Budget & Taxes (Property Tax)

HB 734 extends the deadline for community solar energy systems to qualify for agricultural property tax assessment from 2025 to December 31, 2030. It applies to systems placed in service after June 30, 2022, and approved by the Public Service Commission by the new deadline. The bill ensures land used for qualifying community solar projects is assessed as actively farmed agricultural land, allowing property owners to receive lower tax rates. This directly affects landowners operating community solar systems that meet these criteria.

HB 112 extends the deadline for community solar energy systems to receive Public Service Commission approval from December 31, 2025, to December 31, 2030, to qualify for agricultural property tax assessment. It specifically clarifies that land used for "agrivoltaics" (solar systems combined with farming) must be assessed as actively farmland under Maryland’s agricultural tax program. This change directly affects community solar developers and landowners with qualifying solar installations seeking lower agricultural tax rates. The bill takes effect June 1, 2026, applying to taxable years beginning after June 30, 2026.

HB 90 allows Maryland counties and Baltimore City to create a special property tax rate for commercial and industrial properties - including mixed-use buildings - to fund transportation projects or school budgets. It requires counties to automatically exempt the residential portion of mixed-use properties from this special tax using public records, without requiring owner applications. The special rate must be in addition to the general tax rate, cannot exceed 12.5 cents per $100 assessed value total, and cannot apply to residential parts of qualifying buildings. This directly affects commercial/industrial property owners, particularly those with mixed-use properties, by modifying how their taxes are calculated for specific public funding purposes.

SB 194 amends Maryland tax code to extend existing income and property tax benefits to members and veterans of the Space Force. It updates definitions in tax laws to explicitly include "space service" alongside military, naval, and air service, making Space Force members, veterans, and their surviving spouses eligible for current programs. Key provisions include revising eligibility for job creation tax credits (under Section 6-301(e)) and property tax exemptions for disabled veterans (Sections 7-208 and 9-265). These changes ensure Space Force personnel qualify for the same tax incentives previously available only to traditional military branches. The bill directly affects Space Force members, veterans, and their families by expanding access to existing state tax benefits.

SB 224 allows counties and Baltimore City to create a special property tax rate for commercial and industrial properties, in addition to the general tax rate, to fund transportation projects or school budgets. The special rate cannot exceed 12.5 cents per $100 of assessed value and must automatically exempt the residential portion of mixed-use buildings from this tax. It also permits counties to grant tax credits to small businesses (under 20 employees) owning qualifying commercial property. This bill directly affects commercial/industrial property owners and mixed-use building residents, while ensuring residential portions remain tax-exempt under the special rate.