MarylandSB 05162025 Regular SessionSenateWALLET

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

Sponsored By: Nancy J. King (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.

Home Child Care Providers Pay Less Tax

The Maryland law takes effect June 1, 2025, and applies to tax years beginning after June 30, 2025. It exempts personal property from valuation and property tax when an individual owns it and keeps it at their residence. The property must support a registered family or large family child care home; vehicles are excluded. When the property's total original cost, excluding vehicles, is under $20,000, the state cannot require property information or a personal property tax return. The owner can attest to that total instead of filing documents.

More Business Child Care Sites Qualify

For tax years beginning after June 30, 2025, Maryland expands a locally authorized property tax credit for business-owned child care space. The property-owning business must have at least 25 employees. An improvement must include space used only for registered family or large family child care, or a licensed child care center. The old requirement for completion after July 1, 1988, is removed. Local governments set amounts, duration, and terms; the annual credit cannot exceed $10,000 or the local property tax on that space, whichever is less.

More Day Care Properties Qualify for Credits

For tax years beginning after June 30, 2025, Maryland expands eligibility for locally authorized day care property tax credits. Eligible space must be used only for registered family or large family child care, or licensed child, elderly, or adult day care. The old requirement for completion after July 1, 1987, is removed. Local governments set credit amounts, duration, and terms; the annual credit cannot exceed $10,000 or the local property tax on that space, whichever is less. This credit is unavailable when the property qualifies for the separate business child care credit.

Sponsors & Cosponsors

Sponsor

Nancy J. King
Democratic • Senate

Cosponsors

Joanne C. Benson
Democratic • Senate
Shelly Hettleman
Democratic • Senate
Karen Lewis Young
Democratic • Senate
M. Jackson
Affiliation unavailable
Cory V. McCray
Democratic • Senate
Johnny Ray Salling
Republican • Senate
Craig J. Zucker
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 176 • No: 10

House vote • 4/2/2025

Third Reading Passed

Yes: 129 • No: 10

Senate vote • 3/12/2025