HB 127 requires Baltimore County to create a property tax credit for county residents who are public safety officers (like police and firefighters) or Baltimore County public school employees. The credit would reduce the county property tax on their primary residence, with the county government determining the exact amount, duration, and application process. This bill directly affects those specific public employees by lowering their local tax burden, but the county must establish the program through its own local law. The credit would apply to taxable years beginning after June 30, 2026.
HB 359 amends Maryland's property tax credit for urban agricultural property, clarifying eligibility and adding procedural requirements for jurisdictions granting the credit. It defines "urban agricultural property" as land between 1/8 and 5 acres in priority areas (not assessed as agricultural) used for activities like crop production, beekeeping, environmental mitigation, community programs, or agritourism. The bill requires jurisdictions to evaluate the credit's effectiveness after 3 years and, if terminating it, must provide the public with at least one year's notice and an opportunity to comment or appeal. This directly affects Baltimore City, counties, and municipalities that administer the tax credit for qualifying urban farms and agricultural operations.
HB 294 modifies Maryland's personal property tax law to simplify exemptions for small businesses. It repeals restrictions that previously prevented the State Department of Assessments and Taxation from collecting information or requiring tax returns from businesses owning business personal property valued under $20,000 total (excluding vehicles). This change directly affects small business owners with low-value equipment, removing administrative burdens by eliminating the need to submit tax returns or provide property details if they qualify for the exemption. The law takes effect June 1, 2026, for taxable years beginning after June 30, 2026.
SB 58 allows Baltimore City or Maryland counties to offer property tax credits to owners who convert former gas stations into retail, residential, or mixed-use properties. The credit is specifically intended to help cover costs for removing old underground gas tanks and cleaning up soil or water contamination from those tanks. Local governments can set the credit amount and duration, and the state will reimburse them 50% of the lost property tax revenue. This directly affects property owners and developers planning to redevelop former gas station sites into other commercial or housing uses.
SB 235 requires Baltimore County's governing body to establish property tax credits for homes owned by public safety officers and Baltimore County public school employees. The bill mandates that the county create specific rules for the credit amount, duration, eligibility, and application process through local law. It directly affects these two groups of public employees by potentially reducing their county property tax burden. The law takes effect June 1, 2026, applying to taxable years beginning after June 30, 2026.
HB 560 repeals two tax exemptions for data centers in Maryland: one that exempted sales and use tax on qualifying equipment purchases and another that allowed local governments to reduce property tax on data center equipment. This bill directly affects data centers previously eligible for these breaks, requiring them to pay standard sales and use tax on equipment and full property tax on their assets. The repeal removes Sections 11-239 (Tax-General) and 7-248 (Tax-Property) from Maryland law, eliminating the eligibility requirements and certification process for these exemptions. As a result, data centers will no longer qualify for these specific tax benefits under current law.
HB 685 allows Anne Arundel County or its municipalities to create a property tax credit for county employees who own homes within the county. The bill authorizes local governments to set eligibility rules, credit amounts, and application procedures through their own ordinances. It directly affects Anne Arundel County employees who own qualifying dwellings, reducing their local property tax burden. The credit would apply to tax years beginning after June 30, 2026, with implementation starting June 1, 2026. The bill establishes a framework but does not specify exact credit details, leaving those to local decision-making.
HB 652 creates a property tax credit for first-time homebuyers in Maryland. It defines a "first-time homebuyer" as a Maryland resident who has never owned a dwelling in any state. The bill changes how the taxable assessment is calculated for this credit: for the first year a first-time homebuyer owns a home, the credit uses the previous owner's assessment (adjusted for revaluation) instead of the new owner's current assessment. This directly affects eligible first-time homebuyers by lowering their initial property tax burden. The change applies to all taxable years beginning after June 30, 2026.
SB 122 modifies how Maryland counties and Baltimore City reimburse the State Department of Assessments and Taxation for administrative costs. It requires these local jurisdictions to pay 90% of costs for real property valuation, business personal property valuation, and related IT services (instead of 50% for 2012-2013 as previously noted), with payments calculated based on property accounts or business property value. Reimbursements must be paid quarterly (50% by October 1, 25% each January 1 and April 1), and late payments may trigger withholding of local income tax distributions. The changes take effect June 1, 2026.
SB 344 extends the deadline for community solar energy systems to receive Public Service Commission approval, allowing land used by these systems to qualify for agricultural property tax assessment. Specifically, it changes the requirement from approval "on or before December 31, 2025" to "on or before December 31, 2030" for systems placed in service after June 30, 2022. This directly affects community solar developers and landowners seeking agricultural tax treatment for solar installations. The bill amends Maryland's property tax code to maintain eligibility for agricultural assessment without altering the core criteria for qualifying land use. The change takes effect June 1, 2026, applying to all taxable years beginning after June 30, 2026.
