Property Taxes - Authority of Counties to Establish a Subclass and Set a Special Rate for Personal Property of Data Centers

SB 427 allows Maryland counties and Baltimore City to create a special tax subclass for qualified data centers' personal property (like servers and equipment), setting a separate tax rate for these facilities. To qualify, a data center must invest $2 million (in Tier I areas) or $5 million (elsewhere) and create at least five jobs within three years. Local governments can set a special tax rate for this subclass, though it must remain within the existing 2.5x cap for personal property taxes. The law takes effect June 1, 2026, applying to tax years beginning after June 30, 2026. This directly affects data centers meeting the investment and job criteria in participating jurisdictions.