SB 887
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
Senate Bill 887 (Senators Elfreth and Simonaire)
Budget and Taxation Ways and Means
Property Tax Credit – Business Entities – State of Emergency
This bill authorizes county and municipal governments to grant a property tax credit for
real or personal property owned or leased by a business entity affected by a specified
declared state of emergency. County and municipal governments may provide, by law, for
(1) the amount and duration of the property tax credit; (2) additional eligibility criteria for
the property tax credit; (3) regulations and procedures for the application and uniform
processing of requests for the property tax credit; and (4) any other provision necessary to
carry out the property tax credit. The bill takes effect June 1, 2021, and applies to taxable
years beginning after June 30, 2021.
Fiscal Summary
State Effect: None.
Local Effect: County and municipal property tax revenues decrease in any year in which
there is a declared state of emergency, to the extent the property tax credit is granted. The
amount of the decrease depends on the number of businesses receiving the property tax
credit and the amount of the property tax credit. Local expenditures are not affected.
Small Business Effect: Potential meaningful. Small businesses receiving a property tax
credit will benefit from a reduced property tax liability.
Analysis
Current Law: Under the Tax – Property Article, all local governments are subject to
statewide mandatory tax credit programs and are authorized to grant tax credits for certain
types of property. They also are subject to mandatory and optional tax credits specific to
individual counties and municipalities. The authority to grant local tax credits must be
provided for in State law. A comprehensive overview on property tax credits in Maryland
can be found in Chapter 2 of the Guide to the Property Tax Structure in Maryland.
The Governor declared a public health emergency on March 5, 2020, with the declaration
being extended several times since. The public health emergency is still in effect, and the
most recent renewal occurred on December 23, 2020.
Local Fiscal Effect: The bill authorizes counties and municipalities to provide a property
tax credit to businesses that are affected by a declared state of emergency. As a result,
county and municipal property tax revenues may decrease in any year in which a state of
emergency is declared, to the extent the property tax credit is granted. The amount of the
decrease depends on the number of businesses receiving the property tax credit and the
amount of the property tax credit.
The following summary provides an overview on the amount of property tax revenues
collected by county governments and their overall reliance on the commercial property tax
base. Additional information on local property tax rates and revenue amounts for Maryland
counties and Baltimore City can be found in the County Revenue Outlook report. A copy
of the fiscal 2021 report is available on the Department of Legislative Services website.
Property Tax Collections – County Governments
County property tax collections are projected to total $9.1 billion in fiscal 2021. A
considerable portion of these revenues are generated by commercial establishments. As
shown in Exhibit 1, commercial real property accounts for approximately 25% of the total
real property base. In Baltimore City, commercial real property accounts for over 40% of
the total real property base. Of the 2.4 million real property tax accounts in the State,
approximately 2.5% are either improved commercial accounts (47,700) or improved
commercial condominium accounts (15,800). As shown in Exhibit 2, the average real
property assessment is $2.1 million for commercial accounts and $721,700 for commercial
condo accounts. The average local property tax amount for these accounts total $25,300
for commercial real property and $8,600 for commercial condo real property.
SB 887/ Page 2
 Exhibit 1
Real Property Base – Fiscal 2019
Commercial Total
County Real Property Real Property % Commercial
Allegany $983,411,141 $3,647,463,426 27.0%
Anne Arundel 21,336,377,969 91,133,376,067 23.4%
Baltimore City 19,910,869,418 45,557,036,733 43.7%
Baltimore 24,978,591,308 87,945,647,348 28.4%
Calvert 1,361,803,590 12,184,658,610 11.2%
Caroline 408,078,102 2,625,018,052 15.5%
Carroll 2,636,162,950 20,099,491,617 13.1%
Cecil 2,275,859,595 10,181,215,060 22.4%
Charles 3,387,114,025 18,369,902,013 18.4%
Dorchester 525,149,231 2,877,705,939 18.2%
Frederick 6,366,822,557 31,978,786,534 19.9%
Garrett 477,260,496 4,413,279,645 10.8%
Harford 5,855,085,796 28,583,847,626 20.5%
Howard 12,397,250,972 53,313,887,877 23.3%
Kent 414,795,733 2,970,482,813 14.0%
Montgomery 46,217,229,938 195,345,501,347 23.7%
Prince George’s 28,728,368,112 97,654,459,098 29.4%
Queen Anne’s 1,055,072,365 8,397,765,444 12.6%
St. Mary’s 1,811,217,943 12,594,358,576 14.4%
Somerset 273,368,437 1,376,668,778 19.9%
Talbot 1,094,068,494 8,493,110,859 12.9%
Washington 3,984,619,028 12,880,995,194 30.9%
Wicomico 1,642,878,307 6,306,778,804 26.0%
Worcester 2,702,769,121 15,893,364,746 17.0%
Total $190,824,224,628 $774,824,802,206 24.6%
Source: State Department of Assessments and Taxation
SB 887/ Page 3
 Exhibit 2
Commercial and Commercial Condo Real Property Accounts
July 2020
Commercial Real Property Commercial Condominium Real Property
Avg. Avg.
County Accounts Value Value Accounts Value Value
Allegany 2,033 $819,950,975 $403,321 51 $2,633,400 $51,635
Anne Arundel 4,014 12,541,073,574 3,124,333 1,701 738,442,901 434,123
Baltimore City 7,955 11,809,975,616 1,484,598 695 1,508,098,830 2,169,926
Baltimore 6,265 11,956,855,486 1,908,516 469 810,733,166 1,728,642
Calvert 553 758,266,546 1,371,187 146 39,970,995 273,774
Caroline 511 258,823,497 506,504 0 0 n/a
Carroll 1,651 1,921,249,897 1,163,689 345 97,711,199 283,221
Cecil 1,318 1,188,439,662 901,699 182 15,643,600 85,954
Charles 1,055 1,990,673,638 1,886,894 674 182,520,421 270,802
Dorchester 709 380,002,708 535,970 0 0 n/a
Frederick 2,097 4,007,082,388 1,910,864 693 264,464,228 381,622
Garrett 808 382,472,265 473,357 250 31,584,000 126,336
Harford 2,197 3,426,238,776 1,559,508 157 90,292,433 575,111
Howard 1,179 5,282,329,132 4,480,347 1,368 694,140,298 507,412
Kent 509 357,727,700 702,805 12 5,984,167 498,681
Montgomery 2,927 22,963,239,791 7,845,316 3,821 5,351,718,399 1,400,607
Prince George’s 3,543 11,937,267,704 3,369,254 2,938 888,429,836 302,393
Queen Anne’s 601 747,184,099 1,243,235 573 56,528,867 98,654
St. Mary’s 1,113 1,149,494,318 1,032,789 142 70,439,731 496,054
Somerset 646 199,838,937 309,348 23 2,913,199 126,661
Talbot 930 853,530,539 917,775 212 54,060,419 255,002
Washington 1,781 2,264,385,743 1,271,413 110 136,550,527 1,241,368
Wicomico 1,541 1,029,168,763 667,858 339 68,841,156 203,071
Worcester 1,729 2,365,456,663 1,368,107 850 254,955,027 299,947
Total 47,665 $100,590,728,417 $2,110,369 15,751 $11,366,656,799 $721,647
Avg.: average
Source: State Department of Assessments and Taxation
Additional Information
Prior Introductions: None.
Designated Cross File: HB 1137 (Delegate Kerr) - Ways and Means.
SB 887/ Page 4
Information Source(s): Baltimore, Dorchester, Garrett, Howard, and Montgomery
counties; Maryland Association of Counties; cities of Salisbury and Westminster;
Maryland Municipal League; towns of Bel Air, Leonardtown, and Riverdale Park; State
Department of Assessments and Taxation; Department of Legislative Services
Fiscal Note History: First Reader - February 22, 2021
an/hlb Third Reader - April 6, 2021
Analysis by: Michael Sanelli Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 887/ Page 5


Statutes affected:
Text - First - Property Tax Credit – Business Entities – State of Emergency: 9-266 Tax Property
Text - Third - Property Tax Credit – Business Entities – State of Emergency: 9-266 Tax Property