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SB 344

Property Tax Credit - Retail Service Station Conversions

2025 Regular Session Introduced by Ben Brooks and 1 co-sponsor

Localities may grant property tax credits for converting former retail service stations to new uses, with potential 50% state reimbursement if funded.

Hearing 3/18 at 1:00 p.m.
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Bill Summary · SB 344

SB 344 — Property Tax Credit: Retail Service Station Conversions

Status: Introduced Jan. 16, 2025 (Senate, Budget & Taxation); Effective date (as written): June 1, 2025; applies to taxable years beginning after June 30, 2025. Companion: HB 341.

Main purpose

Authorize local governments (Baltimore City and county/municipal governing bodies) to create a local property tax credit for real property that has been converted from a retail service station to another retail use, a residential use, or a mixed retail/residential use — with the specific policy intent of helping defray costs tied to removing underground storage tanks (USTs) and remediating related contamination.

Key provisions

  • Local authority: The Mayor & City Council of Baltimore City or a county/municipal governing body may, by local law, grant a property tax credit against the local property tax on qualifying converted parcels.
  • Local control of program design: Local laws may specify
    • amount and duration of the credit,
    • additional eligibility criteria,
    • application/regulatory procedures, and
    • any other provisions needed to implement the credit.
  • Definitions and exclusions:
    • “Retail use” expressly excludes use as a discount store (defined in the bill as a store selling a mix of goods with the majority of items priced at $5 or less) and excludes self‑service storage facilities.
  • State reimbursement (budget contingent):
    • As provided in the State budget, the State is authorized (and in some versions described as required) to pay each county/municipality that grants the credit an amount equal to 50% of the property tax revenue that would have been collected had the credit not been granted. State payment is conditioned on appropriations/availability in the State budget.
  • Effective date: June 1, 2025; applies to taxable years beginning after June 30, 2025.

Who is affected

  • Property owners/developers who convert former retail service stations (gas stations) to eligible new uses — potential tax savings that can reduce redevelopment costs.
  • Local governments — authority to adopt credits, but potential reduction in property tax revenue if credits are granted.
  • State government — potential fiscal exposure if the State funds the 50% reimbursement (subject to appropriation).
  • Nearby residents and communities — potential environmental and economic benefits from remediation and site reuse.

Potential fiscal and policy impacts

  • Local revenues: Could decline to the extent localities adopt credits and grant them; localities control credit size/duration.
  • State expenditures: May increase if the State provides the 50% reimbursement and funds are appropriated; the actual cost depends on (a) number of qualifying conversions, (b) assessed values, and (c) credit design.
  • Redevelopment/cleanup incentives: By offsetting remediation and UST removal costs, the credit is likely to encourage redevelopment of potentially contaminated brownfield sites, support infill housing or retail, reduce blight, and limit public health risks from abandoned tanks/contamination.
  • Administrative effects: Local governments will need application and tracking processes; costs vary with program design and uptake.
  • Scale: Previous fiscal analyses of similar proposals noted thousands of properties classified as retail service stations in the State, implying potentially material—but uncertain—demand.

Procedural notes

  • The bill authorizes (but does not mandate) local governments to adopt credits; local enactments and credit terms vary.
  • State reimbursements are conditional on the State budget—if not appropriated, localities would bear full revenue impacts.

For local officials and developers, the bill creates a flexible tool to encourage conversion of former service stations while linking potential State support to the annual budget process.

Compiled from official sources — confirm details with the bill’s official record.

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