centers. 9

BY repealing and reenacting, without amendments, 10
Article – Tax – General 11
Section 11–239(a)(1), (2), and (5) 12
Annotated Code of Maryland 13
(2022 Replacement Volume and 2025 Supplement) 14

BY repealing and reenacting, with amendments, 15
Article – Tax – Property 16
Section 6–202.1 and 6–302(b) 17
Annotated Code of Maryland 18
(2019 Replacement Volume and 2025 Supplement) 19

BY adding to 20
Article – Tax – Property 21
Section 6–302(e) 22
Annotated Code of Maryland 23
(2019 Replacement Volume and 2025 Supplement) 24

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
That the Laws of Maryland read as follows: 26

2 SENATE BILL 427

Article – Tax – General 1

11–239. 2

(a) (1) In this section the following words have the meanings indicated. 3

(2) “Data center” means a building or group of buildings used to house 4
computer systems, computer storage equipment, and associated infrastructure that 5
businesses or other organizations use to organize, process, store, and disseminate large 6
amounts of data. 7

(5) (i) “Qualified data center” means a data center located in the State 8
in which an individual or a corporation, within 3 years after submitting an application for 9
the sales and use tax exemption under this section, has: 10

1. for a data center located within a Tier I area, invested at 11
least $2,000,000 in qualified data center personal property and created at least five 12
qualified positions; or 13

2. for a data center located in any other area of the State, 14
invested at least $5,000,000 in qualified data center personal property and created at least 15
five qualified positions. 16

(ii) “Qualified data center” includes: 17

1. a data center that is a c o–located or hosting data center 18
where equipment, space, and bandwidth are available to lease to multiple customers; and 19

2. an enterprise data center owned and operated by the 20
company it supports. 21

Article – Tax – Property 22

6–202.1. 23

(A) The Mayor and City Council of Baltimore City or the governing body of a 24
county may establish, by law, a subclass of real property consisting of vacant lots or 25
improved property cited as vacant and unfit for habitation or other authorized use on a 26
housing or building violation notice. 27

(B) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 28
GOVERNING BODY OF A COUNTY MAY ESTABLISH, BY LAW, A SUBCLASS OF PERSONAL 29
PROPERTY CONSISTING OF ALL THE PERSONAL PROPERT Y OF A QUALIFIED DAT A 30
CENTER AS DEFINED IN § 11–239 OF THE TAX – GENERAL ARTICLE. 31

6–302. 32
SENATE BILL 427 3

(b) (1) Except as provided in [subsection] SUBSECTIONS (c) AND (E) of this 1
section and §§ 6–305 and 6–306 of this subtitle: 2

(i) there shall be a single county property tax rate for all real 3
property subject to county property tax except for operating real property described in § 4
8–109(c) of this article; and 5

(ii) the county tax rate applicable to personal property and the 6
operating real property described in § 8 –109(c) of this article shall be no more than 2.5 7
times the rate for real property. 8

(2) Paragraph (1) of this subsection does not affect a special rate prevailing 9
in a taxing district or part of a county. 10

(E) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 11
GOVERNING BODY OF A COUNTY MAY SET A SINGLE SPECIAL PERSONAL PROPERTY 12
TAX RATE FOR ALL THE PERSONAL PROPERT Y OF A QUALIFIED DAT A CENTER AS 13
DEFINED IN § 11–239 OF THE TAX – GENERAL ARTICLE. 14

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 15
1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026. 16