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HB0969 amends Maryland property tax law to create special valuation rules for the operating property of rural broadband service providers and to authorize counties to negotiate payment-in-lieu-of-taxes (PILOT) agreements with broadband providers. For valuation purposes, the State Department of Assessments and Taxation must, when using an income approach, consider only actual operating income, and when using a replacement cost approach, reduce the valuation to reflect government contributions, tax credits, subsidies, or other public benefits. The Department may use the replacement cost approach only if it produces a lower value than the income approach.
The bill also adds a new county-level authority allowing a county governing body to enter into a negotiated PILOT agreement with a broadband services provider located in the county. Under such an agreement, the provider pays an agreed annual amount in lieu of county real and personal property taxes, and all or part of the provider’s property may be exempt from county property tax for the term of the agreement. The act applies to taxable years beginning after June 30, 2025.
The bill changes Article 81? No—specifically, it amends the Tax-Property Article by revising §8-109 and adding new §7-522. Its practical effect is to lower or otherwise tailor assessed values for rural broadband infrastructure in some cases, which can reduce property tax liability and align assessments more closely with actual operating income and public subsidies. It also gives counties a new tool to incentivize broadband deployment through negotiated tax agreements, affecting county tax bases, broadband providers, and the State Department of Assessments and Taxation’s valuation practices.
The available record does not include committee testimony or recorded debate, but the bill’s enactment and final passage indicate it had sufficient support to become law. The measure appears generally pro-broadband and pro-rural infrastructure, reflecting a policy preference for encouraging broadband investment in underserved areas through tax valuation rules and local tax incentives. The Senate’s third-reading passage by a 24-9 vote suggests there was meaningful support with some opposition.
The main points of potential contention are the tax preferences granted to broadband providers and the effect on local revenue. Supporters would likely view the bill as a targeted economic-development and connectivity measure for rural areas, while opponents may be concerned that the special valuation method and PILOT authority could reduce county property tax collections or create preferential treatment for a specific industry. Another possible issue is the valuation methodology itself, particularly the requirement to account for subsidies and the restriction on using replacement cost only when it yields a lower value than income-based valuation.