Bill > HB1189

This bill provides the Mayor and City Council of Baltimore City with expanded authority to impose property taxes on certain nonprofit-owned properties that are no longer being used for their original charitable, educational, or religious purposes. Specifically, the bill allows the city to establish a new tax classification for real property owned by nonprofit organizations that has sat vacant or unused for at least three consecutive taxable years. Under the new provisions, such properties would no longer be automatically exempt from property taxation and could be taxed at the general property tax rate or a special rate for vacant or unfit properties. The bill modifies existing tax law sections related to property tax exemptions for nonprofit and religious organizations, effectively closing a potential loophole where nonprofits might retain tax-exempt status for properties they are not actively using for their intended purposes. The changes will take effect on June 1, 2025, and will apply to all taxable years beginning after June 30, 2025, giving nonprofit organizations time to adapt to the new regulations. The goal appears to be encouraging more active and productive use of properties owned by nonprofit entities or generating tax revenue from properties that are not serving their original community-focused missions.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1189?ys=2025RS