Property Tax - Day Care Centers, Child Care Homes, and Child Care Centers
Summary
SB 516 expands and updates Maryland property tax relief for child care-related facilities and certain adult/elder care facilities. The bill exempts personal property used in connection with a registered family child care home or large family child care home from valuation and property taxation when it is located at the individual’s residence. It also broadens existing local property tax credit authority for real property used for child care and day care purposes, including large family child care homes, child care centers, day care centers for the elderly, and day care centers for adults.
The bill removes prior date-based restrictions on eligibility for certain property tax credits, meaning local governments may grant credits without the former requirement that improvements be completed after specified dates. It increases the maximum annual credit for qualifying day care centers, child care homes, and child care centers from $3,000 to $10,000, and sets a $10,000 cap for credits related to certain child care centers and homes. The measure applies beginning with taxable years after June 30, 2025.
Impact
SB 516 amends Sections 7-227, 9-213, and 9-214 of the Tax-Property Article to expand exemptions and local property tax credit options for properties used as child care and related care facilities. It affects individual homeowners operating family or large family child care homes, businesses that dedicate space to child care centers, and local governments that choose to enact these credits by law. The bill does not mandate a credit statewide, but authorizes counties, Baltimore City, and municipal corporations to offer larger credits and broader eligibility under local law.
Sentiment
The bill appears to have been received favorably overall. It was reported favorably with amendments by committee and then passed both chambers with strong margins, including unanimous passage in the Senate and substantial support in the House. The voting history suggests broad bipartisan agreement that the bill provides useful tax relief and support for child care infrastructure.
Contention
There is little evidence of major controversy in the available record. The main policy choices in the bill are the expansion of tax benefits, the removal of prior completion-date limits, and the increase in the maximum credit amount to $10,000. Any potential concern would likely center on reduced local tax revenue or the scope of the subsidy, but no specific objections or opposing arguments are reflected in the provided transcripts or votes.