Bill > HB656

This bill requires the Comptroller and the Director of the State Department of Assessments and Taxation to work together to regularly check if any nonprofit organizations in Maryland are providing "material support or resources" (meaning anything that helps a terrorist organization, as defined by federal law) to groups designated as terrorist organizations by the U.S. Secretary of State or under specific federal tax code provisions. If a nonprofit organization is found to be a "terrorist-supporting organization" within the last three years, its tax-exempt status for Maryland income tax, sales and use tax, and property tax will be revoked. Before revoking this status, the Comptroller must notify the organization and give it 90 days to provide information to prevent the revocation. If the status is revoked, the organization can appeal the decision to the Maryland Tax Court, and the Comptroller and Director are tasked with creating joint regulations to implement these changes, with the bill taking effect on June 1, 2026.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0656?ys=2026RS