SB 774 Maryland Senate · 2025 Regular Session

Property Tax - Payment in Lieu of Taxes Agreements - Broadband Service Providers

SB 774 modifies Maryland's property tax valuation rules for rural broadband service providers. It requires the State Department of Assessments and Taxation to use only actual operating income (not projected earnings) when valuing their property under the income approach, and to reduce property value by any government subsidies or tax credits received under the replacement cost approach. This change directly affects rural broadband companies by potentially lowering their property tax burden. The bill ensures these providers are taxed based on real operational income and government benefits received, rather than full market value.

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

Apr 2025

Senate Passage

Apr 2025

House of Delegates Passage

Apr 2025

Signed into Law

Apr 2025

Introduced Jan 31, 2025 Signed Apr 22, 2025

Maddy AI version diff · 1 comparison

What changed between versions

First - Property Tax - Valuation of Operating Property of Rural Broadband Service Providers → Third - Property Tax - Payment in Lieu of Taxes Agreements - Broadband Service Providers · 4 edits

MODERATE

The bill was amended to shift its focus from exclusively addressing property tax valuation methods for rural broadband providers to also authorizing counties to negotiate payment-in-lieu-of-taxes agreements with broadband service providers. This change expands the bill's scope beyond just valuation rules to include a new mechanism for counties to offer tax exemptions in exchange for negotiated payments from broadband providers.

Scope change

The bill's scope expanded from solely addressing property tax valuation methods for rural broadband providers to also authorizing counties to enter into payment-in-lieu-of-taxes agreements with broadband service providers.

SCOPE

Added new Section 1 authorizing county governing bodies to enter into negotiated payment-in-lieu-of-taxes agreements with broadband service providers for property located in the county.

REQUIREMENT

Added requirements that agreements must specify annual payment amounts in lieu of county real and personal property taxes, and that property covered by the agreement must be exempt from county property taxes for the agreement term.

TITLE

Changed the bill title from focusing on 'Valuation of Operating Property' to include 'Payment in Lieu of Taxes Agreements' to reflect the expanded scope.

PURPOSE

Modified the bill's stated purpose to include authorizing counties to enter into payment-in-lieu-of-taxes agreements in addition to the existing property tax valuation provisions.

Floor votes · Senate Feb 23, 2025 · House of Delegates Mar 19, 2025

How they voted

46–0

Passed

Total votes 46

Feb 23, 2025

D Democratic33

33 Yea

100% Yea

R Republican13

13 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 22, 2025

Signed into law

Approved by the Governor - Chapter 208

executive

Apr 4, 2025

Upper · Passed

Returned Passed

upper

Apr 3, 2025

Lower · Passed

Third Reading Passed

lower

Apr 2, 2025

Lower · Passed

Favorable Adopted Second Reading Passed

lower

Apr 2, 2025

Lower · Passed

Favorable Report by Ways and Means

lower

Mar 19, 2025

House Of Delegates · Passed

House of Delegates Vote: pass (135-2-2)

house of delegates

Mar 13, 2025

Committee

Referred Ways and Means

lower

Mar 12, 2025

Upper · Passed

Third Reading Passed

upper

Mar 11, 2025

Upper · Passed

Favorable with Amendments {

upper

Mar 10, 2025

Upper · Passed

Favorable with Amendments Report by Budget and Taxation

upper

Feb 23, 2025

Senate · Passed

Senate Vote: pass (46-0)

senate

Jan 31, 2025

Committee

First Reading Budget and Taxation

upper

2 primary · 0 co-sponsors