Prince George's County, Maryland, USA
Interior Nat Harbor

Municipal Corporations Leased Property

The Municipal Corporation Leased Property Tax Credit provides a property tax credit for qualifying commercial or industrial properties leased and occupied by a municipal corporation within Prince George's County.

The credit helps reduce the County property tax burden on leased properties when the municipal tenant is contractually responsible for paying the real property taxes, allowing municipalities to realize savings similar to those available for municipally owned property.

Credit Amount

The credit applies to the County portion of the real property tax bill only.

The credit cannot exceed the amount of County property taxes that the municipal corporation is contractually required to pay under the lease agreement.

Eligibility Requirements

To qualify for the Municipal Corporation Leased Property Tax Credit, all of the following requirements must be met:

  • The property must be leased, occupied, and used exclusively by a municipal corporation located within Prince George's County.
  • The lease agreement must clearly state that the municipal corporation is responsible for paying the real property taxes.
  • The property must be zoned for Commercial or Industrial use.
  • A completed notarized application must be submitted to the Office of Finance by April 1 preceding the fiscal year for which the credit is requested.

Eligible Properties

The credit applies only to:

  • Commercial or industrial real property located within Prince George's County.
  • Property leased exclusively to a qualifying municipal corporation.
  • Property for which the municipal corporation is contractually responsible for paying the County real property taxes.

Restrictions

A property is not eligible for the credit if:

  • The municipal corporation subleases the property to a third party.
  • The property is used for commercial or profit-making activities.
  • The municipal corporation vacates the leased premises.

How the Credit Is Applied

The Office of Finance reviews the lease agreement to verify the municipal corporation's responsibility for paying County real property taxes.

If approved:

  • The credit is applied against the County portion of the real property tax bill.
  • The credit amount cannot exceed the County tax liability assigned to the municipal corporation under the lease.
  • The property owner (lessor) is required to pass the full tax savings to the municipal tenant as provided by County law.

Important Information

  • The credit applies only to County real property taxes.
  • The credit does not reduce:
    • Maryland State property taxes;
    • Special district taxes; or
    • Municipal property taxes.
  • The application must be submitted annually to remain eligible.

How to Apply

Applications must be submitted to:

Prince George's County Office of Finance
Treasury Division

Applications must include a copy of the executed lease.

Application Deadline: April 1

Questions?

For additional information, please email the Office of Finance, Treasury Division at prop_tax_credits@co.pg.md.us

Authority

  • County Bill CB-2-1996
  • Prince George's County Code, Section 10-235.02

Apply for Leased Property Tax Credit - Municipal Corporation (PDF)

Apply for Leased Property Tax Credit - Municipal Corporation (PDF) - Español