On February 18, Legislative Director Kevin Kinnally testified before the Budget and Taxation Committee in support of SB 427 – Property Taxes – Authority of Counties to Establish a Subclass and Set a Special Rate for Personal Property of Data Centers. 

This bill authorizes county governments and Baltimore City to create a separate personal property subclass for qualified data center personal property and to apply a special tax rate.

As data center development expands across Maryland, counties are increasingly responsible for addressing the infrastructure, public safety, and long-term service demands these projects generate. SB 427 provides a practical, locally driven option that allows jurisdictions to align tax policy with real-world impacts, ensuring communities retain the flexibility to respond based on their unique conditions and priorities.

From MACo Testimony:

Counties need the flexibility to evaluate these projects holistically and decide whether and how local tax policy should reflect local costs and responsibilities. This bill allows counties to make those decisions locally, rather than forcing a one-size-fits-all approach statewide.

More on MACo’s Advocacy:

• Follow MACo’s advocacy efforts during the 2026 legislative session on MACo’s Legislative Tracking Database
• Learn more about MACo’s 2026 Legislative Initiatives
• Read more General Assembly News on MACo’s Conduit Street blog