Tradepoint Atlantic introduced on November 17, 2025 Baltimore County Bill 88-25 Property Tax Credit for Eligible Port Property for exemption from standard tax rates on the land parcel Sparrows Point Container Terminal is to be contructed. The Open Letter to the Baltimore County Council explores the pros and cons of the bill and who may or may not benefit from it becoming law.
November 22, 2025
Baltimore County Council
400 Washington Avenue, Room 205
Towson, MD 21204 Second Floor
Phone: 410-887-3196
E-mail: countycouncil@baltimorecountymd.gov
Bill 88-25: Property Tax Credit for Eligible Port Property
Councilmen:
As you know Tradepoint TIL Terminals LLC/Sparrows Point Container Terminal have jointly undertaken the development of Sparrows Point Container Terminal. And as you know Tradepoint TIL Terminals LLC/Sparrows Point Container Terminal has introduced, by request through the Baltimore County Executive Office, Bill 88-25 Property Tax Credit for Eligible Port Property, a bill granting both real and personal property tax. I offer you my thoughts on the matter.
Since 2015, the same year Tradepoint Atlantic came to Sparrows Point, I have been representing the interests of the community of Fort Howard regarding development and industrial activities at Tradepoint Atlantic affecting our air, water and quality of life.
Per my request my district Councilman Mr. Crandell included language in Bill 86-15 assuring recreational benefits of land or cash in lieu of tied to Tradepoint retail development. In 2019 my good friend Barbara Brown, MDE Voluntary Cleanup Program Section Head provided me the Environmental Site Assessment of Parcels B-7 and B-25 which germinated the fruition of the Sparrows Point Recreation Center. The recently introduced Bill 88-25 presents opportunity addressing quality of life concerns affecting all 9th District communities.
The purpose of Bill 88-25 is rigging the Sparrows Point Container Port real property tax for 50 years by anchoring the 168 acre port parcel at a set tax of $396,000 year one and each year after adjust that amount for inflation at two or three percent in contrast to the standard county tax rate of $1.1 per $100 with assessments every three years. The Baltimore County tax base of homeowners and businesses will absorb the tax revenue lost with this sweet heart deal.
The Baltimore County fiscal notes state the current assessment of the port 168 acres is $132,000. $132,000 divided by the tax rate of .011 equals $12,000,000 or $71,429 per acre. 8.4-acre MH-IM zoned unimproved wooded lot on Beachwood Road 21222 is selling for $1,200,000 or $141,176 an acre, twice the port acreage price. So why is the port acreage half the value of comparably zoned acreage with in a five-minute drive?
Barring the Tradepoint Atlantic special tax scheme quantitative language, the entire body of fiscal notes is qualitative. Descriptive language like,
“While the bill’s fiscal and economic impacts are challenging to predict, the structure of the real property tax credit and the associated required payment potentially would yield an increase to General Fund revenues at the inception of the 50-year credit period, which would partially offset the foregone tax revenue as the property value increases, ” and “the Administration anticipates that a container terminal of the size this bill is expected to attract will create thousands of new jobs”.
Again, “Challenging to predict”, “potentially”, “partially”, “anticipates”, and “expected” are speculative terms. In total contrast, the 50-year tax formula is numerical, exact, non-fungible iron cladding Tradepoint a guaranteed deal while leaving taxpayers to merely speculate any benefit, if at all, will accrue.
The fiscal notes shill for Tradepoint Atlantic arguing Tradepoint Atlantic is disadvantaged claiming, “other container ports are publically operated wholly exempt from real property taxes.” Where the reality Seagirt, Tradepoint’s most proximal competing container terminal, pays no real property taxes because the property is leased from the state. Lessees/renters do not pay taxes on leased/rented property. The fiscal notes fail mentioning the Federal Highway Administration calculated revenue and benefits accruing to the state over the fifty-year Seagirt lease is $1.5 billion. It reads:
1) 140 million upfront concession payment to MDOT for bridges, highways, and tunnels
2) 100 million for Berth IV development
3) 290 million in lease payments
4) 465 million for payment levied per container moved in excess of 500,000 annually ($15) (Seagirt moved 1.1 million containers 2024)
5) 265 million in maintenance
6) 210 million for additional capital investment with emphasis the port land is leased all the while Seagirt generates thousands of jobs. https://www.fhwa.dot.gov/ipd/project_profiles/md_seagirt_marine_terminal.aspx
Additionally, Tradepoint’s container terminal personal property is completely tax exempt, including the multiple $35,000,000 ship to shore cranes, tractors, trailers, gantries, handlers, forklifts, stackers and all other container port personal property. On top of the %100 personal property tax exemption the accounting cherry on the top is all the personal property is depreciable lowering the income tax liability and swelling their bottom line that much more every year.
Big business boast the ”jobs, jobs, jobs” mantra with echoing politicians drowning public scrutiny of downsides. Our evolving technology affects every aspect of our lives. This is true for the shipping industry. China has been operating an automated 20 million TEU container terminal at Nansha Port in Guangzhou City for over three years now. Undoubtedly, as automation becomes the industry norm economic pressures to remain competitive will dictate labor’s future role in container port operations, including the Sparrows Point terminal. https://youtu.be/_Uyggglxs8s?si=CQ1MQ0dT4zy42JR4
At this point in Bill 88-25’s deliberation, the residents of Baltimore County have been given a policy that sadly adds over 50 years only $43 million to the tax base from a sketched $50 billion revenue stream. The policy analysis provides no credible, substantive, or quantitative indications of what or how the property tax scheme will benefit the commonwealth. One could reasonably argue the policy is one sided benefiting a stratified special interest group of international, state, and local billionaires while the downside is distributed among powerless residents of the 9th District and Baltimore County at large.
To date Tradepoint Atlantic has received $80 million in cash assistance from Baltimore County taxpayers and over $100’s of million in Federal and State assistance not mention the countless environmental variances and other public policy exceptions and exemptions too numerous to list in this address. This assistance contrasts Ports America cash contributions to upgrade roads, bridges, and tunnels reported in the FHWA profile link above.
At minimum, Bill 88-25 must include:
- Specific dollars amount provisions addressing scheduled road maintenance and upgrades statutorily dedicated to 9th district roads.
- Tradepoint Atlantic TEU throughput should fall under a levy similar to Seagirt’s deal with the revenue also lock boxed for 9th district infrastructure, added police, possibly a substation closer to the terminal, sound barriers along heavily trucked streets and an expanded truck camera program.
- And in memory of Kevin Kamenetz, a lottery for every Ravens home game for two skybox tickets care of humanitarian and philanthropist Ravens owner Steve Biscotti with proceeds dedicated to help homeless persons and families in the 9th
Lastly, the fiscal notes paint a picture of doom condemning the Tradepoint development to RORO purgatory if Tradepoint is not afforded Bill 88-25 as written. I differ. The fiscal notes fail spelling out the largest shipping company the world Mediterranean Shipping Company with a market cap of $4.8 billion, the sovereign fund of Singapore GIC aka China, Terminal Investments Ltd, and Redwood Capital billionaires Jim Davis and Ravens (valued $8.5 billion) owner Steve Biscotti are backstopping the project. Bill 88-25’s tax break is loose change in the pockets of these titans of industry. The container terminal is guaranteed with or without Baltimore County Joe Q. Public’s house and business taxes contributing to Tradepoint’s bottom line for the next 50 years. Please, let us think forward, openly, honestly then do what is best for all stakeholders in this private-public partnership, especially those stakeholders in the 9th District of Baltimore County, home of Tradepoint Atlantic.
Thank you for your time entertaining my thoughts,
Scott Pappas
Fort Howard Community Association
APPENDIX
Per Bill 88-25 tax assessment formula is “ THE REQUIRED PAYMENT AMOUNT IN EFFECT FOR THE PRIOR YEAR PLUS 2%” for two through ten and “THE REQUIRED PAYMENT AMOUNT IN EFFECT FOR THE PRIOR YEAR PLUS 3%” years eleven through fifty with the base of “THREE TIMES THE AMOUNT OF THE REAL PROPERTY TAX IMPOSED FOR THE TAX YEAR PRECEDING THE TAX YEAR WHICH CONSTRUCTION COMMENCED.” The current 168-acre tax assessment is $132,000. This information yields the following tax assessment schedule for each of the fifty years of the life span of Bill 88-25.
Year 1= $396,000 Year 2= $403,920 Year 3= $411,998 Year 4=$420,238
Year 5=$428,643 Year 6=$437,215 Year 7=$445,959 Year 8=$454,878
Year 9=$463,975 Year 10=$473,254 Year 11=$487,451 Year 12=$502,074
Year 13=$517,136 Year 14=$532,650 Year 15=$548,629 Year 16=$565,087
Year 17=$582,039 Year 18=$599,500 Year 19=$617,485 Year 20=$636,009
Year 21=$655,089 Year 22=$674,741 Year 23=$694,982 Year 24=$715831
Year 25=$737,305 Year 26=$759,424 Year 27=$782,206 Year 28=$805,672
Year 29=$829,842 Year 30=$854,737 Year 31=$880,379 Year 32=$906,790
Year 33=$ 933,993 Year 34=$962,012 Year 35=$ 990,972 Year 36=$1,020,698
Year 37=$1,051,318 Year 38=$1,082,857 Year 39=$1,115,342 Year 40=$1,148,802
Year 41=$1,183,266 Year 42=$1,218,763 Year 43=$1,255,325 Year 44=$1,292,984
Year 45=$1,331,773 Year 46=$1,371,726 Year 47=$1,412,877 Year 48=$1,455,263
Year 49=$1,498,920 Year 50=$1,543,887 TOTAL TAX REVENUE = $43,517,475
Sameer Sidh Fiscal Note December 1, 2025 First Consideration Bill 88-25 Council District(s) _ All_ Mr. Ertel (By Req.) & Mr. Crandell Administrative Office Property Tax Credits for Eligible Port Property Bill 88-25 establishes a property tax credit for eligible port property in order to promote the potential for development of container terminals in the County. Specifically, the bill creates a real property tax credit for certain marine trade waterfront property, using the authority in § 9-251 of the Tax-Property Article of the Annotated Code of Maryland, and creates a personal property tax credit for certain property located in a foreign trade zone, using the authority in § 9-231 of the TaxProperty Article of the Annotated Code of Maryland. See Exhibit A. State Port Real Property Tax Credit Under § 9-251 of the State Tax-Property Article, the governing body of a county or of a municipal corporation may grant, by law, a tax credit against the county or municipal corporation property tax imposed on marine trade waterfront property. State law defines a “marine trade waterfront property” as real property that: (i) is adjacent to the tidal waters of the State; (ii) is used primarily for an activity or business that requires direct access to, or location in, marine waters due to the nature of the activity or business; and (iii) for the most recent 3-year period, has produced an average annual gross income of at least $1,000. “Marine trade waterfront property” includes marinas, boat ramps, boat hauling and repair facilities, fishing facilities, and any other boating facilities, and land that is adjacent to or under improvements used primarily for an activity or business that requires access to, or location in, marine waters due to the nature of the activity or business. Also, the governing body of a county or of a municipal corporation may provide, by law, for the amount and duration of the tax
credit; additional eligibility criteria for the tax credit; regulations and procedures for the application and uniform processing of requests for the tax credit; and any other provision necessary to carry out the credit. Page 23 Bill 88-25 December 1, 2025 County-Eligible Port Real Property Tax Credit Bill 88-25 establishes a property tax credit against County real property tax imposed on eligible port property. In order to qualify for the tax credit, the owner of an eligible port property must submit an application under oath to the Director of Budget and Finance. An “eligible port property” means marine trade waterfront property, as defined in § 9-251 of the State Tax-Property Article. However, the eligible port property must be used primarily for container operations, which is defined as the loading and unloading of intermodal containers to and from commercial marine vessels, and the related movement, storage, and transloading of such intermodal containers. Within 30 days after receiving an application, the Director must grant or deny the application, provide notice of the decision to the Applicant, and, in the case of a denial, state in such notice the reasons for the denial. If the Director does not grant or deny the tax credit within 30 days after receiving the application, the application is deemed to be approved. The property tax credit begins in the tax year in which the eligible port property was determined to be operational, as set forth in a written agreement and notice, as described below, and continues for a total of 50 years. According to the bill as introduced, for each tax year of the tax credit, the taxpayer must pay County property tax on the eligible port property in an amount equal to the required payment amount and receive a tax credit of 100% against all County property tax imposed on the eligible port property in excess of the required payment amount. The required payment amount for the first tax year of the tax credit is three times the amount of the real property tax imposed on the eligible port property for the tax year immediately preceding the tax year in which construction of facilities for container operations at the eligible port property commenced. For each of the second through 10th tax years of the 50-year tax credit period, the required payment amount is the amount in effect for the prior tax year plus 2%. For each of the 11th through 50th tax years of the tax credit, the required payment amount is the amount in effect for the prior tax year plus 3%. After the application is approved or deemed to be approved, but before the credit may begin, the taxpayer and the County must enter into a written agreement. The agreement must require the County and taxpayer to execute a subsequent written notice confirming: the date the eligible port property was determined to be in use for container operations; the tax year in which the 50-year credit will commence; and the tax year in which the 50-year period will expire. Also, the agreement must confirm: Page 24 Bill 88-25 December 1, 2025 • the taxpayer’s agreement to make the required payment in consideration of the County granting the eligible port property tax credits; • the requirements for the eligible port property to be considered operational and that the tax credit will commence in the immediately subsequent tax year; • that the eligible port property must be in substantially continuous use for container operations for the duration of the 50-year tax credit period and establishing an annual inspection process to validate such continuous operation; and • that the taxpayer’s right to receive such tax credits, for the entire 50-year tax credit period, constitutes a property right of the taxpayer and is vested when the eligible port property is used for container operations, as specified in the agreement. Last, the property tax credit runs with the property, and a change in ownership does not result in a lapse of the tax credit, so long as the eligible port property is used for container operations. State Port Personal Property Tax Credit Under § 9-231 of the State Tax-Property Article the governing body of a county or municipal corporation may grant, by law, a property tax credit against the county or municipal property tax imposed on personal property, other than operating personal property of a public utility, if the personal property is located in a foreign trade zone that is within that county or municipal corporation. A “foreign trade zone” means the entire area designated as foreign-trade zone no. 74 under federal law. County-Eligible Port Personal Property Tax Credit Bill 88-25 establishes a property tax credit of 100% against all County personal property tax imposed on container handling equipment used in connection with container operations at eligible port property in the foreign trade zone for which an eligible port real property tax credit has been granted. “Container handling equipment” means the specialized machinery necessary for the safe, secure, and efficient movement of shipping containers at a port, including: • ship to shore cranes to load and unload containers from ships; • terminal tractors and associated trailers to move containers within the port terminal; • rail mounted gantry cranes to load and unload containers from railcars within the terminal intermodal yard; • container handlers; • forklifts having a load capacity greater than 5 tons; • reach stackers and other specialized vehicles that lift, lower, and stack containers; and Page 25 Bill 88-25 December 1, 2025 • straddle carriers and rubber tire gantries that can straddle a container stack and lift containers from the ground or vehicles. A taxpayer claiming a port personal tax credit must provide to the Director, upon request, an itemized list of the container handling equipment for which the taxpayer claimed the credit. The Administration has advised that Bill 88-25 is intended to serve as an economic development incentive and is expected to attract significant investment to Baltimore County. While the bill’s fiscal and economic impacts are challenging to predict, the structure of the real property tax credit and the associated required payment (alongside an approved application to and separate agreement with the County) potentially would yield an increase to General Fund revenues at the inception of the 50-year credit period, which would partially offset the foregone tax revenue as the property value increases. Based on the anticipated ranges provided by the Administration, the estimated fiscal impacts of Bill 88-25 include: • a stream of revenues from required payments, which could range from approximately $400,000 to $500,000 in the first year (based on an assumed initial assessed value of $12 million to $15 million) and increase each year as stipulated in Bill 88-25; and • a stream of foregone property tax revenues, with estimated foregone property tax revenue which would total approximately $4.8 million, in nominal terms, in the first year of full buildout, assuming that real and personal property are each valued at $125 million. This amount would increase over time as the value of the property increases, and it would be partially offset by an anticipated stream of increased property tax revenues from surrounding parcels. The Administration noted that in the absence of this incentive, there would be not be any revenue increase or foregone revenue. Further, the Administration anticipates that a container terminal of the size this bill is expected to attract will create thousands of new jobs, encourage vertical development, spur higher property values on neighboring properties, and ultimately generate an annual economic impact exceeding $1 billion. With the affirmative vote of five members of the County Council, Bill 88-25 will take effect December 29, 2025. Page 26 Exhibit A Bill 88-25 Property Tax Credits for Port Property: Executive Summary The Administration is requesting County Council support for legislation to establish property tax incentives for eligible port property, with the goal of supporting the development of privately operated container terminals in Baltimore County. Doing so would likely draw a billion-dollar investment, generate a significant economic impact across the region, create thousands of new jobs, and position Baltimore County as a regional and national leader in global port commerce. A container terminal would boost Baltimore County’s standing as a regional leader in logistics and commerce, elevating one of the County’s most critical industries. Industrial properties with port access can garner interest in shipping terminals, including container terminals and Roll On/Roll Off (RORO) terminals. Container Terminals require significant capital improvements, but attract a greater diversity of goods and jobs. As container terminals are exclusively publicly operated nationally and are wholly exempt from real and personal property taxes, a privately operated container terminal would require significant tax credits to be financially viable and competitive against publicly operated container terminals. A new container terminal would likely generate over $1 billion of capital investment in Baltimore County, create approximately 7,000 jobs and have a net positive tax revenue impact due to the ability to support vertical development on adjacent parcels not receiving the tax credit. Absent appropriate incentives, it is more likely that a RORO terminal would be established, which would have a lesser economic impact. RORO terminals require lower startup costs but a lower overall economic ceiling. Overview of Tax Credits The Administration’s proposal lays out real property tax credits to support capital improvements, as well as personal property tax credits to support the acquisition of key equipment necessary to operate a container terminal. Real Property Tax Credit Under the proposed real property tax credit, the applicant would pay three times the amount of the property tax bill from the tax year before the improvements are made, with a two percent escalator for the first ten years. Following that ten-year period, the tax would increase annually with a three percent escalator for the next 40 years. This methodology was developed in order to attract developers with significant capital to absorb higher hits in the early years of the tax credit, guaranteeing the County an immediate increase in tax revenue while supporting over a billion dollar private economic investment. Page 27 By tripling the tax bill in year one of the program, the County grows its revenue in the short term, while partially offsetting deferred revenue losses in the out years. It should be noted that that any “foregone” revenue would also be unrealized revenue in the base scenario, with no incentives. Personal Property Tax Credit The personal property tax credit of 100 percent would apply to industrial equipment and machinery, including ship to shore cranes to load and unload containers from ships, terminal tractors and trailers, rail mounted cranes to load and unload containers from railcars within the terminal intermodal yard, container handlers, and reach stackers. An estimate of foregone revenue from the personal property tax credit is difficult to estimate. Economic and Fiscal Impact County revenues rise significantly in early years of the tax credit. As operations begin, the container terminal generates new economic activity, promotes vertical development, and expands the tax base, generating additional tax revenue. Assuming a 150-acre property is assessed at a value of $12 million to $15 million, the annual property tax would be $132,000 to $165,000. Tripled, the payment would be roughly $400,000 to $500,000, which would increase two percent annually for ten years, before rising three percent annually for the remaining 40 years. Under this structure, the property would pay more than $40 million over 50 years. In the same time period, a container terminal would generate tens of billions in economic impact. Neighboring properties would likely see vertical development, higher-intensity uses, and higher property values, creating additional jobs and revenue for the County. A container terminal of this size likely provides an annual economic impact exceeding $1 billion, generating more than $40 billion over 50 years. Prepared by: Administration Page 28 Kevin Reed Fiscal Note De
The Council will have a work session on Tuesday December 9, 2025 at 4 o’clock.The Work Session can joined by the public in-person in the County Council Chambers or online here (Webinar Password – VWs2343Jjw5) or by phone at +1-415-655-0001 US Toll – Event number (access code): 2316 542 9765 Webinar Password: 89723435 The public is invited to provide testimony at the Work Session. Anyone wishing to testify shall register in advance using our online Speaker Registration Form (Registration Form will be available on the day of the Work Session). Speaker registration will commence on the date of the Work Session at 8:00 a.m. and registration will close at 2:00 p.m. In order to testify, a person must either appear in person or join the WebEx event with an internet-capable device (i.e., smartphone, tablet, laptop or desktop computer). Each person testifying at the Work Session will be given three (3) minutes to speak, unless otherwise stated by the Chair. Persons who do not wish to speak at the Work Session but want to convey their thoughts are encouraged to provide written testimony or comment by email or traditional mail. Please send all emails to countycouncil@baltimorecountymd.gov.
