Bill
HB 598
Anne Arundel County may grant a local personal-property tax credit to supermarkets that build or renovate in designated food-desert areas, offsetting up to their tax bill.
Note on scope
- Multiple, unrelated bills in different states are labeled “HB 598” in the materials you provided. This summary focuses on the Anne Arundel County – Property Tax Credit – Supermarkets measure (Maryland HB 598 / cross-file SB 131), because the fiscal note, bill text, and enacted chapter included in the packet all concern that measure.
Summary — Anne Arundel County: Property Tax Credit for Supermarkets (HB 598 / Ch. 177, 2025)
Purpose
- Authorize Anne Arundel County and its municipalities to grant a local personal‑property tax credit to supermarkets that complete eligible construction and locate in a county‑designated “food desert retail incentive area.” The intent is to encourage new supermarkets or substantial renovations in underserved food‑access areas.
Key provisions
- New Code provision added to Md. Tax‑Property §9‑303(b)(8).
- Definitions:
- “Eligible construction” = construction of a new supermarket or substantial renovation of an existing supermarket.
- “Supermarket” = grocery store meeting all of: major food departments (produce, meat, seafood, dairy, canned/packaged goods); >50% of total sales from food; and >50% of total floor space dedicated to food sales.
- Authority and limits:
- The Anne Arundel County governing body and municipal corporations MAY, by local law, grant a property tax credit against the personal‑property tax on personal property owned by a qualifying supermarket located in a county‑designated food desert retail incentive area.
- The locality MUST, by law, designate what constitutes a “food desert retail incentive area.”
- The credit for any taxable year may not exceed the amount of personal‑property tax imposed on the supermarket’s personal property for that year (i.e., it can fully offset that tax but not produce a refund).
- Localities may (by law) set cumulative limits on credits, additional per‑project limits, further eligibility criteria for supermarkets and construction, and any other provisions necessary to implement the program.
- Cross‑references and precedent: The bill is modeled after similar local credits enacted previously for Baltimore County, Prince George’s County, and Baltimore City, and complements a prior statewide low‑income grocery store credit.
Who is affected
- Primary beneficiaries: Supermarkets that undertake eligible construction and locate or renovate in designated food‑desert retail incentive areas in Anne Arundel County or its municipalities.
- Local governments: Anne Arundel County and its municipalities (they gain authority to enact the credit and must define incentive areas).
- Local taxpayers: County and municipal personal‑property tax revenues will fall to the extent credits are granted; the magnitude depends on how many projects qualify, assessed personal‑property values, and local credit limits.
- Small businesses: The fiscal note indicates a “potential meaningful” effect for small businesses (e.g., opportunities for grocers / developers).
Fiscal and timeline details
- State fiscal effect: None.
- Local fiscal effect: Personal‑property tax revenue decreases beginning in FY2026 to the extent credits are granted. (FY2025 rates cited in the fiscal note: Anne Arundel County personal‑property tax = $2.457 per $100 of assessment; City of Annapolis = $1.467; Highland Beach = $2.382; example municipal rates noted.)
- Effective date: Takes effect June 1, 2025, and applies to taxable years beginning after June 30, 2025.
- Legislative status (from included documents): Reported favorably, enacted as Chapter 177 and approved by the Governor (signed April 22, 2025). Cross‑file: SB 131.
Implications / considerations
- Localities retain broad discretion to design the program (area definitions, credit limits, eligibility rules), so net revenue impacts and program uptake will vary by municipality and county law.
- The credit targets improved food access by incentivizing supermarket investment in designated areas; effectiveness will depend on how incentive areas and eligibility are defined, and whether the credit is sufficiently attractive relative to project costs.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
