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MarylandHB 03892025 Regular SessionHouseWALLET

Property Tax - Day Care Centers, Child Care Homes, and Child Care Centers

Sponsored By: Julie Palakovich Carr (Democratic)

Signed by Governor

Taxes - PropertyChildrenBaltimore CityChild CareCounties -see also- Chartered Counties; Code Counties; etc.ExemptionsLaws and Ordinances -see also- Pub Local Laws; Uniform LawsLocal Government MandatesMunicipal Corporations -see also- Annap; Balt; Hager; OCPersonal PropertyProperty TaxReal PropertyTax Credits

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Broader child care tax relief for businesses

Baltimore City, counties, and municipalities can authorize a property tax credit for property owned by businesses with at least 25 employees. A substantially completed improvement must include space used only by a registered family or large family child care home, or licensed child care center. Local law sets the amount, duration, and terms; the annual credit cannot exceed $10,000 or the local property tax on qualifying space, whichever is less. Improvements no longer need to have been substantially completed after July 1, 1988. The law took effect June 1, 2025, and applies to taxable years beginning after June 30, 2025.

Broader property tax relief for care facilities

Baltimore City, counties, and municipalities can authorize property tax credits for space used only by qualifying care facilities. Eligible facilities include registered family or large family child care homes, licensed child care centers, and licensed elderly or adult day care centers. Local law sets the amount, duration, and terms; the annual credit cannot exceed $10,000 or the local property tax on that space, whichever is less. Improvements no longer need to have been substantially completed after July 1, 1987. Property that qualifies for the separate business child care credit cannot receive this credit. The law took effect June 1, 2025, and applies to taxable years beginning after June 30, 2025.

Tax relief for home child care

Personal property owned by an individual, kept at their residence, and used for registered home child care is exempt from valuation and property tax. Both registered family child care homes and large family child care homes qualify. When the owner attests that the property's original cost is below $20,000, the Department cannot collect personal property information or require a personal property tax return. The law took effect June 1, 2025, and applies to taxable years beginning after June 30, 2025.

Sponsors & Cosponsors

Sponsor

  • Julie Palakovich Carr

    Democratic • House

Cosponsors

  • Dana Jones

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 179 • No: 7

Senate vote • 4/2/2025

Third Reading Passed

Yes: 46 • No: 0 • Other: 1

House vote • 3/11/2025

Third Reading Passed

Yes: 133 • No: 7

Actions Timeline

  1. Approved by the Governor - Chapter 122

    4/22/2025

  2. Returned Passed

    4/2/2025House

  3. Third Reading Passed (46-0)

    4/2/2025Senate

  4. Favorable Adopted Second Reading Passed

    3/27/2025Senate

  5. Favorable Report by Budget and Taxation

    3/27/2025Senate

  6. Referred Budget and Taxation

    3/12/2025Senate

  7. Third Reading Passed (133-7)

    3/11/2025House

  8. Favorable Adopted Second Reading Passed

    3/5/2025House

  9. Favorable Report by Ways and Means

    3/4/2025House

  10. Hearing 2/04 at 1:00 p.m.

    1/18/2025House

  11. First Reading Ways and Means

    1/16/2025House

Bill Text

  • Enacted

    4/22/2025

    PDF

  • Third Reading

    3/5/2025

    PDF

  • First Reading

    1/16/2025

    PDF

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