HB 1595 allows Maryland counties (and Baltimore City) to create a special tax category for qualified data centers. It authorizes local governments to set a distinct personal property tax rate for data centers meeting specific investment and job creation requirements - $2 million in Tier I areas or $5 million elsewhere, plus at least five new jobs. The bill amends tax code to define "qualified data center" and establishes the mechanism for counties to implement this special rate through local law. This directly affects data centers meeting the criteria and county tax systems, changing how these facilities are taxed under personal property rules. The special rate applies to all qualifying data center personal property, not real estate.
HB 1232 allows developers to avoid Baltimore City property taxes for new or renovated commercial or multifamily projects in the Downtown RISE District (specifically wards 4, 21, and 22 precincts) by entering a payment-in-lieu-of-taxes agreement with the city. To qualify, the project must include at least one facility like a hotel, office building, or retail space, and the city must first confirm the project’s financial necessity through an economic analysis. Developers must apply for the agreement by June 30, 2036, with building permits secured and financing conditions met. The city must annually report job creation, estimated tax impacts, and other economic benefits to city council and the state legislature. The bill takes effect July 1, 2026.
HB 983 modifies Maryland's tax credit programs and exemptions. It terminates the Enterprise Zone Program and the One Maryland Economic Development Tax Credit Program on specific dates, ending eligibility for related tax benefits. The bill also limits annual claims for enterprise zone tax credits, restricts carryforwards for film production tax credits, and repeals sales tax exemptions for concrete, telecom equipment, and construction materials. Additionally, it alters eligibility rules for certain vehicle tax credits and ends property tax credits tied to enterprise zones.
SB 374 exempts rental vehicles from Maryland's vehicle excise tax, directly affecting rental car companies operating in the state. The bill adds a new exemption category (Section 13-810(a)(26)) to the existing list, removing rental vehicles from the tax base that previously applied a 3.5% rate under Section 13-809(c)(1)(ii). This change eliminates the excise tax obligation for rental car companies on vehicles they lease to customers. The exemption takes effect July 1, 2026, and does not alter other tax rates or provisions.
HB 585 exempts rental cars from Maryland's vehicle excise tax, directly affecting rental car companies operating in the state. The bill adds "RENTAL VEHICLE" to the list of vehicles already exempt from this tax under Maryland law. This change takes effect July 1, 2026, removing a tax burden specifically on vehicles used for short-term rentals.
HB 139 establishes an annual tax-free day on November 11 (Veterans Day) starting in 2026, allowing veterans to purchase items under $2,000 without paying Maryland's sales tax. To qualify, veterans must show a driver's license or ID card noting veteran status at the point of sale. The Comptroller can suspend the tax-free day at their discretion. This law directly affects veterans shopping for qualifying items on Veterans Day, creating a temporary sales tax exemption with specific verification requirements.
SB 33 expands an existing tax exemption for property transfers between related business entities to include common law trusts. It amends Maryland law to explicitly allow transfers of real property between parent companies and subsidiaries (or among subsidiaries) involving common law trusts to qualify for exemption from recordation and transfer taxes. This applies to transfers with no consideration, nominal consideration, or consideration limited to ownership interest changes, provided specific ownership history requirements are met. The change takes effect July 1, 2026, and affects business entities using common law trusts in related-party property transfers. Individual homeowners or unrelated transfers are not impacted by this provision.
