2013 Maryland Code
TAX - PROPERTY
§ 7-211 - Interest in government property

§7-211.

(a) (1) In this subsection, “national defense” includes homeland security.

(2) An interest of a person in personal property of the federal government or of the State is not subject to property tax if the person holds an interest in the property under a contract with the federal government or the State for:

(i) manufacturing, constructing, or assembling equipment, supplies, or component parts for national defense purposes; or

(ii) research or development for national defense purposes.

(3) An interest of a person in personal property or real property of the federal government or of the State is not subject to property tax if that property:

(i) is situated on land that is owned by the federal government and located within the defined boundaries of a military installation; and

(ii) is used for national defense purposes or for housing for military personnel and their families.

(b) (1) This subsection does not apply to:

(i) property owned by the Maryland-National Capital Park and Planning Commission in Prince George’s County that is located in a public airport and is used for a restaurant concession; and

(ii) property owned by the Canal Place Preservation and Development Authority in Allegany County if:

1. the property is leased for a concession for a term of 10 years or more; or

2. the lessee has made a capital investment in the property or improvements on the property in excess of $500,000.

(2) An interest of a person in property of the federal government, the State, a county, or a municipal corporation is not subject to property tax, if the property is used for a concession that:

(i) is located in a public airport, park, market, or fairground; and

(ii) is available for use by the general public.

(c) (1) Except for an interest in federal enclave property as defined in § 7-211.3 of this subtitle, an interest of a person in any property of the federal government or the State is not subject to property tax, if the government that owns the property makes negotiated payments in lieu of tax payments.

(2) Land owned by the federal government that is the location for federal enclave property as defined in § 7-211.3 of this subtitle is not subject to property tax.

(d) (1) In this subsection, “port facility” includes at least 1 or a combination of:

(i) lands, piers, docks, wharves, warehouses, sheds, transit sheds, elevators, compressors, refrigeration storage plants, buildings, structures, and other facilities, appurtenances, and equipment that is useful or designed for use in connection with shipbuilding, ship repair, or the operation of a port;

(ii) every kind of terminal, storage structure, or facility that is useful or designed for use in handling, storing, loading, or unloading freight or passengers at marine terminals; and

(iii) every kind of transportation facility that is useful or designed for use in connection with any of these.

(2) An interest of a person in property in a port facility that is owned by the federal government or the State, any of their agencies or instrumentalities, or a county or municipal corporation is not subject to the property tax.

(e) An interest of a person in property in an international trade center as described in § 6-101(e)(4) of the Transportation Article, is not subject to property tax, if the State, or any agency or instrumentality of the State:

(1) owns the property; and

(2) makes negotiated payments in lieu of tax payments.

(f) An interest of a person in personal property in a vending facility operated under the Maryland Vending Program for the Blind is not subject to the property tax.

(g) (1) In this subsection, “public senior higher education institution” has the meaning stated in § 10-101 of the Education Article.

(2) An interest of a person in property of the State is not subject to property tax if the person holds an interest in the property under a lease agreement with the State to use the property to provide housing to students of public senior higher education institutions.

(3) A public senior higher education institution may negotiate a payment-in-lieu-of-taxes agreement with the municipal corporation or county in which the property specified in paragraph (2) of this subsection is located.

(h) (1) In this subsection, “bus passenger shelter” means:

(i) a bus passenger shelter as defined in § 8-750 of the Transportation Article; or

(ii) a shelter located at a designated transit bus stop on a campus of a public senior higher education institution as defined in § 10-101 of the Education Article.

(2) An interest of a person in property of the State, county, or a municipal corporation or any agency or instrumentality of the State, county, or a municipal corporation is not subject to property tax:

(i) if the person holds an interest in the property under an agreement with the State, county, or municipal corporation under § 8-751 or § 8-752 of the Transportation Article to operate a bus passenger shelter; or

(ii) if the person holds an interest in the property under an agreement with a public senior higher education institution to operate a bus passenger shelter.

§ 7-211 - 1. Property used to heat, cool, or generate electricity for State

Property is not subject to property tax if the property:

(1) is actually used exclusively for heating, cooling, or generation or distribution of electricity for property owned and occupied by the State; and

(2) was not subject to property taxation for the taxable year beginning July 1, 1996.

§ 7-211 - 2. Property used for national defense or military housing.

(a) "National defense" defined. -- In this section, "national defense" includes homeland security.

(b) In general. -- Personal property or real property is not subject to property tax if the federal government holds at least a 50% interest in the property, or the entity that owns the property, and the property:

(1) is situated on land that is owned by the federal government and located within the defined boundaries of a military installation; and

(2) is used for national defense purposes or for housing for military personnel and their families.

§ 7-211 - 3. Payment in lieu of tax agreement

(a) Definitions. --

(1) In this section the following words have the meanings indicated.

(2) "Federal enclave property" means real property improvements or an interest in real property improvements:

(i) that are located within the defined boundaries of federally owned land where:

1. the federal jurisdiction would preclude taxation by the State; and

2. the federal government has waived its immunity from State property taxation by law or other form of consent;

(ii) that are either:

1. owned by a person other than the federal government; or

2. held by a person that is taxable under § 6-102(e) of this article; and

(iii) that are not otherwise exempt under this title or any other provision of law.

(iv) "Federal enclave property" does not include any property owned by the United States Department of Veterans Affairs that is leased to a person through an enhanced use lease.

(3) "Local jurisdiction" means a county and, where appropriate, a municipal corporation in which federal enclave property is located.

(4) "Private developer" means a person, other than the federal government or an agency thereof, that owns federal enclave property or holds an interest or privilege under § 6-102(e) of this article in federal enclave property.

(b) In general. --

(1) Subject to the provisions of this section and on initiation by the local jurisdiction where the federal enclave property is located, the local jurisdiction and the State may jointly enter into a payment in lieu of tax agreement with a private developer for federal enclave property.

(2) An agreement authorized under paragraph (1) of this subsection is not effective until it is approved by the federal government.

(3) (i) A local jurisdiction shall initiate any discussions to negotiate a payment in lieu of tax agreement with a private developer of federal enclave property no later than 30 days after receiving written notice by the private developer or the federal government that a development has been proposed for the federal enclave property.

(ii) When any discussions to negotiate a payment in lieu of tax agreement have commenced, the Maryland Department of Transportation shall notify the Legislative Policy Committee within 30 days.

(4) Federal enclave property is not subject to property tax if a private developer enters into a payment in lieu of tax agreement with the State and the local jurisdiction where the federal enclave property is located.

(5) The parties to an agreement under this subsection and the federal government shall consider the total impact and benefits of the development of the federal enclave property on the State and on local jurisdictions, including but not limited to:

(i) the impact on local and regional transportation;

(ii) future economic development;

(iii) the financial resources of the local jurisdiction;

(iv) the environment;

(v) natural resource allocation;

(vi) infrastructure capacity;

(vii) employment;

(viii) disadvantaged business enterprises, minority business enterprises, and small business enterprises;

(ix) the availability and use of public services;

(x) in-kind contributions related to the development, including the services, facilities, personal and real property, traffic mitigation, rights-of-way, and other assets and benefits of the federal government or the private developer made available to and used by the public; and

(xi) any other matter impacted by the development of the federal enclave property.

(6) (i) An agreement under this subsection shall be approved and signed by the Maryland Department of Transportation, on behalf of the State, any party responsible for making a required payment or fulfilling any other provision of the agreement, and the governing body of the local jurisdiction where the federal enclave property is located.

(ii) The Maryland Department of Transportation shall seek consultation with any local jurisdiction impacted by the development of the federal enclave property.

(7) The private developer shall make a payment, if any, in lieu of property taxes to the county tax collector for the county where the federal enclave property is located in an amount and at a time determined by the agreement under this subsection.

(8) The payment required by an agreement under this subsection may not exceed the property tax that would otherwise be due to the State and local jurisdiction if the payment in lieu of tax agreement were not in effect.

(9) The payment received under paragraph (7) of this subsection shall be distributed by the tax collector in accordance with the agreement under this subsection to:

(i) a dedicated fund specifically designated in the agreement as a contribution to the cost of a specific public improvement associated with the development of the federal enclave property; or

(ii) the State, county, and, if applicable, municipal corporation where the federal enclave property is located in the ratio stated in the agreement.

(10) An agreement under this subsection may provide for abating or reducing property tax previously imposed on the federal enclave property.

(11) The Maryland Department of Transportation may adopt regulations to implement this section, in consultation with:

(i) the Department;

(ii) the Department of Business and Economic Development;

(iii) the Department of the Environment;

(iv) the Department of Housing and Community Development; and

(v) the Department of Planning.