HB 556 creates a property tax credit for Maryland households that spend a significant portion of their income on utilities. It allows Baltimore City or local counties to grant a credit against property taxes for "eligible individuals" who pay at least 25% of their household net income on utility services (electricity, gas, water, or internet) for their primary residence. Local governments would determine the credit amount, duration, and additional eligibility rules through their own ordinances. The credit applies to property taxes on the dwelling, not utility bills directly, and would take effect for taxable years starting after June 30, 2026.
HB 651 creates tax exemptions in Maryland for U.S. nationals detained or taken hostage abroad (and their spouses). It exempts their income from state income tax and waives property tax on their primary residence if the home is exclusively used by the spouse or was previously used by the detainee before their detention. The exemption applies to taxable years starting after December 31, 2025 (income tax) and June 30, 2026 (property tax). Eligibility requires federal determination under the Robert Levinson Hostage Recovery Act, with the Comptroller collaborating with the State Department to identify affected individuals.
HB 320 creates a property tax credit for Anne Arundel County landowners who sell development rights under the Rural Legacy Program. It allows the county to grant a credit against the county property tax for real property located in a designated Rural Legacy Area (as defined in Maryland’s Natural Resources Article) where the owner has sold development rights. This directly affects rural landowners participating in the Rural Legacy Program who choose to restrict future development on their land. The credit replaces an existing provision and becomes effective for tax years beginning after June 30, 2026.
SB 137 modifies Maryland's personal property tax exemption rules for small business owners. It removes restrictions that previously prevented the State Department of Assessments and Taxation from collecting information or requiring tax returns from individuals or businesses owning personal property (excluding exempt vehicles) with a total original cost under $20,000. If a taxpayer attests that their property meets this threshold, the department cannot demand tax returns or additional information. The bill applies to all taxable years beginning after June 30, 2026, and takes effect June 1, 2026. This change streamlines tax collection for low-value business property without altering the exemption threshold itself.
HB 579 creates a property tax exemption for Baltimore County homeowners aged 65+ who already qualify for the homestead property tax credit. It exempts the first $50,000 of a home's assessed value from state property tax and sets the homestead credit percentage at 100% (instead of the standard 110%) for county and municipal taxes. The bill requires Baltimore County's governing body to implement this credit and specifies that applicants must indicate their age (65+) on the credit application form. This directly affects Baltimore County seniors meeting the existing homestead credit eligibility criteria. The policy changes are limited to Baltimore County and do not alter statewide tax rates or credit calculations for other jurisdictions.
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.
