Budget & Taxes (Tax Incentives)

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 287 allows local governments in Maryland to designate *noncontiguous* blighted areas as development districts for tax increment financing (TIF). This means communities can now use TIF tools for economic development projects in disconnected land parcels (like separate lots in a blighted neighborhood) that were previously ineligible under the law. The bill amends Maryland’s Economic Development Code to explicitly include "noncontiguous" areas in the definition of "development district" and updates related sections to permit this designation. It directly affects counties, cities, and other local governments seeking to revitalize fragmented blighted areas through TIF. The change takes effect October 1, 2026.

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.