WILLIAM DONALD SCHAEFER, Governor

the Annotated Code of Maryland, now recodified as § 7-202(b) of
the Tax - General Article.

While I recognize that health maintenance organizations are
important factors in providing quality medical services to the
residents of Maryland, I also believe that special exemptions
from property taxes should be sparingly granted. The provisions
of current Maryland law, that an otherwise eligible organization
is entitled to a tax exemption only for property used for a
"charitable or educational purpose," represents sound tax policy
and has served the State well. All other health care providers,
including non-profit hospitals, must meet the same tests as are
applicable to health maintenance organizations.

Further, if special treatment is now given to health maintenance
organizations, we can expect many other non-profit organizations
that do not enjoy tax exemptions under current law to demand
similar treatment. This would not be a desirable use of State
and local tax revenues.

For these reasons, I have vetoed Senate Bill 801.

Sincerely,

William Donald Schaefer

Governor

Senate Bill No. 801

AN ACT concerning

Property Tax - Health Maintenance Organizations

FOR the purpose of exempting from property tax certain nonprofit
property owned by certain health maintenance organizations.

BY repealing and reenacting, with amendments,

BY adding to

Article - Tax - Property
Section 7-202(b)(1) 7-206.1
Annotated Code of Maryland
(1986 Volume and 1987 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Tax - Property

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