Baltimore City - Property Tax - Authority to Impose on Vacant and Abandoned Property Owned by Nonprofit Organizations
Summary
SB550 authorizes the Mayor and City Council of Baltimore City to create a new property tax subclass for certain nonprofit-owned real property that has been vacant and has not received a significant improvement for at least 35 consecutive taxable years, and that is no longer being used for the purpose for which the nonprofit was established. The bill also allows Baltimore City to set a special property tax rate for that subclass, with the special rate capped at 10 times the regular city property tax rate.
In addition, the bill amends Maryland property tax law to clarify that Baltimore City may impose the general property tax rate and the special vacant-property rate on certain nonprofit-owned property that would otherwise be exempt from property tax under existing charitable, educational, or religious exemption provisions, if the property is a vacant lot or an improved property cited as vacant and unfit for habitation or other authorized use. The bill makes conforming changes to the statutory exemptions for charitable and religious property so that those exemptions do not prevent application of the new Baltimore City authority in the specified circumstances. The act takes effect June 1, 2025, and applies to taxable years beginning after June 30, 2025.
Impact
The bill changes Title 6 and Title 7 of the Tax-Property Article by creating a Baltimore City-specific taxing authority over long-vacant nonprofit-owned property and by carving out an exception to otherwise applicable property tax exemptions. It gives Baltimore City discretion to define terms such as "significant improvement" and to structure the subclass and special rate by local law, while preserving the general statewide exemption framework except where the new Baltimore City provisions apply. The practical effect is to allow the city to tax certain underused or abandoned nonprofit properties that have remained vacant for decades, even if they would otherwise qualify for exemption.
Sentiment
The voting record indicates broad bipartisan support and little opposition, with unanimous or near-unanimous passage in the Senate and House and only a small number of negative votes in the House. The absence of committee transcript material suggests there was no recorded major controversy in the available materials. Overall, the bill appears to have been viewed as a targeted local government tool to address long-term vacancy and underutilized property in Baltimore City.
Contention
The main policy tension is between preserving nonprofit property tax exemptions and allowing Baltimore City to tax nonprofit-owned properties that are effectively abandoned or no longer serving their exempt purpose. Supporters likely viewed the bill as a way to discourage long-term vacancy and recover revenue from properties that have sat unused for decades, while any opposition would have centered on the risk of weakening nonprofit exemptions or creating a precedent for taxing charitable, educational, or religious property. The bill narrows that concern by limiting the authority to Baltimore City and to property that has been vacant for at least 35 consecutive taxable years without significant improvement.