Bill > HB1595

This bill allows the Mayor and City Council of Baltimore City or the governing body of a county to create a special category, or "subclass," for the personal property owned by certain qualified data centers, which are defined as facilities housing significant computer systems and infrastructure used for storing and processing large amounts of data. To be considered "qualified," a data center must meet specific investment and job creation thresholds within three years of applying for a sales and use tax exemption, with different requirements depending on the data center's location within the state. Once this subclass is established by law, the county can then set a unique, special tax rate specifically for the personal property within that subclass, which differs from the general personal property tax rate. This provision is intended to provide a potential tax incentive for data centers and will apply to all tax years beginning after June 30, 2026.

Government Affairs

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1595?ys=2026RS