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SB 774

Supplemental appropriation to Department of Health, WV Birth to Three Fund

2025 Regular Session Introduced by Mike Woelfel

SB 774 — Property Tax; Payment‑in‑Lieu‑of‑Taxes (PILOT) Agreements for Broadband ProvidersStatus: Approved by the Governor — Chapter 208 (April 22, 2025) Introduced: February 21,

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Bill Summary · SB 774

SB 774 — Property Tax; Payment‑in‑Lieu‑of‑Taxes (PILOT) Agreements for Broadband Providers

Status: Approved by the Governor — Chapter 208 (April 22, 2025)
Introduced: February 21, 2025
Primary sponsors (Maryland): Senators Hershey and Zucker
Effective date: June 1, 2025; applies to taxable years beginning after June 30, 2025

Purpose / Intent

The law seeks to encourage deployment and operation of broadband service (particularly in rural areas) by:
- Allowing counties to negotiate PILOT agreements with broadband providers, and
- Directing the State Department of Assessments and Taxation (SDAT) to value rural broadband operating property using methods that reflect actual operating conditions and public subsidies.

Key provisions

  1. Valuation rules (amendment to Tax‑Property § 8‑109)

    • For a provider of rural broadband service, when SDAT uses an income approach it must consider only actual operating income (not hypothetical/projected income).
    • When SDAT uses a replacement‑cost approach, the replacement cost valuation must be reduced (offset) by any contributions, tax credits, subsidies, or other government benefits received.
    • SDAT may use the replacement‑cost approach only if that value is lower than the value determined by the income approach.
    • SDAT may adopt regulations to implement these provisions.

  2. County PILOT authority (new Tax‑Property § 7‑522)

    • A county governing body may enter into a negotiated PILOT agreement with a broadband services provider located in the county.
    • A PILOT may specify an annual negotiated payment in lieu of county real and personal property taxes.
    • During the PILOT term, all or part of the provider’s real and personal property located in the county may be exempt from county property tax as set out in the agreement.

Who is affected

  • Broadband service providers (especially rural providers) — potential for lower assessed values and negotiated fixed payments.
  • County governments — new authority to strike PILOTs and discretion to negotiate terms and revenue tradeoffs.
  • SDAT — must apply the new valuation rules and may promulgate implementing regulations.
  • Local taxpayers/municipal revenues — county property tax bases could be altered depending on negotiated agreements.

Fiscal and policy impacts

  • State-level fiscal effect: none specified.
  • Local-level: potential reduction in county property tax revenue beginning in FY 2026 where PILOTs are used; actual fiscal effects depend on each negotiated agreement. PILOT payments are intended to mitigate revenue loss and to incentivize broadband investment in underserved/rural areas.

Implementation / Timing

  • Law effective June 1, 2025; applies to taxable years after June 30, 2025.
  • Counties and providers may begin negotiating PILOTs; SDAT to apply new valuation rules for affected property and may issue regulations.

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

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