Baltimore City – Economic Development Project in Downtown RISE District – Payment in Lieu of Taxes, the official text

WES MOORE, Governor                    Ch. 146

Chapter 146

                   (Senate Bill 756)

AN ACT concerning

Baltimore City – Economic Development Project in Downtown RISE District –
                                         Payment in Lieu of Taxes

FOR the purpose of exempting an economic development project located in a certain area
         of downtown Baltimore City from Baltimore City property taxes if the owner of the
         economic development project and the Baltimore City Board of Estimates enter into
         a payment in lieu of taxes agreement and certain other requirements are met; and
         generally relating to a payment in lieu of taxes agreement for an economic
         development project in downtown Baltimore City.

BY adding to
         Article – Tax – Property
         Section 7–504.5
         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

7–504.5.

        (A) IN THIS SECTION, “ECONOMIC DEVELOPMENT PROJECT” MEANS A REAL

ESTATE DEVELOPMENT PROJECT THAT CONSISTS OF NEWLY CONSTRUCTED OR
REHABILITATED COMMERCIAL OR MULTIFAMILY RESIDENTIAL PROPERTY IF THE

REAL ESTATE DEVELOPMENT PROJECT:

                (1) EXISTS WITHIN THE DOWNTOWN RISE DISTRICT AS DESCRIBED
IN SUBSECTION (B) OF THIS SECTION; AND

             (2) INCLUDES AT LEAST ONE OF THE FOLLOWING:

             (I) A HOTEL;

             (II) AN OFFICE BUILDING;

             (III) A RETAIL FACILITY;

             (IV) A MULTIFAMILY RESIDENTIAL FACILITY; OR
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Ch. 146  2026 LAWS OF MARYLAND

                         (V) A MIXED–USE FACILITY THAT CONTAINS ONE OR MORE OF
THE FACILITIES DESCRIBED IN ITEMS (I) THROUGH (IV) OF THIS ITEM.

        (B) THE DOWNTOWN RISE DISTRICT CONSISTS OF:

                (1) WARD 4, PRECINCT 1;

                (2) WARD 4, PRECINCT 2;

                (3) WARD 4, PRECINCT 3;

                (4) WARD 22, PRECINCT 1;

                (5) WARD 22, PRECINCT 2; AND

                (6) WARD 21, PRECINCT 5.

        (C) AN ECONOMIC DEVELOPMENT PROJECT IS EXEMPT OR PARTIALLY
EXEMPT FROM BALTIMORE CITY REAL PROPERTY TAX IF:

                (1) THE OWNER OF THE ECONOMIC DEVELOPMENT PROJECT
DEMONSTRATES TO THE SATISFACTION OF THE BALTIMORE CITY BOARD OF
ESTIMATES THAT THE CITY OF BALTIMORE OR ITS DESIGNATED AGENCY HAS
CONDUCTED AN ECONOMIC ANALYSIS OF THE PROJECT, INCLUDING AN

ASSESSMENT OF THE FINANCIAL NECESSITY FOR AN EXEMPTION AS AUTHORIZED

UNDER THIS SECTION; AND

                (2) THE OWNER OF THE ECONOMIC DEVELOPMENT PROJECT AND THE
BALTIMORE CITY BOARD OF ESTIMATES ENTER INTO A PAYMENT IN LIEU OF TAXES

AGREEMENT SPECIFYING THE AMOUNT THAT THE OWNER SHALL PAY TO

BALTIMORE CITY EACH YEAR IN LIEU OF BALTIMORE CITY PROPERTY TAXES
DURING THE TERM OF THE AGREEMENT.

        (D) TO BE ELIGIBLE FOR A PAYMENT IN LIEU OF TAXES AGREEMENT UNDER
THIS SECTION, THE OWNER OF AN ECONOMIC DEVELOPMENT PROJECT SHALL, ON
OR BEFORE JUNE 30, 2036:

                (1) APPLY TO ENTER INTO A PAYMENT IN LIEU OF TAXES AGREEMENT;

                (2) HAVE BUILDING PERMITS ISSUED; AND

                (3) HAVE SATISFIED OR WAIVED ALL CONDITIONS FOR THE
FINANCING REQUIRED FOR THE CONSTRUCTION OF THE PROJECT.

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WES MOORE, Governor  Ch. 146

        (E) ON OR BEFORE JANUARY 1 EACH YEAR, THE CITY OF BALTIMORE OR
ITS DESIGNATED AGENCY SHALL REPORT TO THE PRESIDENT OF THE CITY COUNCIL
OF BALTIMORE AND, SUBJECT TO § 2–1257 OF THE STATE GOVERNMENT ARTICLE,
THE GENERAL ASSEMBLY:

                (1) A DESCRIPTION OF EACH ECONOMIC DEVELOPMENT PROJECT
FOR WHICH THE CITY OF BALTIMORE ENTERED INTO A PAYMENT IN LIEU OF TAXES
AGREEMENT UNDER THIS SECTION DURING THE PRECEDING FISCAL YEAR,

INCLUDING A STATEMENT OF THE ANALYSIS OF THE PROJECT DESCRIBED IN

SUBSECTION (C)(1) OF THIS SECTION; AND

                (2) FOR THOSE ECONOMIC DEVELOPMENT PROJECTS THAT HAVE A
PAYMENT IN LIEU OF TAXES AGREEMENT UNDER THIS SECTION, AND FOR WHICH
CONSTRUCTION OR REHABILITATION HAS BEEN COMPLETED:

                         (I) THE NUMBER AND TYPES OF JOBS CREATED DURING THE

PRECEDING FISCAL YEAR AND ESTIMATED TO BE CREATED DURING THE FOLLOWING

FISCAL YEAR;

                         (II) THE TOTAL TAXES THAT THE PROJECT IS ESTIMATED TO
HAVE GENERATED, DIRECTLY AND INDIRECTLY, FOR THE CITY OF BALTIMORE

DURING THE PRECEDING FISCAL YEAR AND ESTIMATED TO BE GENERATED DURING

THE FOLLOWING FISCAL YEAR; AND

                         (III) ANY OTHER ECONOMIC BENEFITS OF THE PROJECT.

         SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2026.

         SECTION 2. AND BE IT FURTHER ENACTED, That a payment in lieu of taxes
agreement entered into under § 7–504.5 of the Tax – Property Article as enacted by Section
1 of this Act before the termination of Section 1 of this Act shall remain in effect for the
duration of the agreement.

         SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act is an emergency
measure, is necessary for the immediate preservation of the public health or safety, has
been passed by a yea and nay vote supported by three–fifths of all the members elected to
each of the two Houses of the General Assembly, and shall take effect from the date it is
enacted. It Section 1 of this Act shall remain effective for a period of 10 years from the date
it is enacted and, at the end of the 10–year period, Section 1 of this Act, with no further
action required by the General Assembly, shall be abrogated and of no further force and
effect.

Approved by the Governor, April 14, 2026.
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