Property Tax - Homestead Property Tax Credit - First-Time Homebuyer

HB 1214 creates a property tax credit for first-time homebuyers in Maryland by changing how the taxable assessment is calculated for their first year of ownership. It defines a "first-time homebuyer" as someone who has never owned property in any state, and specifies that for their first taxable year, the assessment used to calculate the credit will be based on the previous owner’s assessment (adjusted for revaluation), not the new owner’s higher assessment. This prevents immediate tax increases when purchasing a home, ensuring the credit applies automatically from the date they gain legal ownership. The bill directly affects first-time homebuyers purchasing primary residences in Maryland, effective for taxable years beginning after June 30, 2025.