WILLIAM DONALD SCHAEFER, Governor                            Ch. 680

Preamble

WHEREAS, The State Department of Assessments and Taxation has assessed the
property of telecommunications companies providing interstate long distance
telecommunications service as public utility property, thereby taxing the real estate
component of such property at 100% of value when the property of commercial and
industrial taxpayers is taxed at 40% of value; and

WHEREAS, Other states are taxing the real property of interstate long distance
telecommunications companies as commercial property and the Department's taxing
practice may adversely affect Maryland's competitive position in attracting the
construction of interexchange facilities in Maryland, which create long term employment
for Maryland residents; and

WHEREAS, The Legislature desires to amend the property tax law to tax the real
property of interstate long distance telecommunications companies at 40% of value so
long as the Department's practice of assessing interexchange telecommunications
companies as public utilities may continue; and

WHEREAS, This legislation is being made effective in tax year 1905 to allow the
local taxing jurisdictions to adjust to the fiscal impact of this measure It is the intent of
the General Assembly to give the Mayor and City Council of Baltimore City or the
governing body of a county or municipal corporation the authority to grant a tax credit of
up to 60% of the property tax imposed on the real property of interstate long distance
telecommunications companies; now, therefore,

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

Article—Tax—Property

8-101.

(b) Real property is a class of property and is divided into the following
subclasses:

(1) land that is actively devoted to farm or agricultural use, assessed under §
8-209 of this title;

(2) marshland, assessed under § 8-210 of this title;

(3) woodland, assessed under § 8-211 of this title;

(4) land of a country club, assessed under §§ 8-212 through 8-217 of this
title;

(5) land that is used for a planned development, assessed under §§ 8-220
through 8-225 of this title;

(6) rezoned real property that is used for residential purposes, assessed
under §§ 8-226 through 8-228 of this title;

(7) operating real property of a railroad;

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