2124                             Joint Resolutions

No. 63
(Senate Joint Resolution 11)

Senate Joint Resolution requesting the Legislative Council and its
Committee on Taxation and Fiscal Matters to undertake an ex-
tensive study and review of property tax exemptions AND
CREDITS.

The members of the General Assembly are concerned over the
increasing number of exemptions to property taxation. Particular
concern has been expressed over those exemptions that are granted
in an organization's name rather than by use of the property.

The Department of Assessments and Taxation has estimated that
tax exemptions for real property amount to $3,682,683,000 as of
June 30, 1969. Of this amount eighty percent is for government-
owned property.

In reviewing the information from the Department of Assessments
and Taxation the Committee on Taxation and Fiscal Matters of the
Legislative Council suggested that an extensive study is needed to
develop general statutory language for these exemptions to replace
the exemptions now described by organization name and to deter-
mine if any harm will result from changing the wording of the
exemptions.

Although the validity of any specific exemption is not being ques-
tioned the increasing costs of government necessitate close scrutiny
of any exemptions that reduce revenues. Property that is tax exempt
requires governmental services in a manner similar to taxable prop-
erty and equitable taxation demands no special treatment of any
group of taxpayers without justification SIMILAR CONCERNS
SUGGEST THE NEED FOR SCRUTINY AND EVALUATION OF
THE STATE'S POLICY AND PRACTICES WITH RESPECT TO
TAX CREDITS.

The Committee on Taxation and Fiscal Matters has directed the
Department of Fiscal Services in conjunction with the Department
of Assessments and Taxation and the Attorney General's office to
thoroughly review and analyze the exemptions from property taxa-
tion contained in Section 9 of Article 81 of the Maryland Code and to
report the findings and recommendations to the Committee on Taxa-
tion and Fiscal Matters by May 1, 1970, so that the Committee
may undertake the extensive hearings and discussion required to
bring about an effective revision of this section; now, therefore be it

Resolved by the General Assembly of Maryland, That the Legis-
lative Council is requested to have its Committee on Taxation and
Fiscal Matters study, analyze and evaluate existing property tax
exemptions AND CREDITS in the state; and be it further

Resolved, That the Committee on Taxation and Fiscal Matters
and the Legislative Council are requested to report the results of the
study, together with any recommendations which may be appro-
priate, to the General Assembly of 1971; and be it further

Resolved, That copies of this Resolution are sent to the Directors
of the Departments of Fiscal Services and Assessments and Taxa-
tion, the Attorney General of Maryland, and the Secretary of the
Legislative Council.

Approved April 28, 1970.