Property Tax - Day Care Centers, Child Care Homes, and Child Care Centers
Summary
HB389 expands and updates Maryland property tax relief for child care-related facilities and home-based providers. The bill exempts certain personal property used in connection with registered large family child care homes from valuation and property taxation, aligning those homes with existing treatment for family child care homes. It also broadens local authority to grant property tax credits for real property used by qualifying child care facilities, including large family child care homes, child care centers, and day care centers for children, adults, and the elderly.
The bill removes older date-based eligibility limits that had required certain improvements to be completed after specified dates in order to qualify for credits. In their place, it raises the maximum annual credit for certain day care centers and child care facilities from $3,000 to $10,000, and sets a $10,000 cap for credits for child care homes and child care centers. The credits remain discretionary, meaning Baltimore City and counties or municipal corporations may choose whether to enact them by local law and may set the duration and other details within the new statutory limits.
Impact
HB389 amends Sections 7-227, 9-213, and 9-214 of the Tax-Property Article to expand tax exemptions and local property tax credit authority for child care providers. It affects personal property taxation for large family child care homes and changes the structure of local real property tax credits for facilities that dedicate space to child care or day care services. The bill applies beginning with taxable years after June 30, 2025, and gives local governments broader and more flexible tools to reduce property tax burdens on eligible providers.
Sentiment
The bill appears to have broad bipartisan support and little visible opposition. It passed the House 132-7 and the Senate 46-0, indicating strong agreement that the measure supports child care access and reduces tax burdens on providers. The absence of committee transcript material suggests no major public controversy was recorded in the provided materials.
Contention
The main policy choices in HB389 are the expansion of tax relief and the removal of prior date restrictions, which may have been intended to make the credits more accessible to existing facilities. Any contention would likely center on the fiscal impact to local governments, since the credits are locally enacted and reduce county or municipal property tax revenue, and on whether the higher $10,000 cap is sufficient or too generous. The bill also distinguishes between large family child care homes, child care centers, and day care centers for adults or the elderly, but the provided record does not show organized opposition to those distinctions.