On March 11, 2025, the Maryland Legislature introduced Senate Bill 698, a significant piece of legislation aimed at stimulating economic growth in Washington County. The bill proposes a sales and use tax exemption for construction materials and warehousing equipment purchased for use in the Mount Aetna Technology Park, a designated target redevelopment area.

The primary goal of Senate Bill 698 is to encourage investment in the Mount Aetna Technology Park, which is strategically located within an office, research, and industry zoning district. By exempting sales tax on construction materials and warehousing equipment, the bill seeks to lower the financial barriers for businesses looking to develop or renovate properties in this area. This initiative is expected to attract new companies, create jobs, and enhance the local economy.

Key provisions of the bill stipulate that the tax exemption applies only to purchases made specifically for the target redevelopment area, and buyers must provide proof of eligibility to vendors. This targeted approach aims to ensure that the benefits of the exemption directly support the revitalization of the Mount Aetna Technology Park.

While the bill has garnered support from local business leaders and economic development advocates, it has also sparked debates regarding its long-term implications. Critics express concerns about the potential loss of tax revenue for the state and whether the benefits will outweigh the costs. Proponents argue that the investment in infrastructure and job creation will ultimately lead to increased economic activity that could offset any initial revenue losses.

Senate Bill 698 is set to take effect on July 1, 2025, and will remain in force for ten years, expiring on June 30, 2035, unless further action is taken by the General Assembly. As the bill progresses through the legislative process, its impact on the community and the broader economic landscape of Maryland will be closely monitored. The outcome could set a precedent for similar initiatives aimed at revitalizing underdeveloped areas across the state.