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

Religious Organizations Leased Property

The Religious Organization Leased Property Tax Credit provides a property tax credit for qualifying commercial properties leased and occupied by eligible religious groups or organizations.

The credit helps reduce the County property tax burden on leased property when a qualifying religious organization is contractually responsible for paying the property taxes and the property is used exclusively for eligible nonprofit purposes.

Note:  If your organization owns a property that meets the same qualifications, you may be eligible for an exemption. Please go to the Maryland Dept. of Assessments and Taxation (SDAT) website for information: Departmental Forms & Applications 

Credit Amount

The credit applies to the County portion of the real property tax bill for the qualifying leased portion of the property.

The property owner is required to pass the full value of the tax credit to the religious organization by reducing the amount of property taxes the tenant is contractually obligated to pay.

Eligibility Requirements

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

  • The religious group or organization must qualify for a property tax exemption under Section 7-204 of the Maryland Tax-Property Article.
  • The organization must have verifiable tax-exempt nonprofit status from the Internal Revenue Service (IRS).
  • The leased portion of the property must be used exclusively for:
    • Public religious worship;
    • Educational purposes; or
    • Office space necessary to support public religious worship or educational purposes.
  • The property may not be leased, occupied, or used for profit-making purposes.
  • The religious organization must be contractually responsible for paying the property taxes.
  • The property owner must agree, through the lease, to reduce the tenant's tax obligation by the amount of the tax credit.
  • The property must be located within a commercial zoning district.

Application Requirements

Applications must:

  • Be submitted to the Supervisor of Assessments and Taxation for Prince George's County.
  • Be filed no later than September 1 of the tax year for which the credit is requested.
  • Be signed under oath by both the property owner and the religious organization.

Required Documentation

Applications must include:

  • A copy of the fully executed lease agreement between the property owner and the religious organization.
  • Any additional information requested to determine eligibility.

Property Owner Responsibilities

The property owner must:

  • Reduce the tenant's property tax obligation by the amount of the approved tax credit.
  • Notify the Supervisor of Assessments and Taxation within 30 days if:
    • The lease is terminated; or
    • The religious organization vacates the property.

Important Information

  • The credit applies only to the portion of the property leased to and occupied by the qualifying religious organization.
  • Only property used exclusively for eligible nonprofit religious or educational purposes qualifies.
  • Commercial or profit-making uses of the property are not eligible for this tax credit.

How to Apply

Applications must be submitted to:

Prince George's County Office of Finance
Treasury Division

Application Deadline: September 1

Questions?

For additional information, please contact the Office of Finance, Treasury Division (301) 952-4030 or the Supervisor of Assessments and Taxation for Prince George's County (301) 952-2500.

Authority

  • County Bill CB-24-1994
  • Section 7-204, Tax-Property Article, Annotated Code of Maryland

Apply for Leased Property Tax Credit - Religious Organization (PDF)

Apply for Leased Property Tax Credit - Religious Organization (PDF) - Español