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SB 596

Relating to parents' Bill of Rights

2025 Regular Session Introduced by Mark Maynard and 1 co-sponsor

The bill exempts property owned by The Hagerstown Multi‑Use Sports and Events Facility, Inc. from tax but allows a negotiated PILOT in lieu of taxes.

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Bill Summary · SB 596

SB 596 — Property Tax Exemption & PILOT: The Hagerstown Multi‑Use Sports and Events Facility, Inc.

Status: Approved by the Governor — Chapter 428

Main purpose

Authorize a property tax exemption for the Hagerstown Multi‑Use Sports and Events Facility, Inc., allow the facility to enter into a negotiated payment‑in‑lieu‑of‑taxes (PILOT) agreement with local governments, and modify an existing Washington County property‑tax credit program to update eligibility thresholds, credit amounts, and durations for qualifying economic‑development projects.

Key provisions

  • Adds new §7‑251 (Tax‑Property):

    • Exempts from property tax any property owned by The Hagerstown Multi‑Use Sports and Events Facility, Inc., if the property is used primarily for public social, recreational, and entertainment purposes.

  • Adds new §7‑522 (Tax‑Property):

    • Notwithstanding the exemption, permits The Hagerstown Multi‑Use Sports and Events Facility, Inc. to pay the governing body of Washington County or the City of Hagerstown an agreed amount (a PILOT) in lieu of taxes on all or part of the facility.

  • Amends §9‑323(f) (Washington County property‑tax credit for economic development):

    • Revises eligibility criteria and definitions (e.g., “new, renovated, or expanded premises,” “new permanent full‑time position”).
    • Raises investment and job thresholds for the highest‑value credit tier (capital investment threshold increased from $10 million to $20 million; required new permanent jobs increased from 100 to 200).
    • Increases minimum square‑footage and minimum new job counts for other tiers (e.g., existing businesses now must add 1,500 sq ft and 5 new full‑time positions; new businesses must add 2,500 sq ft and 25 new full‑time positions).
    • Adjusts credit percentages and timing across tiers (examples):
    • Existing business tier: credit equals 55% of county property tax in the first taxable year, 40% in the second, and 25% in the third year.
    • New business tier: 55% in years 1–2; 40% in years 3–4; 25% in years 5–6.
    • Large‑investment tier: credits are phased (e.g., 75% for each of the first 5 years, then progressively reduced across later years) — the statute specifies a multi‑year declining schedule.
    • Requires pre‑notification to the county governing body and contains lease/lessor credit adjustments and compliance rules.

Who is affected

  • Primary beneficiary: The Hagerstown Multi‑Use Sports and Events Facility, Inc. (property exemption; option to negotiate PILOT).
  • Local governments: Washington County and the City of Hagerstown (loss of property tax on the facility unless a PILOT is negotiated).
  • Businesses and developers in Washington County: revised tax‑credit program changes incentives for expansions, new location decisions, and large capital projects.
  • State: minor effect through reduced Annuity Bond Fund (ABF) property tax revenues tied to statewide debt‑service allocations.

Fiscal impact (estimated)

  • State ABF revenues: decrease of approximately $40,100 annually beginning FY 2026.
  • Local government revenues: estimated annual decreases beginning FY 2026 — Washington County: about $287,800; City of Hagerstown: about $359,200.
  • The fiscal note indicates local revenue losses may be mitigated if the parties negotiate PILOT payments.

Procedural / effective date

  • Effective: per enrolled/fiscal documents, the bill takes effect June 1, 2025 and applies to taxable years beginning after June 30, 2025.
  • Status: Enacted as Chapter 428; Approved by the Governor.

Notes / implications

  • The exemption is narrowly targeted to a single named nonprofit corporate owner and public‑use purpose; the PILOT option provides a flexibility tool for local governments to recover revenues.
  • The larger changes to Washington County’s economic development tax‑credit program make the credit more demanding (higher jobs and investment thresholds) but also adjust credit levels and timing to incentivize larger, longer‑term projects.
  • Local fiscal impacts depend on whether PILOT agreements are negotiated and on which projects claim the revised tax credits.

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

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