HB 1427 modifies Maryland's Renters' Tax Credit, Homeowners' Tax Credit, and Homestead Tax Credit by adjusting income thresholds, calculation formulas, and maximum credit amounts. It increases the maximum annual credit for renters from $1,200 (2027) to $2,000 (2029+), and for homeowners from $1,500 (2028) to $2,000 (2029+), while raising income thresholds for eligibility. The bill specifies phased-in income percentages (e.g., 0% on first $16,000 of income for renters in 2029+) and adds a $200,000 net worth limit for renters. It directly affects low-to-moderate-income renters (including seniors/disabled individuals) and homeowners meeting revised income criteria. These changes apply to tax years beginning July 1, 2027, and subsequent years.
HB 826 freezes increases to the assessed value of residential property in Maryland for taxable years 2026 through 2028. It directly affects homeowners by preventing local governments from raising property tax assessments based on market value during this period, unless specific exceptions apply. These exceptions include zoning changes initiated by the owner, significant improvements adding at least $100,000 in value, changes in property use, or errors in calculation. The bill does not alter tax rates or affect commercial properties, only limiting assessment increases for residential homes.
SB 765 creates an "Heirs Protection Program" administered by Maryland's State Tax Sale Ombudsman to protect heirs who inherit homes from property tax sales. It allows heirs (including those not yet recorded as title holders) to become the legal owner of an inherited dwelling, preventing tax sales and enabling them to remain in their homes. The bill establishes an Heirs Protection Fund financed by state and county governments to support the program, including outreach, grants, and information dissemination. It also expands eligibility for homeowner and homestead tax credits to include qualifying heirs who haven’t yet updated land records, under specific conditions. These changes aim to prevent displacement of families after a homeowner’s death.
HB 888 expands Washington County's property tax credit program for disabled veterans to include members of the National Oceanic and Atmospheric Administration (NOAA) and Public Health Service (PHS) who meet the same disability and service criteria as military veterans. The bill amends existing law to add these federal service members to the definition of "disabled veteran," allowing them to qualify for a credit equal to their VA disability rating percentage on their primary residence. This change directly affects eligible NOAA and PHS members who are disabled veterans under federal standards, as well as their surviving spouses who meet ownership and residency requirements. The credit applies to property tax on the dwelling house owned by qualifying individuals, effective June 1, 2026.
HB 846 exempts property owned by the City of Hagerstown and the Hagerstown Multi-Use Sports and Events Facility, Inc. from property tax when used primarily for public social, recreational, or entertainment purposes. It applies retroactively to taxable years beginning after June 30, 2023, requiring the State, Washington County, and the City to refund any excess property tax paid during that period. The bill modifies Maryland’s property tax code (specifically Sections 7-251 and 7-524) to establish this exemption and refund process. This directly affects the City of Hagerstown and the sports facility organization by reducing their future property tax burden and securing refunds for prior overpayments.
HB 783 requires Washington County and its municipalities to grant a 100% property tax credit against county and municipal taxes for real property owned by Platoon 22, Incorporated, provided the property is used to provide housing for veterans. The bill directly affects Platoon 22, a nonprofit organization, by eliminating property tax liability on qualifying housing properties. Key provisions mandate this tax credit be implemented through local law, applying to all taxable years beginning after June 30, 2026. This is a targeted tax exemption for a specific organization’s veteran housing operations, not a broad policy change.
HB 1595 allows Maryland counties (and Baltimore City) to create a special tax category for qualified data centers. It authorizes local governments to set a distinct personal property tax rate for data centers meeting specific investment and job creation requirements - $2 million in Tier I areas or $5 million elsewhere, plus at least five new jobs. The bill amends tax code to define "qualified data center" and establishes the mechanism for counties to implement this special rate through local law. This directly affects data centers meeting the criteria and county tax systems, changing how these facilities are taxed under personal property rules. The special rate applies to all qualifying data center personal property, not real estate.
HB 791 imposes a two-year moratorium (2026-2028) on increases to the assessed value of residential properties in Baltimore County, directly affecting homeowners whose property taxes are based on these assessments. The bill allows increases only under specific exceptions, such as major renovations adding $100,000+ in value, zoning changes, or corrections of calculation errors. It also requires Maryland’s State Department of Assessments and Taxation to hire an independent third party by December 1, 2027, to review and recommend improvements to residential property assessment practices. The department must then report its findings and planned actions to the Governor and legislature.
HB 840 would allow Baltimore City and local Maryland counties or municipalities to create a property tax credit for commercial buildings rented to small businesses. This credit applies only to buildings located in designated Arts and Entertainment Districts (under Title 4, Subtitle 7 of the Economic Development Article) or Main Street Maryland Communities (designated by the Department of Housing and Community Development). Local governments would set the credit amount, duration, eligibility rules, and application process. The bill takes effect June 1, 2026, for tax years beginning after June 30, 2026.
HB 1482 requires Maryland counties and municipalities to automatically grant a property tax credit to disabled veterans and surviving spouses who own their homes, replacing the previous "may grant" option. It increases the credit to 80% of property taxes for veterans with 70%+ service-connected disability (up from 50%), 40% for 50-69% disability (up from 25%), and 20% for 20-49% disability. To qualify, applicants must have a VA-certified disability rating, own a primary residence, and have federal adjusted gross income under $100,000. Surviving spouses may also continue receiving the credit under local laws. The bill mandates these changes starting June 1, 2026, for all taxable years after that date.
