Except as otherwise provided in subsection (b) of this section, property owned by an individual or a religious group is not subject to property tax if the property is actually used exclusively to bury dead individuals. Property owned by a cemetery or mausoleum company is not subject to property tax, if: the property is actually used exclusively to bury dead individuals; and the cemetery or mausoleum company: is not organized for profit; and uses its funds only to maintain or improve the property.

In this section: “fraternal organization” means any organization that: is conducted solely for the benefit of its members and its beneficiaries; is operated on a lodge system with a ritualistic activity; and has a representative form of government; “fraternal organization” includes a sororal organization; and “fraternal organization” does not include: any college or high school fraternity or sorority; or any other fraternal or sororal organization the membership of which is restricted wholly or largely to students or graduates of an educational institution or a professional school. Except as provided in subsection (c) of this section and § 6–302(d) of this article and subject to § 7–204.1 of this subtitle, property is not subject to property tax if the property: is necessary for and actually used exclusively for a charitable or educational purpose to promote the general welfare of the people of the State, including an activity or an athletic program of an educational institution; and is owned by: a nonprofit hospital; a nonprofit charitable, fraternal, educational, or literary organization including: a public library that is authorized under Title 23 of the Education Article; and a men’s or women’s club that is a nonpolitical and nonstock club; a corporation, limited liability company, or trustee that holds the property for the sole benefit of an organization that qualifies for an exemption under this section; or a nonprofit housing corporation. The exemption under paragraph (1)(ii)1 of this subsection includes any personal property initially leased by a nonprofit hospital for more than 1 year under a lease that is noncancellable except for cause. This subsection does not apply to real property owned by a nonprofit charitable museum that: is open to the public; and does not charge an admission fee. Except for a nonprofit hospital, not more than 100 acres of real property owned by an exempt organization and appurtenant to the premises of the exempt organization is exempt from property tax, if the property is located outside of a municipal corporation or Baltimore City. Not more than 100 acres of real property of a nonprofit hospital that is appurtenant to the hospital is exempt from property tax. Notwithstanding § 7–104 of this title and after filing the application provided by § 7–103 of this title, property tax on any property that is transferred to a nonprofit charitable organization is abated from the date during the taxable year when the instrument transferring title to the organization is recorded if: the property is transferred to a nonprofit charitable organization qualified under § 501(c)(3) of the Internal Revenue Code; the property becomes exempt under this section; the property has a value less than $300,000 as listed in the records of the Department on the date when the instrument transferring title to the organization is recorded; and the nonprofit charitable organization provides the Department evidence of the property tax it actually paid or reimbursed at the property settlement. The amount of property tax abated under this subsection may not exceed the amount of property tax actually paid or reimbursed by an eligible organization at the property settlement.

Property is not subject to property tax if the property: is owned by the Chesapeake Bay Foundation, Inc.; and is used solely for: the environmental education of the public; or the maintenance of: a natural area for public use; or a sanctuary for wildlife.

Except as provided in § 6–302(d) of this article and subject to § 7–204.1 of this subtitle, property that is owned by a religious group or organization is not subject to property tax if the property is actually used exclusively for: public religious worship; a parsonage or convent; or educational purposes.

An organization that owns property in Baltimore City that is not subject to property tax as of June 1, 2014, under § 7–202 or § 7–204 of this subtitle shall submit an application to the Department in accordance with this section: beginning with April 1, 2016, on or before the earlier of April 1 of the year in which the property is assessed in accordance with the Department’s 3–year cycle or April 1, 2017; and on or before April 1 of each subsequent year in which the property is assessed in accordance with the Department’s 3–year cycle. The application shall: be made on the form that the Department provides; certify that each property owned by the organization in Baltimore City that is not subject to property tax is in current actual use for a tax–exempt purpose as enumerated in § 7–202 or § 7–204 of this subtitle; and include a statement by a representative of the organization under oath that the facts stated in the application are true, correct, and complete. A property subject to this section for which an application has not been filed on or before April 1 of a year in which an application is due under subsection (a) of this section shall be subject to property tax effective the following July 1. A property for which an application is filed after April 1 of a year in which an application is due under subsection (a) of this section is not subject to property tax effective: the next taxable year if the application is received on or after July 1 but on or before April 1; or the second following taxable year if the application is received after April 1 but before July 1. An organization that owns property subject to this section shall notify the Department and the Director of Finance of Baltimore City within 30 days after the property ceases to be used for a tax–exempt purpose as enumerated in § 7–202 or § 7–204 of this subtitle.

A person who applies for an exemption under § 7–202 or § 7–204 of this subtitle for real property in Baltimore City may request that the exemption be applied retroactively for a period of up to 3 taxable years, ending with the taxable year in which the application is filed. Subject to subsection (c) of this section and notwithstanding any other provision of this article: the Department shall grant an exemption for all eligible taxable years to a person who requests a retroactive exemption under this section; and Baltimore City and the State shall pay a refund to the person for any excess taxes paid due to a retroactive exemption granted under this section. A retroactive exemption granted by the Department under this section: is subject to the review and approval of the Baltimore City Solicitor and Baltimore City Department of Finance; and may be granted only on a showing of good cause as to why the exemption was not applied for in a timely manner. On or before December 1, 2023, and each December 1 through December 1, 2027, the Baltimore City Department of Finance shall submit to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly a report that indicates: the number of requests for a retroactive exemption under this section that the Baltimore City Department of Finance received and approved during the immediately preceding year; and any amounts refunded for a retroactive exemption under this section.

Property that is owned by any nonprofit community water corporation is not subject to property tax if the corporation: is owned by a majority of the lot owners in the area that the water system serves; and charges a rate that is sufficient only to pay for the cost of operating the system.

In this section, “facility” means a continuing care facility for the aged that: provides continuing care as defined in § 10–401 of the Human Services Article; is licensed as a related institution under Title 19, Subtitle 3 of the Health – General Article; is certified by the Department of Aging; and is exempt from federal income tax under § 501(c)(3) of the Internal Revenue Code. Property that is not otherwise exempt from taxation under this section or § 7-202 of this subtitle is not subject to property tax if the property: is owned by a facility; and is used: exclusively for religious worship; exclusively for administration or for providing nonprofit services and activities to residents, including that part of land reasonably allocable to providing the administration, activities, or services, but may not include independent living units; however, nothing in this paragraph affects those independent living units qualifying for exemption under § 7-202 of this subtitle; or to provide nursing care, domiciliary care, or comprehensive care including: the part of any central administrative or service facility that is reasonably allocable to the licensed health care part of the facility; or the part of any land that is reasonably allocable to the licensed health care part of the facility.

In this section the following words have the meanings indicated. “Blind individual” means an individual who has a permanent impairment of both eyes that causes: central visual acuity, with corrective glasses, of 20/200 or less in the better eye; or central visual acuity of more than 20/200 if there is a field defect in which the peripheral field has contracted so that the widest diameter of visual field subtends an angular distance no greater than 20 degrees in the better eye. “Dwelling house”: means real property that is: the legal residence of a blind individual or a surviving spouse; and occupied by not more than 2 families; and includes the lot or curtilage, and structures necessary to use the real property as a residence. “Surviving spouse” means the surviving spouse of a blind individual, if the surviving spouse has not remarried. Except as provided in subsection (d) of this section, a dwelling house is exempt from property tax to the extent of $40,000 of its assessment if the dwelling house is owned by: a blind individual; or a surviving spouse. Except as provided in subsection (d) of this section, after a blind individual dies, the surviving spouse shall receive an exemption under this section, if the dwelling house was formerly exempt under this section. Except as provided in paragraph (2) of this subsection, an exemption under this section shall be granted in addition to any other exemption authorized by law. An individual may receive an exemption under this section or under § 7–208 of this subtitle but not under both. An exemption under this section shall be prorated by the supervisor for any part of a taxable year that remains after the date in the year when the blind individual or surviving spouse applies for the exemption. The governing body of a county or a municipal corporation may authorize, by law, a refund to a blind individual who receives an exemption under this section for any county or municipal corporation property tax paid in the taxable years in which an exemption was authorized but not granted. A county or municipal corporation may not authorize a refund for a surviving spouse.

In this section the following words have the meanings indicated. “Disabled active duty service member” means an individual in active military, naval, air, or space service who has a service connected physical disability that: is reasonably certain to continue for the life of the service member; and was not caused or incurred by misconduct of the service member. “Disabled veteran” means an individual who: is a veteran; and has been declared by the U.S. Department of Veterans Affairs to have a permanent 100% service connected disability that results from blindness or other disabling cause that: is reasonably certain to continue for the life of the veteran; and was not caused or incurred by misconduct of the veteran. “Disabled veteran” includes an individual who qualifies posthumously for a 100% service connected disability. “Dwelling house”: means real property that is: the legal residence of a disabled active duty service member, disabled veteran, or surviving spouse; and occupied by not more than 2 families; and includes the lot or curtilage and structures necessary to use the real property as a residence. “Individual who died in the line of duty” means an individual who died while in the active military, naval, air, or space service as a result of an injury or disease that is deemed under 38 U.S.C. § 105 to have been incurred in the line of duty. “Surviving spouse” means an individual who has not remarried and who: is the surviving spouse of a disabled veteran; is the surviving spouse of an individual who died in the line of duty; or receives Dependency and Indemnity Compensation from the U.S. Department of Veterans Affairs. Except as provided in subsection (e) of this section, a dwelling house is exempt from property tax if: the dwelling house is owned by: a disabled active duty service member; a disabled veteran; a surviving spouse of an individual who died in the line of duty, if: the dwelling house was owned by the individual at the time of the individual’s death; the dwelling house was acquired by the surviving spouse within 2 years of the individual’s death, if the individual or the surviving spouse was domiciled in the State as of the date of the individual’s death; or the dwelling house was acquired after the surviving spouse qualified for exemption for a former dwelling house under item 1 or 2 of this item, to the extent of the previous exemption; or a surviving spouse of a disabled veteran who meets the requirements of subsection (c) of this section; and the application requirements of subsection (d) of this section are met. Except as provided in subsections (d) and (e) of this section, after a disabled veteran dies, the surviving spouse of the disabled veteran shall receive a disabled veteran’s property tax exemption: for the dwelling house that was formerly owned by the disabled veteran: if the dwelling house received an exemption under this section; and if the surviving spouse owns and resides in the dwelling house; for the dwelling house that was formerly occupied by the disabled veteran: if the dwelling house did not receive an exemption under this section; if the disabled veteran was domiciled in the State at death; and if the surviving spouse owns and resides in the dwelling house; and for a dwelling house subsequently acquired by the surviving spouse, equal to the exemption for the former dwelling house when the dwelling house owned by the surviving spouse was transferred by the surviving spouse: if the surviving spouse owns and resides in the subsequently acquired dwelling house; and if the surviving spouse has qualified under item (1) or (2) of this subsection. A disabled veteran or a surviving spouse of a disabled veteran shall apply for an exemption under this section by providing to the supervisor: a copy of the disabled veteran’s discharge certificate from active military, naval, air, or space service; and on the form provided by the Department, a certification of the disabled veteran’s disability from the U.S. Department of Veterans Affairs; or a rating decision of the disabled veteran’s disability from the U.S. Department of Veterans Affairs that includes the effective date of the rating decision. The disabled veteran’s certificate of disability or rating decision may not be inspected by individuals other than: the disabled veteran; or appropriate employees of the State, a county, or a municipal corporation. A disabled active duty service member shall apply for an exemption under this section by providing to the supervisor, on the form provided by the Department, a certification of the service member’s disability from a physician licensed to practice medicine in the State or from the U.S. Department of Veterans Affairs. A surviving spouse of an individual who died in the line of duty shall apply for an exemption under this section by providing to the supervisor certification that the individual died while in active service as a result of an injury or disease incurred in the line of duty. An individual may submit, and the Department shall accept, an application for the exemption under this section for a specific dwelling house the individual intends to purchase before the individual purchases the dwelling house. The Department, within 15 business days following receipt of an application submitted under subparagraph (i) of this paragraph, shall process the application and send the applicant a letter stating: that the application is preliminarily approved or preliminarily denied; and if the application is preliminarily approved, the amount of the tax exemption for the dwelling the individual intends to purchase. An individual who is issued a letter preliminarily approving the exemption shall receive the exemption for the dwelling referenced in the letter after becoming the owner of the dwelling without having to file another application. Except as provided in paragraph (2) of this subsection, an exemption under this section shall be granted in addition to any other exemption authorized by law. An individual may receive an exemption under this section or under § 7–207 of this subtitle but not under both. An exemption under this section is prorated by the supervisor for any part of a taxable year that remains after the date in the year when the disabled active duty service member, disabled veteran, or surviving spouse applies for the exemption. Notwithstanding any other provision of this article and except as provided in subparagraph (ii) of this paragraph, if a dwelling is transferred to a disabled active duty service member, disabled veteran, or surviving spouse who qualifies for an exemption under this section, the exemption applies and the property tax is abated from the date of settlement for the purchase of the property, if the transferee applies for the exemption within 30 days after the settlement for the purchase of the property. Notwithstanding § 7–104 of this title and for any taxable year beginning on or after July 1, 2018, the governing body of Montgomery County may authorize, by law, an abatement of any overdue property tax: on a dwelling transferred to a disabled active duty service member, disabled veteran, or surviving spouse who applies for and qualifies for an exemption under this section; and for which the transferee is liable. The Department shall adopt regulations to administer the provisions of paragraph (2)(i) of this subsection. Subject to paragraphs (2) and (3) of this subsection, in the taxable years in which an exemption under this section was authorized but not granted, the State, a county, or a municipal corporation shall pay a refund to an individual described below who receives an exemption under this section: to a disabled active duty service member, disabled veteran, or surviving spouse for any State property tax paid; to a disabled active duty service member, disabled veteran, or surviving spouse for any county property tax paid; or to a disabled active duty service member or disabled veteran for any municipal corporation property tax paid. A disabled active duty service member or disabled veteran may apply for a refund of State, county, and municipal corporation property tax paid on the dwelling house while the exemption was available only if the disabled active duty service member or disabled veteran applies for the exemption during the 3–year period beginning with the calendar year in which the disabled active duty service member or disabled veteran initially became eligible for an exemption under this section. A surviving spouse may apply for a refund of State, county, and municipal corporation property tax paid on the dwelling house while the exemption was available, only if the surviving spouse applies for the exemption during the 3–year period beginning with the calendar year in which the surviving spouse initially became eligible for an exemption under this section. For the purposes of subsections (f) and (g) of this section, the State, a county, or a municipal corporation shall pay to a disabled active duty service member, disabled veteran, or surviving spouse interest on the amount of a refund if: the disabled active duty service member, disabled veteran, or surviving spouse is eligible and has applied for the refund; and the State, county, or municipal corporation fails to make the refund within 60 days after the eligible disabled active duty service member, disabled veteran, or surviving spouse has applied for the refund. If interest is payable under this subsection: the State shall pay interest at the rate the State charges on overdue taxes; the county or municipal corporation shall pay interest at the rate the county or municipal corporation charges on overdue taxes; and interest shall accrue from the date the refund application is filed with the State, county, or municipal corporation. Each county shall include information on the property tax bill about the availability of the property tax exemption for disabled active duty service members, disabled veterans, and surviving spouses authorized under this section.

Property is not subject to property tax if the property: is owned by an incorporated, nonprofit fire company or rescue squad; and is necessary for and actually used exclusively for the purposes of the fire company or rescue squad, including property that: is used for: training; or fund raising at carnivals or bazaars; is held in an advanced land acquisition program of the fire company or rescue squad; is leased for not more than 60 days during any 12–month period, if: the property is used for a purpose that is related to the purposes of the fire company or rescue squad; and the rent that is received from the property is used exclusively for the purposes of the fire company or rescue squad; is leased to any nonprofit organization, if: the property is used for a purpose that is related to the purposes of the fire company or rescue squad; and the rent that is received from the property is used exclusively for the purposes of the fire company or rescue squad; or is used as a residence for an individual who: is responsible for taking care of property owned by the fire company or rescue squad; is a member of the fire company or rescue squad; is not an employee of the fire company or rescue squad; and is not under an obligation to pay for the use of the property. The exemption under subsection (a) of this section applies in Baltimore County only if real property owned by an incorporated, nonprofit fire company or rescue squad located in Baltimore County: is actually used exclusively for the purposes of the fire company or rescue squad; or is not used for any purpose but will be actually used exclusively for the purposes of the fire company or rescue squad in the future.

Except as otherwise provided in § 6-102 of this article and except as otherwise provided under this section, government-owned property is not subject to property tax, if the property: is devoted to a governmental use or purpose; and is owned by: the federal government; the State; a county or a municipal corporation; or an agency or instrumentality of the federal government, the State, a county, or of a municipal corporation. The exemption provided for the property owned by an agency or instrumentality in subsection (a)(2)(iv) of this section applies only to the extent that a law exempts the property.

In this subsection, “national defense” includes homeland security. An interest of a person in personal property of the federal government or of the State is not subject to property tax if the person holds an interest in the property under a contract with the federal government or the State for: manufacturing, constructing, or assembling equipment, supplies, or component parts for national defense purposes; or research or development for national defense purposes. An interest of a person in personal property or real property of the federal government or of the State is not subject to property tax if that property: is situated on land that is owned by the federal government and located within the defined boundaries of a military installation; and is used for national defense purposes or for housing for military personnel and their families. This subsection does not apply to: property owned by the Maryland-National Capital Park and Planning Commission in Prince George’s County that is located in a public airport and is used for a restaurant concession; and property owned by the Canal Place Preservation and Development Authority in Allegany County if: the property is leased for a concession for a term of 10 years or more; or the lessee has made a capital investment in the property or improvements on the property in excess of $500,000. An interest of a person in property of the federal government, the State, a county, or a municipal corporation is not subject to property tax, if the property is used for a concession that: is located in a public airport, park, market, or fairground; and is available for use by the general public. Except for an interest in federal enclave property as defined in § 7–211.3 of this subtitle, an interest of a person in any property of the federal government or the State is not subject to property tax, if the government that owns the property makes negotiated payments in lieu of tax payments. Land owned by the federal government that is the location for federal enclave property as defined in § 7–211.3 of this subtitle is not subject to property tax. In this subsection, “port facility” includes at least 1 or a combination of: lands, piers, docks, wharves, warehouses, sheds, transit sheds, elevators, compressors, refrigeration storage plants, buildings, structures, and other facilities, appurtenances, and equipment that is useful or designed for use in connection with shipbuilding, ship repair, or the operation of a port; every kind of terminal, storage structure, or facility that is useful or designed for use in handling, storing, loading, or unloading freight or passengers at marine terminals; and every kind of transportation facility that is useful or designed for use in connection with any of these. An interest of a person in property in a port facility that is owned by the federal government or the State, any of their agencies or instrumentalities, or a county or municipal corporation is not subject to the property tax. An interest of a person in property in an international trade center as described in § 6-101(e)(4) of the Transportation Article, is not subject to property tax, if the State, or any agency or instrumentality of the State: owns the property; and makes negotiated payments in lieu of tax payments. An interest of a person in personal property in a vending facility operated under the Maryland Vending Program for the Blind is not subject to the property tax. In this subsection, “public senior higher education institution” has the meaning stated in § 10-101 of the Education Article. An interest of a person in property of the State is not subject to property tax if the person holds an interest in the property under a lease agreement with the State to use the property to provide housing to students of public senior higher education institutions. A public senior higher education institution may negotiate a payment-in-lieu-of-taxes agreement with the municipal corporation or county in which the property specified in paragraph (2) of this subsection is located. In this subsection, “bus passenger shelter” means: a bus passenger shelter as defined in § 8–750 of the Transportation Article; or a shelter located at a designated transit bus stop on a campus of a public senior higher education institution as defined in § 10–101 of the Education Article. An interest of a person in property of the State, county, or a municipal corporation or any agency or instrumentality of the State, county, or a municipal corporation is not subject to property tax: if the person holds an interest in the property under an agreement with the State, county, or municipal corporation under § 8–751 or § 8–752 of the Transportation Article to operate a bus passenger shelter; or if the person holds an interest in the property under an agreement with a public senior higher education institution to operate a bus passenger shelter. An interest of a person in personal property that is located on property owned by the State is not subject to property tax if the personal property is a crane used for cargo handling purposes.

Property is not subject to property tax if the property: is actually used exclusively for heating, cooling, or generation or distribution of electricity for property owned and occupied by the State; and was not subject to property taxation for the taxable year beginning July 1, 1996.

In this section, “national defense” includes homeland security. Personal property or real property is not subject to property tax if the federal government holds at least a 50% interest in the property, or the entity that owns the property, and the property: is situated on land that is owned by the federal government and located within the defined boundaries of a military installation; and is used for national defense purposes or for housing for military personnel and their families.

In this section the following words have the meanings indicated. “Federal enclave property” means real property improvements or an interest in real property improvements: that are located within the defined boundaries of federally owned land where: the federal jurisdiction would preclude taxation by the State; and the federal government has waived its immunity from State property taxation by law or other form of consent; that are either: owned by a person other than the federal government; or held by a person that is taxable under § 6–102(e) of this article; and that are not otherwise exempt under this title or any other provision of law. “Federal enclave property” does not include any property owned by the United States Department of Veterans Affairs that is leased to a person through an enhanced use lease. “Local jurisdiction” means a county and, where appropriate, a municipal corporation in which federal enclave property is located. “Private developer” means a person, other than the federal government or an agency thereof, that owns federal enclave property or holds an interest or privilege under § 6–102(e) of this article in federal enclave property. Subject to the provisions of this section and on initiation by the local jurisdiction where the federal enclave property is located, the local jurisdiction and the State may jointly enter into a payment in lieu of tax agreement with a private developer for federal enclave property. An agreement authorized under paragraph (1) of this subsection is not effective until it is approved by the federal government. A local jurisdiction shall initiate any discussions to negotiate a payment in lieu of tax agreement with a private developer of federal enclave property no later than 30 days after receiving written notice by the private developer or the federal government that a development has been proposed for the federal enclave property. When any discussions to negotiate a payment in lieu of tax agreement have commenced, the Maryland Department of Transportation shall notify the Legislative Policy Committee within 30 days. Federal enclave property is not subject to property tax if a private developer enters into a payment in lieu of tax agreement with the State and the local jurisdiction where the federal enclave property is located. The parties to an agreement under this subsection and the federal government shall consider the total impact and benefits of the development of the federal enclave property on the State and on local jurisdictions, including but not limited to: the impact on local and regional transportation; future economic development; the financial resources of the local jurisdiction; the environment; natural resource allocation; infrastructure capacity; employment; disadvantaged business enterprises, minority business enterprises, and small business enterprises; the availability and use of public services; in–kind contributions related to the development, including the services, facilities, personal and real property, traffic mitigation, rights–of–way, and other assets and benefits of the federal government or the private developer made available to and used by the public; and any other matter impacted by the development of the federal enclave property. An agreement under this subsection shall be approved and signed by the Maryland Department of Transportation, on behalf of the State, any party responsible for making a required payment or fulfilling any other provision of the agreement, and the governing body of the local jurisdiction where the federal enclave property is located. The Maryland Department of Transportation shall seek consultation with any local jurisdiction impacted by the development of the federal enclave property. The private developer shall make a payment, if any, in lieu of property taxes to the county tax collector for the county where the federal enclave property is located in an amount and at a time determined by the agreement under this subsection. The payment required by an agreement under this subsection may not exceed the property tax that would otherwise be due to the State and local jurisdiction if the payment in lieu of tax agreement were not in effect. The payment received under paragraph (7) of this subsection shall be distributed by the tax collector in accordance with the agreement under this subsection to: a dedicated fund specifically designated in the agreement as a contribution to the cost of a specific public improvement associated with the development of the federal enclave property; or the State, county, and, if applicable, municipal corporation where the federal enclave property is located in the ratio stated in the agreement. An agreement under this subsection may provide for abating or reducing property tax previously imposed on the federal enclave property. The Maryland Department of Transportation may adopt regulations to implement this section, in consultation with: the Department; the Department of Commerce; the Department of the Environment; the Department of Housing and Community Development; and the Department of Planning.

Property is not subject to property tax if the property: is owned by the Gunpowder Youth Camps, Inc.; and is used exclusively as a nonprofit youth camp.

Property is not subject to property tax if the property: is owned by a nonprofit historical society, museum, or academy, the purposes of which are solely to study the history of or to maintain and preserve historic homes, places, and personal property for the use and benefit of the public; and is actually used exclusively for the purposes of any of these organizations. Up to 15 acres of property is not subject to property tax if the property: is owned by a nonprofit organization for the purpose of maintaining a commemorative park or site for a monument to the veterans of the armed services of: the United States; or the Confederate States of America; and is actually used exclusively for the purposes of these organizations.

In this section, “authority” means an authority as defined in § 12-101 of the Housing and Community Development Article. Subject to subsection (c) of this section, the property of an authority is not subject to property tax. An authority shall make a payment, if any, to the county and any municipal corporation that has a population of more than 1,000 in which any part of the exempt property is located in an amount determined by agreement with the county and the municipal corporation. The payment may not be greater than the property tax that would have been payable without this section. Notwithstanding § 7-104 of this title and after filing the application provided by § 7-103 of this title, property tax on any property that becomes exempt under this section is abated from the date during the taxable year when the instrument transferring title to the authority was recorded.

Property is not subject to property tax if: the property is owned by the Izaak Walton League and is used solely for maintaining a natural area for public use, for a sanctuary, or for wildlife; or the property or any interest in the property is transferred by the Izaak Walton League and is used solely for maintaining a natural area for public use, or a sanctuary, or for wildlife.

Except as provided in subsection (b) of this section, property is not subject to property tax if the property: is owned by the Maryland Ornithological Society, Inc.; and is used solely for: the maintenance of a natural area for public use; a sanctuary for wildlife; the environmental education of the public; scientific research in ornithology; or the general management of wildlife. In Somerset County the property tax exemption applies only to State property tax.

Property is not subject to property tax if the property: is owned by the Nature Conservancy; and is used: to assist in the preservation of a wild nature area; to establish a nature reserve or other protected area; or generally to promote conservation.

The following agricultural products and commodities are not subject to valuation or to property tax: crops or the produce of any land in the possession of the producer or the agent of the producer; fish in the possession of persons catching, salting, or packing the fish or in the possession of agents until sold; poultry, including hatchery eggs; tobacco stored in the State tobacco warehouse; and regardless of whether they are in their original package, green coffee beans: imported from a foreign country; that are owned by and in possession of the importer; and in which no physical or chemical change has been made by any manufacturing process.

Aircraft as defined in § 5-101 of the Transportation Article are not subject to valuation or to property tax.

Personal property is not subject to valuation or to property tax, if the personal property is owned by: a financial institution as defined in § 8-101(c) of the Tax - General Article other than a savings and loan association as defined in § 7-221.1 of this subtitle; or a federal or State chartered credit union. This exemption does not include any personal property that is leased, loaned, or made available by the institution for the use of a person whose business is not that of the institution.

In this section the following words have the meanings indicated. “Bank or trust company” means: a commercial bank; a savings bank; a trust company; or a company that substantially competes with national banks in the State. “Savings and loan association” means a savings and loan association that: is organized under the laws of the State; is organized under the laws of another state and is admitted to do business in this State; or is organized under the laws of the United States and has an office in this State. Except as provided in subsection (c) of this section, personal property is not subject to valuation or to property tax, if the personal property: is owned by a bank or trust company or a savings and loan association and is used in connection with the processing of deposits or loans of the bank or trust company or savings and loan association; is a computer program, as defined in § 11-225(a) of the Tax - General Article, or computer hardware; and is not used in connection with word processing. The exemption under this section does not apply to any personal property that is leased, loaned, or made available by a bank or trust company or a savings and loan association for the use of a person that is not a bank or trust company or savings and loan association.

Except as provided in § 7-109 of this title and in subsection (b) of this section, the stock in business of a person engaged in a manufacturing or commercial business is not subject to property tax. Except as provided by § 7-108 of this title, the personal property described in subsection (a) of this section is subject to a county property tax on 35% of its assessment in Wicomico County.

The farming implements owned or leased by a farmer are not subject to valuation or property tax.

The livestock of a farmer is not subject to valuation or to property tax.

Except as provided in § 7-109 of this title and in subsection (b) of this section, if used in manufacturing, the following personal property, however operated and whether or not in use, is not subject to property tax: tools; implements; machinery; or manufacturing apparatus or engines. Except as provided by § 7-108 of this title, the personal property listed in subsection (a) of this section is subject to a county property tax on: 100% of its assessment in Garrett County, Somerset County, Wicomico County, and Worcester County; and 75% of its assessment in Allegany County. Property does not qualify for the exemption under this section if the property is used primarily in administration, management, sales, storage, shipping, receiving, or any other nonmanufacturing activity. In order to qualify for the exemption under this section, a person claiming the exemption must apply for and be granted the exemption by the Department.

Except as provided in § 7-109 of this title, raw materials and manufactured products in the possession of a manufacturer are not subject to property tax.

In Prince George’s County, all personal property described in §§ 7–222, 7–225, and 7–226 of this subtitle in the possession of a person engaged in a manufacturing business that holds an alcoholic beverages manufacturer’s license under Title 2, Subtitle 2 of the Alcoholic Beverages and Cannabis Article and has 50 or fewer employees is exempt from the municipal corporation property tax.

Except for personal property used in connection with a business, occupation, or profession, personal property owned by an individual and located at the individual’s place of residence is not subject to valuation or to property tax. Notwithstanding subsection (a) of this section, personal property is not subject to valuation or to property tax if the personal property is: owned by an individual; located at the individual’s place of residence; and used in connection with a family child care home or large family child care home that is registered under Title 9.5, Subtitle 3 of the Education Article. In Anne Arundel County, notwithstanding subsection (a) of this section, personal property is not subject to valuation or to property tax if the personal property is: owned by an individual; located at the individual’s place of residence; and used in connection with a large family child care home that is registered under Title 9.5, Subtitle 3 of the Education Article. Notwithstanding subsection (a) of this section, personal property is not subject to valuation or to property tax if: the personal property is owned by an individual and is used in connection with a business, occupation, or profession that is located at the individual’s principal residence; and the sum total of the personal property, excluding vehicles exempt under § 7–230 of this subtitle, had a total original cost of less than $20,000. If the individual attests to owning a sum total of personal property with an original cost of less than $20,000, the Department may not: collect personal property information from the individual; or require the individual to submit a personal property tax return.

The working tools of mechanics or artisans that are operated exclusively by hand are not subject to valuation or property tax.

A vehicle is not subject to valuation or property tax if the vehicle is: registered in Maryland or another jurisdiction; and of a vehicle classification described in Title 13, Subtitle 9, Part II of the Transportation Article.

As used in this section, “vessel” includes a ship, boat, or watercraft. A vessel is not subject to valuation or to property tax if the vessel is: not more than 100 feet in length; or regularly used in whole or in part in commerce outside the State.

A voting system, as defined in § 1-101 of the Election Law Article, and related equipment, that is leased, rented, or acquired by a board of supervisors of elections is not subject to valuation or to property tax.

Property is not subject to property tax if the property: is owned by: the Boy Scouts of America; the Girl Scouts of the United States of America; or any council, unit, or troop of these organizations; and is actually used exclusively for the purposes of these organizations.

Property is not subject to property tax if the property: is owned by: a national organization of veterans of the United States armed services; or any department, State or local unit, chapter, branch, or post of a national organization of veterans of the United States armed services, including: the 29th Division Association of World War I; or the Society of the Cincinnati of Maryland; and is necessary for and actually used exclusively for the purposes of any of these organizations.

Personal property is not subject to valuation or property tax if the property: is owned by an individual operating a vending facility under the Maryland Vending Program for the Blind; and is used exclusively for that purpose.

In this section, “clean-burning fuel” has the meaning stated in § 9-101 of the Tax - General Article. Except as provided in subsection (c) of this section, refueling equipment or machinery used only to dispense clean-burning fuels into motor vehicles is not subject to property tax. The property tax for refueling equipment or machinery used only to dispense clean-burning fuels into motor vehicles is the applicable tax rate applied to: 20% of the assessed value in taxable year 1998; 40% of the assessed value in taxable year 1999; 60% of the assessed value in taxable year 2000; 80% of the assessed value in taxable year 2001; and 100% of the assessed value in taxable year 2002 and each taxable year thereafter.

Except as provided in subsection (b) of this section, personal property is exempt from property tax if the property is machinery or equipment used to generate: electricity or steam for sale; or hot or chilled water for sale that is used to heat or cool a building. Subject to § 7–514 of this title, and except as provided in subsection (c) of this section, personal property that is machinery or equipment described in subsection (a) of this section is subject to county or municipal corporation property tax on: 75% of its value for the taxable year beginning July 1, 2000; and 50% of its value for the taxable year beginning July 1, 2001 and each subsequent taxable year. In this subsection the following words have the meanings indicated. “Agrivoltaics” means the simultaneous use of areas of land for both solar power generation and agriculture. “Brownfield” means: a former industrial or commercial site identified by federal or State laws or regulations as contaminated or polluted; or a closed municipal or rubble landfill regulated under a refuse disposal permit by the Department of the Environment. “Community solar energy generating system” has the meaning stated in § 7–306.2 of the Public Utilities Article. “Electric company” has the meaning stated in § 1–101 of the Public Utilities Article. This subsection applies through the life cycle of a community solar energy generating system that: is placed in service after June 30, 2022; and has been approved on or before December 31, 2030, by the Public Service Commission under § 7–306.2 of the Public Utilities Article. Personal property is exempt from county or municipal corporation property tax if the property is machinery or equipment that is part of a community solar energy generating system that: has a generating capacity that does not exceed 5 megawatts as measured by the alternating current rating of the system’s inverter; provides at least 50% of the energy it produces to low– or moderate–income customers at a cost that is at least 20% less than the amount charged by the electric company that serves the area where the community solar energy generating system is located; and is used for agrivoltaics; or is installed on a rooftop, brownfield, parking facility canopy, landfill, or clean fill. On or before October 1 each year, the Department shall report to the Senate Budget and Taxation Committee and the House Ways and Means Committee, in accordance with § 2–1257 of the State Government Article, on the number and location of projects that, in the immediately preceding taxable year, have received the exemption under this subsection.

In this section the following words have the meanings indicated. “Computer software” means any program or routine used to cause a computer to perform a specific task or set of tasks. “Computer software” includes: system and application programs; and database storage and management programs. “Embedded software” means computer instructions, known as microcode, that: reside permanently in the internal memory of a computer system or other equipment; and are not intended to be removed without terminating the operation of the computer system or equipment and removing a computer chip, a circuit, or another mechanical device. Except as provided in subsections (c) and (d) of this section, computer software and any documentation related to the computer software are not subject to valuation or property tax. The exemption under this section does not apply to computer software or its related documentation if: the computer software is embedded software; or the computer software is sold from stock in business in a tangible medium ready for use as is. When reporting personal property under Title 11 of this article, a business may not reduce the original cost of the computer hardware by the value of the computer software that is acquired as part of the purchase of computer hardware.

In this section the following words have the meanings indicated. “Certified coal pollution control facility” means property that: is used for the purpose of controlling emissions of pollutants into the air, ground, or waters of the State, resulting from the use of coal at an electrical generation facility, to achieve air quality standards, water quality standards, or effluent standards prescribed under the laws or regulations of the State or the United States; and has been certified by the Department of the Environment as having all applicable federal and State environmental permits. “Coal waste disposal power project” means an electrical generation facility designed, constructed, and installed to reclaim, burn, and dispose of coal wastes in compliance with applicable federal and State air quality, water quality, and effluent standards. Except as otherwise provided in this section, property is subject to a partial exemption from property tax as provided in this section if the property is: a certified coal pollution control facility; or a coal waste disposal power project. Subject to subsection (d) of this section, the partial exemption granted under this section: is equal to 95% of the assessment of the property; and shall apply only to property placed in service as a part of a certified coal pollution control facility or a coal waste disposal power project, for which all necessary permits, including a certificate of public convenience and necessity, are issued on or after January 1, 1997. If a certified coal pollution control facility produces a profitable by-product or if a part of the facility is required for the operation of the business without regard to State and federal air quality, water quality, and effluent requirements, the partial exemption under this section applies only to that portion of the value of the facility attributable to pollution control activity. If a certified coal pollution control facility includes the replacement, repair, or retrofit of equipment that was subject to property tax on or before December 31, 1996, the partial exemption under this section shall be reduced by the replacement value of existing equipment that is replaced. The Department shall adopt regulations to administer the exemption under this section. The regulations adopted under this subsection shall provide for the method for allocation of values required under subsections (d) and (e) of this section.

Personal property is not subject to property tax if the property: is owned by a nonprofit organization that: is qualified as tax exempt under § 501(c)(4) of the Internal Revenue Code; and is engaged primarily in providing a program to render its best efforts to contain, clean up, and otherwise mitigate spills of oil or other substances occurring in United States coastal and tidal waters; and is used for the purposes of the organization.

Subject to subsection (b) of this section, property reserved by the Charles County Planning Commission under § 9–805 of the Land Use Article is not subject to property tax. The Commission shall notify the Charles County Supervisor of Assessments when land is reserved and when land is released from reservation. The notice to the Supervisor shall identify the land that has been reserved or released from reservation. The exemption under this section shall be: effective beginning with the first taxable year after the date on which the Supervisor receives from the Commission notification of the reservation; and terminated beginning with the first taxable year after the date on which the Supervisor receives from the Commission notification of the release of the reservation.

In this section the following words have the meanings indicated. “Residential wind energy equipment” means equipment on residential property that is installed to use wind energy to generate electricity to be used in a residential structure on the property. “Solar energy property” means equipment that is installed to use solar energy or solar thermal electric energy to generate electricity to be used in a structure or supplied to the electric grid, or provide hot water for use in a structure. Except as provided in § 8–240 of this article, the following are not subject to real property tax: residential wind energy equipment; and solar energy property.

In this section, “heavy equipment property” has the meaning stated in § 20–609 of the Local Government Article. Heavy equipment property is not subject to the property tax if the property is subject to the gross receipts tax imposed under § 20–609 of the Local Government Article.

In this section the following words have the meanings indicated. “Associated equipment” has the meaning stated in § 9–1A–01 of the State Government Article. “Table games” has the meaning stated in § 9–1A–01 of the State Government Article. “Video lottery operation license” has the meaning stated in § 9–1A–01 of the State Government Article. “Video lottery terminal” has the meaning stated in § 9–1A–01 of the State Government Article. Video lottery terminals and any associated equipment or software leased by the State Lottery and Gaming Control Commission as provided in § 9–1A–21 of the State Government Article are not subject to property tax. An interest of a person in video lottery terminals and any associated equipment or software owned by the State Lottery and Gaming Control Commission as provided in § 9–1A–21 of the State Government Article is not subject to property tax. Video lottery terminals, any associated equipment and software, and table games owned or leased by a holder of a video lottery operation license are not subject to property tax.

A person’s personal property is not subject to valuation or to property tax if all of the person’s personal property statewide had a total original cost of less than $20,000. If the person attests to owning a sum total of personal property with an original cost of less than $20,000, the Department may not: collect personal property information from the person; or require the person to submit a personal property tax return.

In this section, “Pimlico racing facility site” and “training facility site” have the meanings stated in § 10–601 of the Economic Development Article. An interest of a person in an improvement at the Pimlico racing facility site or training facility site or an interest of a person in the real property of the Pimlico racing facility site or training facility site is not subject to property tax for the duration of: with respect to the Pimlico racing facility site, the long–term agreement described under § 10–646.1(d) of the Economic Development Article; or with respect to the training facility site, the long–term agreement described under § 10–646.1(d) of the Economic Development Article.

Property is not subject to property tax if the property is: owned by the Maryland Farm Bureau, Inc.; and used exclusively for: the agricultural education of the public; aiding and encouraging agriculture in the State; assisting in the collection, analysis, and dissemination of information relating to agriculture; or the maintenance of a natural or recreational area for public use.

In this section, “qualified data center” and “qualified data center personal property” have the meanings stated in § 11–238 of the Tax – General Article. The governing body of a county or municipal corporation may reduce or eliminate, by law, the percentage of the assessment of any qualified data center personal property used in a qualified data center that is subject to the county or municipal corporation property tax under this title. A county or municipal corporation that reduces or eliminates the percentage of assessment of taxable qualified data center personal property under subsection (b) of this section shall submit a copy of the law to the Department. If the Department receives a copy of the law on or before May 1, the change will be effective for the taxable year following the date the law is enacted. If any qualified data center personal property is exempt under subsection (c) of this section from county property tax but is subject to municipal corporation property tax, the Department or the supervisor shall provide the municipal corporation with the assessment of the qualified data center personal property. The Department may adopt regulations to implement this section.

This section applies only to nonresidential solar energy generating systems that are approved by the Public Service Commission under § 7–207 or § 7–207.1 of the Public Utilities Article on or after July 1, 2024. Nonresidential solar energy generating systems that are constructed on the rooftops of buildings or on parking facility canopies are not subject to valuation or to property tax.

This section applies only to real property that includes a parking facility on which a solar energy generating system has been constructed on its canopy if the solar energy generating system has been approved by the Public Service Commission under § 7–207 or § 7–207.1 of the Public Utilities Article on or after July 1, 2024. The governing body of a county or municipal corporation may reduce or eliminate, by law, the percentage of the assessment of any real property that is subject to the county or municipal corporation property tax under this article if the real property includes a parking facility on which a solar energy generating system has been constructed on its canopy. A county or municipal corporation that reduces or eliminates the percentage of assessment of taxable real property under subsection (b) of this section shall submit a copy of the law to the Department. If the Department receives a copy of the law on or before May 1, the change will be effective for the taxable year following the date the law is enacted. If any real property is exempt under subsection (c) of this section from county property tax but is subject to municipal corporation property tax, the Department or the supervisor shall provide the municipal corporation with the assessment of the real property. The Department may adopt regulations to implement this section.

Property is not subject to property tax if the property: is owned by: the City of Hagerstown; or the Hagerstown Multi–Use Sports and Events Facility, Inc.; and is used primarily for public social, recreational, and entertainment purposes. The exemption under subsection (a) of this section shall apply retroactively to taxable years beginning after June 30, 2023. Notwithstanding any other provision of this article: the Department shall grant an exemption for all eligible taxable years to a person that requests a retroactive exemption under this section; and the State, Washington County, and the City of Hagerstown shall pay a refund for any excess property tax paid due to a retroactive exemption granted under this section.