Maryland Code, TAX – PROPERTY 7-502
Terms Used In Maryland Code, TAX - PROPERTY 7-502
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- state: means :
(1) a state, possession, territory, or commonwealth of the United States; or
(2) the District of Columbia. See
(2) Real property that meets the requirements of subsection (b) of this section is not subject to property tax if:
(i) the owner of the real property is:
1. a person who meets the ownership requirements of § 7-202 of this title; or
2. a nonprofit corporation that is exempt from income tax under § 10-104 of the Tax – General Article; and
(ii) the owner of the real property is engaged solely in constructing, operating, or managing multifamily rental housing and other related essential service facilities that:
1. are newly constructed on and after September 24, 1959;
2. are financed for at least 95% of the cost from loan funds provided under the National Housing Act of 1959 for senior citizen housing programs; and
3. are operated on a nonprofit basis with the revenues from the operation of the housing and facilities controlled by the loan program in order not to produce any net income.
(b) The real property described in subsection (a) of this section may be exempt from property tax only if:
(1) the governing body of the subdivision where the real property is located approves an agreement between the subdivision and the owner; and
(2) under the agreement the owner pays the subdivision a negotiated amount in lieu of property tax.
(c) An agreement under subsection (b) of this section may provide for abating or reducing property tax previously imposed on the real property.
(d) Any payment negotiated under this section in lieu of the property tax shall be divided between the State and the subdivision, in the ratio that the tax rate of the State and the subdivision each bears to the total of the tax rates of the State and the subdivision.