Income, Sales and Use, and Property Taxes - Rescission of Exempt Status for Nonprofit Organizations for Supporting Terrorist Organizations

HB 1192 requires Maryland's Comptroller and State Tax Department to regularly check if nonprofits with state tax exemptions have been federally designated as supporting terrorist organizations under U.S. law. If confirmed, it mandates rescinding their income, sales, use, and property tax exemptions. Nonprofits must be notified in writing with 90 days to provide evidence to prevent rescission, and can appeal to the Maryland Tax Court. Reinstatement is possible only if the rescission was erroneous or based on new evidence. This directly affects Maryland nonprofits currently holding tax-exempt status who have been found by federal authorities to provide material support to designated terrorist groups.