Property Tax - City of Hagerstown and the Hagerstown Multi-Use Sports and Events Facility, Inc. - Exemption

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0497*

SENATE BILL 497
Q1 6lr1536
CF HB 846
By: Washington County Senators
Introduced and read first time: February 2, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable
Senate action: Adopted
Read second time: February 20, 2026

CHAPTER ______

AN ACT concerning 1

Property Tax – City of Hagerstown and the Hagerstown Multi–Use Sports and 2
Events Facility, Inc. – Exemption 3

FOR the purpose of exempting from the property tax property that is owned by the City of 4
Hagerstown and used primarily for public social, recreational, and entertainment 5
purposes; establishing that the exemption from the property tax for certain property 6
owned by the City o f Hagerstown or the Hagerstown Multi –Use Sports and Events 7
Facility shall apply retroactively beginning with a certain taxable year; requiring 8
the State, Washington County, and the City of Hagerstown to pay a refund for any 9
excess property tax paid due to the retroactive exemption under this Act ; and 10
generally relating to a property tax exemption for property owned by the City of 11
Hagerstown or the Hagerstown Multi–Use Sports and Events Facility, Inc. 12

BY repealing and reenacting, without amendments, 13
Article – Tax – Property 14
Section 1–101(a), (cc), and (dd) 15
Annotated Code of Maryland 16
(2019 Replacement Volume and 2025 Supplement) 17

BY repealing and reenacting, with amendments, 18
Article – Tax – Property 19
Section 7–251 and 7–524 20
Annotated Code of Maryland 21
(2019 Replacement Volume and 2025 Supplement) 22

2 SENATE BILL 497

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2

Article – Tax – Property 3

1–101. 4

(a) In this article the following words have the meanings indicated. 5

(cc) “Property” means real property and personal property. 6

(dd) “Property tax” means the property tax imposed by: 7

(1) the State; 8

(2) a county; or 9

(3) a municipal corporation. 10

7–251. 11

(A) Property is not subject to property tax if the property: 12

(1) is owned by [The]: 13

(I) THE CITY OF HAGERSTOWN; OR 14

(II) THE Hagerstown Multi –Use Sports and Events Facility, Inc.; 15
and 16

(2) is used primarily for public social, recreational, and entertainment 17
purposes. 18

(B) (1) THE EXEMPTION UNDER SUBSECTION (A) OF THIS SECTION SHALL 19
APPLY RETROACTIVELY TO TAXABLE YEARS BEGINNING AFTER JUNE 30, 2023. 20

(2) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE: 21

(I) THE DEPARTMENT SHALL GRANT AN EXEMPTION FOR ALL 22
ELIGIBLE TAXABLE YEARS TO A PERSON THAT REQ UESTS A RETROACTIVE 23
EXEMPTION UNDER THIS SECTION; AND 24

(II) THE STATE, WASHINGTON COUNTY, AND THE CITY OF 25
HAGERSTOWN SHALL PAY A REFUND FOR ANY EXCESS PROPERTY TAX PAID DUE TO 26
A RETROACTIVE EXEMPTION GRANTED UNDER THIS SECTION. 27

SENATE BILL 497 3

7–524. 1

Notwithstanding the exemption from property tax under § 7–251 of this title, [The] 2
THE Hagerstown Multi–Use Sports and Events Facility, Inc. may pay to the governing body 3
of Washington County or the City of Hagerstown an amount, if any, that may be set by 4
mutual agreement in lieu of the taxes that would otherwise be due on all or part of th e 5
facility. 6

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 7
1, 2026. 8

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.