Panel narrows HB 161 tax credit for redeveloping former gas stations; excludes liquor and vape/smoke shops

Delegate Kent Roberson convened consideration of House Bill 161, a county-option property tax credit intended to encourage redevelopment of former retail service stations.

Stan Ward, legislative staff, summarized a reprint amendment: the tax credit would not be available for a property unless any underground storage tanks on the site were permanently closed in accordance with Maryland Department of the Environment regulations. "The amendment just says that the property tax credit would not be available for a property unless any underground storage tanks... were permanently closed in accordance with regulations of the Maryland Department of the Environment," Ward said.

Members debated the scope of the credit. Delegate Jeffrey Long said the credit should not be used to offset work that was already legally required: "This credit would not be available for... things that are already legally required to be done to shut down a gas station," Ward added, explaining the measure targets additional cleanup costs necessary for redevelopment.

Delegate Hartman warned the bill might be "picking winners and losers" by excluding some retail uses, noting discount stores can offer fresh food in communities with few grocery options. Sponsor Delegate Ruth said the intent is to promote businesses the community wants and to make conversions beneficial to constituents. Several delegates urged local control, saying individual counties should be able to refine eligibility and add or remove exclusions based on local needs.

The subcommittee considered two competing amendments. Members voted to add liquor stores and vape/smoke shops to the list of excluded retail uses; the chair recorded four in favor and two opposed and the motion carried. A separate motion by Delegate Hartman to remove the statutory restriction on discount stores failed. After those amendments and discussion, Delegate Feldmark moved HB 161 favorable as amended; the subcommittee recorded four votes in favor and two opposed and moved the bill forward.

Staff and delegates emphasized the credit is intended to help cover remediation costs required for a higher standard of reuse (for example residential or restaurant uses) beyond the minimum closure steps that allow a site to remain vacant. Local governments may adopt additional eligibility criteria if they choose.