Property Tax Credit - Retail Service Station Conversions, the official text

WES MOORE, Governor                                 Ch. 643

Chapter 643

                   (House Bill 161)

AN ACT concerning

             Property Tax Credit – Retail Service Station Conversions

FOR the purpose of authorizing the Mayor and City Council of Baltimore City or the
         governing body of a county or municipal corporation to grant, by law, a credit against
         the county or municipal corporation property tax imposed on real property if use of
         the real property has been converted from a retail service station to other certain
         uses; authorizing the State to pay to each county or municipal corporation that
         grants the property tax credit under this Act an amount equal to a certain percentage
         of certain forgone revenue of the county or municipal corporation; and generally
         relating to a property tax credit for retail service station conversions.

BY adding to
         Article – Tax – Property
         Section 9–276
         Annotated Code of Maryland
         (2019 Replacement Volume and 2025 Supplement)

         SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:

                   Article – Tax – Property

9–276.

        (A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

             (2) “DISCOUNT STORE” MEANS A RETAIL STORE THAT OFFERS FOR

SALE:

                         (I) A COMBINATION AND VARIETY OF CONVENIENCE AND
CONSUMER SHOPPING GOODS; AND

                         (II) THE MAJORITY OF THE ITEMS IN THE INVENTORY AT A
PRICE NOT TO EXCEED $5.

                (3) “RETAIL USE” DOES NOT INCLUDE USE AS A DISCOUNT STORE OR
A SELF–SERVICE STORAGE FACILITY BY:

             (I) A DISCOUNT STORE;
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Ch. 643    2026 LAWS OF MARYLAND

           (II) A SELF–SERVICE STORAGE FACILITY;

                         (III) A LICENSED RETAILER OF CIGARETTES UNDER TITLE 16 OF
THE BUSINESS REGULATION ARTICLE;

                         (IV) A LICENSED OTHER TOBACCO PRODUCTS RETAILER OR
TOBACCONIST, AS DEFINED IN § 16.5–101 OF THE BUSINESS REGULATION ARTICLE;

                         (V) AN ELECTRONIC SMOKING DEVICES RETAILER OR A VAPE
SHOP VENDOR, AS DEFINED IN § 16.7–101 OF THE BUSINESS REGULATION ARTICLE;

OR

                         (VI) A HOLDER OF A CLASS A RETAIL ALCOHOLIC BEVERAGES
LICENSE UNDER DIVISION II OF THE ALCOHOLIC BEVERAGES AND CANNABIS
ARTICLE.

        (B) IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT A PROPERTY TAX

CREDIT AUTHORIZED UNDER THIS SECTION BE GRANTED PRIMARILY TO DEFRAY
COSTS ASSOCIATED WITH THE REMOVAL OF UNDERGROUND STORAGE TANKS AND
THE REMEDIATION OF ANY CONTAMINATION ASSOCIATED WITH UNDERGROUND

STORAGE TANKS.

        (C) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY GRANT, BY LAW,

A PROPERTY TAX CREDIT UNDER THIS SECTION AGAINST THE COUNTY OR
MUNICIPAL CORPORATION PROPERTY TAX IMPOSED ON REAL PROPERTY IF THE USE

OF THE REAL PROPERTY HAS BEEN CONVERTED FROM A RETAIL SERVICE STATION

TO ANOTHER RETAIL USE, A RESIDENTIAL USE, OR A MIXED RETAIL AND
RESIDENTIAL USE.

        (D) THE TAX CREDIT UNDER THIS SECTION MAY NOT BE GRANTED FOR REAL

PROPERTY UNLESS UNDERGROUND STORAGE TANKS LOCATED ON OR FORMERLY
LOCATED ON THE REAL PROPERTY HAVE BEEN PERMANENTLY CLOSED IN

ACCORDANCE WITH REGULATIONS OF THE DEPARTMENT OF THE ENVIRONMENT.

(D) (E)    THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE

GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY PROVIDE, BY

LAW, FOR:

                (1) THE AMOUNT AND DURATION OF THE TAX CREDIT UNDER THIS
SECTION;

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WES MOORE, Governor  Ch. 643

                (2) ADDITIONAL ELIGIBILITY CRITERIA FOR THE TAX CREDIT;

                (3) REGULATIONS AND PROCEDURES FOR THE APPLICATION AND
UNIFORM PROCESSING OF REQUESTS FOR THE TAX CREDIT; AND

                (4) ANY OTHER PROVISION NECESSARY TO CARRY OUT THE TAX
CREDIT UNDER THIS SECTION.

        (E) THE STATE MAY PAY TO EACH COUNTY OR MUNICIPAL CORPORATION
THAT GRANTS THE TAX CREDIT UNDER THIS SECTION AN AMOUNT EQUAL TO 50% OF

THE PROPERTY TAX REVENUE THAT WOULD HAVE BEEN COLLECTED IF THE TAX

CREDIT UNDER THIS SECTION HAD NOT BEEN GRANTED.

         SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June
1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026.

Approved by the Governor, May 26, 2026.

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