Bill > HB1192

This bill establishes a process for rescinding tax-exempt status for nonprofit organizations found to be providing material support to terrorist organizations. Specifically, the Comptroller and the Director of the State Department of Assessments and Taxation will regularly investigate whether any nonprofit organizations in Maryland have been determined by a federal agency to have violated federal laws related to providing support to terrorist organizations. If a nonprofit is found to have supported a designated terrorist organization in any of the three preceding tax years, its tax-exempt status can be rescinded for income, sales and use, and property taxes. The bill requires the Comptroller to provide written notice to the organization, giving them 90 calendar days to contest the rescission. The organization can appeal the decision to the Maryland Tax Court. The nonprofit's tax-exempt status can only be reinstated if the Comptroller determines the rescission was erroneous, the organization did not receive the original notice, or new information warrants reinstatement. Key terms like "material support" are defined using federal statutory language, specifically referencing 18 U.S.C. § 2339A and § 2339B. The provisions will take effect on June 1, 2025, providing a clear timeline for implementation of these new tax exemption rules.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1192?ys=2025RS