HB 161 Maryland House of Delegates · 2026 Regular Session

Property Tax Credit - Retail Service Station Conversions

HB 161 creates a property tax credit for property owners who convert former gas stations (retail service stations) to new uses like retail stores, homes, or mixed residential-retail spaces. Local governments (counties or cities) can grant this credit to offset property taxes, and the state will reimburse them 50% of the lost tax revenue. The credit is specifically intended to help cover costs for removing old underground gas tanks and cleaning up contamination. This applies to properties converted after June 30, 2026, and affects property owners making such conversions in Maryland jurisdictions.

Bill status signed all 5 stages cleared

Introduction

Sep 2025

Committee Review

Apr 2026

House of Delegates Passage

Apr 2026

Senate Passage

Apr 2026

Signed into Law

May 2026

Introduced Sep 10, 2025 Signed May 26, 2026

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What changed between versions

First - Property Tax Credit - Retail Service Station Conversions → Third - Property Tax Credit - Retail Service Station Conversions · 4 edits

MODERATE

The bill was amended to expand eligibility for property tax credits by adding new categories of retail businesses, including licensed cigarette retailers, tobacco vendors, vape shops, and alcohol license holders. Additionally, a new requirement mandates that underground storage tanks must be permanently closed before a tax credit can be granted, and the state's funding contribution to local governments granting these credits is now explicitly defined as 50% of the foregone tax revenue.

Scope change

The bill's scope was expanded to include a wider variety of retail service station conversions beyond just discount stores and self-service storage facilities.

ELIGIBILITY

New eligible uses for property tax credits were added to include licensed cigarette retailers, tobacco vendors, vape shops, and holders of Class A alcohol licenses.

REQUIREMENT

A new condition requires that underground storage tanks on the property must be permanently closed in accordance with state regulations before a tax credit can be granted.

DEFINITION

The definition of 'retail use' was updated to explicitly exclude the new categories of tobacco and alcohol retailers added to the eligible list.

FISCAL

The state's financial contribution to counties and municipalities granting the credit is clarified as an amount equal to 50% of the property tax revenue that would have been collected if the credit had not been granted.

Floor votes · Senate Mar 18, 2026 · House of Delegates Feb 27, 2026

How they voted

48–0

Passed · 1 other

Total votes 49

Mar 18, 2026

D Democratic36

36 Yea

100% Yea

R Republican13

12 Yea 1

92% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 26, 2026

Signed into law

Approved by the Governor - Chapter 643

executive

Apr 8, 2026

Lower · Passed

Returned Passed

lower

Apr 7, 2026

Upper · Passed

Third Reading Passed

upper

Apr 3, 2026

Upper · Passed

Favorable Adopted

upper

Apr 3, 2026

Upper · Passed

Favorable Report by Budget and Taxation

upper

Mar 18, 2026

Senate · Passed

Senate Vote: pass (48-0-1)

senate

Mar 12, 2026

Committee

Referred Budget and Taxation

upper

Mar 11, 2026

Lower · Passed

Third Reading Passed

lower

Mar 10, 2026

Lower · Passed

Favorable with Amendments {

lower

Mar 9, 2026

Lower · Passed

Favorable with Amendments Report by Ways and Means

lower

Feb 27, 2026

House Of Delegates · Passed

House of Delegates Vote: pass (130-7-5)

house of delegates

Jan 14, 2026

Committee

First Reading Ways and Means

lower

Sep 10, 2025

Introduced

Pre-filed

lower

17 primary · 0 co-sponsors