Bill > SB774

This bill authorizes county governments in Maryland to create payment-in-lieu-of-taxes (PILOT) agreements with broadband service providers located in their county. Under these agreements, the broadband provider would negotiate a specific annual payment to the county instead of paying traditional property taxes. The agreement can exempt all or part of the provider's real and personal property from county property tax for a specified term. The bill allows counties to enter into these agreements flexibly, determining the exact amount of the negotiated payment and the extent of property tax exemption. The goal appears to be to incentivize broadband infrastructure development by providing tax relief to service providers who invest in county infrastructure. The legislation will take effect on June 1, 2025, and will apply to all taxable years beginning after June 30, 2025, giving counties and broadband providers time to prepare and potentially negotiate these new tax arrangements.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0774?ys=2025RS