Read the full stored bill text
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0090*
HOUSE BILL 90
Q1 6lr0865
HB 23/25 – W&M (PRE–FILED) CF SB 224
By: Delegates Fair, Palakovich Carr, Behler, Charkoudian, Pasteur, and Ruth
Requested: September 16, 2025
Introduced and read first time: January 14, 2026
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Property Taxes – Authority of Counties to Establish a Subclass and Set a 2
Special Rate for Commercial and Industrial Property 3
FOR the purpose of authorizing the Mayor and City Council of Baltimore City or the 4
governing body of a county to establish, by law, a subclass of real property consisting 5
of certain commercial and industrial property and to set a special property tax rate 6
for certain commercial and industrial property for the purpose of financing certain 7
transportation improvements or the approved budget of the county board of 8
education; requiring that the special rate shall be in addition to a certain general tax 9
rate, may not exceed a certain amount, and may not apply to the residential portion 10
of a mixed –use building that receives a certain exemption or credit; requiring the 11
Mayor and City Council of Baltimore City or the governing body of a county to grant 12
either a prope rty tax exemption or a property tax credit against a special rate on 13
commercial and industrial property for the residential portion of a mixed –use 14
building; requiring the exemption or credit to be granted automatically under certain 15
circumstances; requiring a county to provide notice of the exemption or credit and 16
accept applications for the exemption or credit; authorizing the Mayor and City 17
Council of Baltimore City or the governing body of a county to grant a property tax 18
credit against a special rate on commercial and industrial property imposed on real 19
property owned or leased by certain businesses with fewer than a certain number of 20
employees; and generally relating to a special property tax rate for commercial and 21
industrial property. 22
BY repealing and reenacting, with amendments, 23
Article – Tax – Property 24
Section 6–202.1 and 6–302(b) 25
Annotated Code of Maryland 26
(2019 Replacement Volume and 2025 Supplement) 27
BY adding to 28
2 HOUSE BILL 90
Article – Tax – Property 1
Section 6–302(e) and (f), 7–402, 9–112, and 9–276 2
Annotated Code of Maryland 3
(2019 Replacement Volume and 2025 Supplement) 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That the Laws of Maryland read as follows: 6
Article – Tax – Property 7
6–202.1. 8
The Mayor and City Council of Baltimore City or the governing body of a county may 9
establish, by law, a subclass of real property consisting of: 10
(1) vacant lots or improved property cited as vacant and unfit for habitation 11
or other authorized use on a housing or building violation notice; OR 12
(2) ALL REAL PROPERTY TH AT IS ASSIGNED THE F OLLOWING LAND 13
USE CODES, AS DEFINED BY THE MARYLAND ASSESSMENT PROCEDURE MANUAL: 14
(I) COMMERCIAL; 15
(II) INDUSTRIAL; 16
(III) COMMERCIAL/INDUSTRIAL CONDOMINIUM; 17
(IV) RESIDENTIAL/COMMERCIAL; AND 18
(V) COMMERCIAL/RESIDENTIAL. 19
6–302. 20
(b) (1) Except as provided in [subsection] SUBSECTIONS (c) AND (E) of this 21
section and §§ 6–305 and 6–306 of this subtitle: 22
(i) there shall be a single county property tax rate for all real 23
property subject to co unty property tax except for operating real property described in § 24
8–109(c) of this article; and 25
(ii) the county tax rate applicable to personal property and the 26
operating real property described in § 8 –109(c) of this article shall be no more than 2. 5 27
times the rate for real property. 28
(2) Paragraph (1) of this subsection does not affect a special rate prevailing 29
in a taxing district or part of a county. 30
HOUSE BILL 90 3
(E) (1) SUBJECT TO THE REQUIR EMENTS OF THIS SUBSECTION, THE 1
MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING BODY OF A 2
COUNTY MAY SET A SIN GLE SPECIAL RATE FOR ALL REAL PROPERTY TH AT IS 3
ASSIGNED THE FOLLOWI NG LAND USE CODES , AS DEFINED BY THE MARYLAND 4
ASSESSMENT PROCEDURE MANUAL: 5
(I) COMMERCIAL; 6
(II) INDUSTRIAL; 7
(III) COMMERCIAL/INDUSTRIAL CONDOMINIUM; 8
(IV) RESIDENTIAL/COMMERCIAL; AND 9
(V) COMMERCIAL/RESIDENTIAL. 10
(2) A SPECIAL RATE SET UND ER PARAGRAPH (1) OF THIS 11
SUBSECTION MAY BE IMPOSED ONLY: 12
(I) WITHIN A SPECIAL TAXING DISTRICT ESTABLISHED FOR THE 13
PURPOSE OF FINANCING THE COST OF STATE OR COUNTY TRANS PORTATION 14
IMPROVEMENTS UNDER TITLE 21, SUBTITLE 7 OF THE LOCAL GOVERNMENT 15
ARTICLE; OR 16
(II) ON A COUNTYWIDE BASI S FOR THE PURPOSE OF FUNDING 17
THE APPROVED BUDGET OF THE COUNTY BOARD OF EDUCATION. 18
(3) A SPECIAL RATE SET UND ER PARAGRAPH (1) OF THIS 19
SUBSECTION: 20
(I) SHALL BE IN ADDITION TO THE GENERAL REAL PROPERTY 21
TAX RATE SET UNDER SUBSECTION (B)(1) OF THIS SECTION; 22
(II) MAY NOT EXCEED A COM BINED TOTAL OF 12.5 CENTS FOR 23
EACH $100 OF ASSESSED V ALUE FOR BOTH OF THE PURPOSES SPECIFIED I N 24
PARAGRAPH (2) OF THIS SUBSECTION; AND 25
(III) MAY NOT APPLY TO THE RESIDENTIAL PORTION OF A 26
MIXED–USE PROPERTY THAT RECEIVES EITHER AN EXEMPTION FROM THE SPECIAL 27
RATE UNDER § 7–402 OF THIS ARTICLE OR A CREDIT AGAINST THE SPECIAL RATE 28
UNDER § 9–112 OF THIS ARTICLE. 29
4 HOUSE BILL 90
(F) IF A COUNTY SETS A SPECIAL PROPERTY TAX RATE UNDER SUBSECTION 1
(C) OR (E) OF THIS SECTION , IT SHALL PROMPTLY SE ND A NOTICE TO THE 2
DEPARTMENT THAT INCLUDES: 3
(1) THE AMOUNT OF THE RATE; AND 4
(2) THE CLASS OF PROPERTY TO WHICH THE RATE APPLIES. 5
7–402. 6
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 7
INDICATED. 8
(2) “MIXED–USE PROPERTY ” MEANS A PROPERTY THA T INCLUDES 9
BOTH: 10
(I) A COMMERCIAL OR INDUSTRIAL USE; AND 11
(II) A RESIDENTIAL USE. 12
(3) “PUBLICLY AVAILABLE RECORDS” INCLUDES: 13
(I) VALUATION RECORDS OF THE DEPARTMENT; 14
(II) COUNTY RECORDS , INCLUDING LICENSE OR PERMIT 15
RECORDS; AND 16
(III) ANY OTHER RECORD FROM A GOVERNMENTAL OR PRIVATE 17
SOURCE THAT IS ACCESSIBLE TO A COUNTY AND PROVIDES RELIABLE INFORMATION 18
ON THE USE OF PROPERTY. 19
(B) IF THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 20
GOVERNING BODY OF A COUNTY SETS A SPECIA L RATE UNDER § 6–302(E) OF THIS 21
ARTICLE, THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING 22
BODY OF THE COUNTY SHALL, BY LAW, GRANT EITHER: 23
(1) A CREDIT AGAINST THE SPECIAL RATE FOR THE ENTIRE 24
RESIDENTIAL PORTION OF A MIXED–USE PROPERTY IN ACCORDANCE WITH § 9–112 25
OF THIS ARTICLE; OR 26
(2) AN EXEMPTION FROM TH E SPECIAL RATE FOR THE ENTIRE 27
RESIDENTIAL PORTION OF A MIXED –USE PROPERTY IN ACCO RDANCE WITH THIS 28
SECTION. 29
HOUSE BILL 90 5
(C) A COUNTY MAY CALCULATE THE EXEMPTION UNDER THIS SECTION: 1
(1) AS A PERCENTAGE OF A MIXED–USE PROPERTY ’S SPECIAL TAX 2
LIABILITY THAT IS EQ UAL TO THE PERCENTA GE OF THE TOTAL SQUA RE FOOTAGE 3
OF THE PROPERTY THAT IS USED FOR RESIDENTIAL PURPOSES; 4
(2) AS A PERCENTAGE OF A MIXED–USE PROPERTY ’S SPECIAL TAX 5
LIABILITY THAT IS EQUAL TO THE PERCENTAGE OF THE TOTAL INCOME PRODUCED 6
BY THE PROPERTY THAT IS DERIVED FROM RESIDENTIAL USE; OR 7
(3) USING ANY OTHER REAS ONABLE METHOD THAT E NSURES THE 8
ENTIRE RESIDENTIAL PORTION OF A MIXED–USE PROPERTY IS NOT SUBJECT TO THE 9
SPECIAL RATE. 10
(D) THE EXEMPTION UNDER THIS SECTION CONTINUES FOR AS LONG AS THE 11
SPECIAL RATE IS IN EFFECT. 12
(E) A COUNTY SHALL AUTOMATICALLY GRANT THE EXEMPTION UNDER THIS 13
SECTION WITHOUT REQU IRING AN APPLICATION FROM THE PROPERTY OW NER IF, 14
BASED ON PUBLICLY AVAILABLE RECORDS, THE COUNTY IS ABLE TO: 15
(1) IDENTIFY A MIXED –USE PROPERTY THAT IS SUBJECT TO THE 16
SPECIAL RATE; AND 17
(2) CALCULATE THE EXEMPT ION DUE FOR THE RESI DENTIAL 18
PORTION OF THAT MIXED–USE PROPERTY. 19
(F) (1) IF, BASED ON PUBLICLY AVAILABLE RECORDS, A COUNTY IS ABLE 20
TO IDENTIFY A MIXED–USE PROPERTY THAT IS SUBJECT TO THE SPECIAL RATE BUT 21
HAS INSUFFICIENT INF ORMATION TO CALCULAT E THE EXEMPTION DUE FOR THE 22
RESIDENTIAL PORTION OF THAT MIXED–USE PROPERTY, THE COUNTY MAY REQUEST 23
ADDITIONAL INFORMATION FROM THE OWNER OF THE MIXED–USE PROPERTY TO 24
ENABLE THE COUNTY TO CALCULATE THE EXEMPTION DUE. 25
(2) IF AN OWNER OF A MIXE D–USE PROPERTY DOES NO T PROVIDE 26
THE INFORMATION REQUESTED TO CALCULATE THE EXEMPTION DUE, THE COUNTY 27
IS NOT REQUIRED TO G RANT THE EXEMPTION U NDER THIS SECTION TO THAT 28
MIXED–USE PROPERTY. 29
(G) A COUNTY SHALL ACCEPT APPLICATIONS FOR THE EXEMPTION UNDER 30
THIS SECTION FROM AN OWNER OF A MIXED –USE PROPERTY THAT IS NOT 31
AUTOMATICALLY GRANTE D AN EXEMPTION UNDER SUBSECTION (E) OF THIS 32
SECTION. 33
6 HOUSE BILL 90
(H) (1) A COUNTY SHALL PROVIDE WRITTEN NOTICE OF THE EXEMPTION 1
UNDER THIS SECTION TO THE OWNER OF EACH PROPERTY THAT IS SUBJECT TO THE 2
SPECIAL RATE AND IS NOT AUTOMATICALLY GR ANTED AN EXEMPTION U NDER 3
SUBSECTION (E) OF THIS SECTION. 4
(2) THE NOTICE SHALL INCLUDE: 5
(I) A DESCRIPTION OF THE EXEMPTION UNDER THIS SECTION; 6
AND 7
(II) INSTRUCTIONS ON HOW TO APPLY FOR THE EXEMPTION. 8
(I) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 9
GOVERNING BODY OF A COUNTY MAY PROVIDE, BY LAW, FOR: 10
(1) REGULATIONS AND PROC EDURES FOR THE APPLI CATION AND 11
UNIFORM PROCESSING OF REQUESTS FOR THE EXEMPTION; AND 12
(2) ANY OTHER PROVISION NECESSARY TO CARRY O UT THE 13
EXEMPTION UNDER THIS SECTION. 14
9–112. 15
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 16
INDICATED. 17
(2) “MIXED–USE PROPERTY ” MEANS A PROPERTY THA T INCLUDES 18
BOTH: 19
(I) A COMMERCIAL OR INDUSTRIAL USE; AND 20
(II) A RESIDENTIAL USE. 21
(3) “PUBLICLY AVAILABLE RECORDS” INCLUDES: 22
(I) VALUATION RECORDS OF THE DEPARTMENT; 23
(II) COUNTY RECORDS , INCLUDING LICENSE OR PERMIT 24
RECORDS; AND 25
(III) ANY OTHER RECORD FRO M A GOVERNMENTAL OR A 26
PRIVATE SOURCE THAT IS ACCESSIBLE TO A C OUNTY AND PROVIDES R ELIABLE 27
INFORMATION ON THE USE OF PROPERTY. 28
HOUSE BILL 90 7
(B) IF THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 1
GOVERNING BODY OF A COUNTY SETS A SPECIA L RATE UNDER § 6–302(E) OF THIS 2
ARTICLE, THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING 3
BODY OF THE COUNTY SHALL, BY LAW, GRANT EITHER: 4
(1) AN EXEMPTION FROM TH E SPECIAL RATE FOR T HE ENTIRE 5
RESIDENTIAL PORTION OF A MIXED–USE PROPERTY IN ACCORDANCE WITH § 7–402 6
OF THIS ARTICLE; OR 7
(2) A CREDIT AGAINST THE SPECIAL RATE FOR THE ENTIRE 8
RESIDENTIAL PORTION OF A MIXED –USE PROPERTY IN ACCO RDANCE WITH THIS 9
SECTION. 10
(C) A COUNTY MAY CALCULATE THE CREDIT UNDER THIS SECTION: 11
(1) AS A PERCENTAGE OF A MIXED–USE PROPERTY ’S SPECIAL TAX 12
LIABILITY THAT IS EQ UAL TO THE PERCENTAG E OF THE TOTAL SQUAR E FOOTAGE 13
OF THE PROPERTY THAT IS USED FOR RESIDENTIAL PURPOSES; 14
(2) AS A PERCENTAGE OF A MIXED–USE PROPERTY ’S SPECIAL TAX 15
LIABILITY THAT IS EQUAL TO THE PERCENTAGE OF THE TOTAL INCOME PRODUCED 16
BY THE PROPERTY THAT IS DERIVED FROM RESIDENTIAL USE; OR 17
(3) USING ANY OTHER REAS ONABLE METHOD THAT E NSURES THE 18
ENTIRE RESIDENTIAL PORTION OF A MIXED–USE PROPERTY IS NOT SUBJECT TO THE 19
SPECIAL RATE. 20
(D) THE CREDIT UNDER THIS SECTION CONTINUES FO R AS LONG AS THE 21
SPECIAL RATE IS IN EFFECT. 22
(E) A COUNTY SHALL AUTOMAT ICALLY GRANT THE CRE DIT UNDER THIS 23
SECTION WITHOUT REQU IRING AN APPLICATION FROM THE PROPERTY OW NER IF, 24
BASED ON PUBLICLY AVAILABLE RECORDS, THE COUNTY IS ABLE TO: 25
(1) IDENTIFY A MIXED –USE PROPERTY THAT IS SUBJECT TO THE 26
SPECIAL RATE; AND 27
(2) CALCULATE THE CREDIT DUE FOR THE RESIDENTIAL PORTION OF 28
THAT MIXED–USE PROPERTY. 29
(F) (1) IF, BASED ON PUBLICLY AVAILABLE RECORDS, A COUNTY IS ABLE 30
TO IDENTIFY A MIXED–USE PROPERTY THAT IS SUBJECT TO THE SPECIAL RATE BUT 31
HAS INSUFFICIENT INF ORMATION TO CALCULAT E THE CREDIT DUE FOR THE 32
RESIDENTIAL PORTION OF THAT MIXED–USE PROPERTY, THE COUNTY MAY REQUEST 33
8 HOUSE BILL 90
ADDITIONAL INFORMATION FROM THE OWNER OF THE MIXED–USE PROPERTY TO 1
ENABLE THE COUNTY TO CALCULATE THE CREDIT DUE. 2
(2) IF AN OWNER OF A MIXE D–USE PROPERTY DOES NO T PROVIDE 3
THE INFORMATION REQU ESTED TO CALCULATE T HE CREDIT DUE , THE COUNTY IS 4
NOT REQUIRED TO GRANT THE CREDIT UNDER THIS SECTION TO THAT MI XED–USE 5
PROPERTY. 6
(G) A COUNTY SHALL ACCEPT APPLICATIONS FOR THE CREDIT UNDER THIS 7
SECTION FROM AN OWNE R OF A MIXED –USE PROPERTY THAT IS NOT 8
AUTOMATICALLY GRANTED A CREDIT UNDER SUBSECTION (E) OF THIS SECTION. 9
(H) (1) A COUNTY SHALL PROVIDE WRITTEN NOTICE OF TH E CREDIT 10
UNDER THIS SECTION TO THE OWNER OF EACH PROPERTY THAT IS SUBJECT TO THE 11
SPECIAL RATE AND IS NOT AUTOMATICALLY GR ANTED A CREDIT UNDER 12
SUBSECTION (E) OF THIS SECTION. 13
(2) THE NOTICE SHALL INCLUDE: 14
(I) A DESCRIPTION OF THE CREDIT UNDER THIS SECTION; AND 15
(II) INSTRUCTIONS ON HOW TO APPLY FOR THE CREDIT. 16
(I) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 17
GOVERNING BODY OF A COUNTY MAY PROVIDE, BY LAW, FOR: 18
(1) REGULATIONS AND PROC EDURES FOR THE APPLI CATION AND 19
UNIFORM PROCESSING OF REQUESTS FOR THE CREDIT; AND 20
(2) ANY OTHER PROVISION NECESSARY TO CARRY O UT THE CREDIT 21
UNDER THIS SECTION. 22
9–276. 23
(A) IF THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 24
GOVERNING BODY OF A COUN TY SETS A SPECIAL RA TE UNDER § 6–302(E) OF THIS 25
ARTICLE, THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING 26
BODY OF THE COUNTY MAY GRANT, BY LAW, A PROPERTY TAX CREDIT AGAINST THE 27
SPECIAL RATE IMPOSED ON REAL PROPERTY OWN ED OR LEASED BY A BUSIN ESS 28
THAT EMPLOYS 15 OR FEWER EMPLOYEES. 29
(B) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 30
GOVERNING BODY OF A COUNTY MAY PROVIDE, BY LAW, FOR: 31
HOUSE BILL 90 9
(1) THE AMOUNT AND DURATION OF THE TAX CREDIT; 1
(2) ADDITIONAL ELIGIBILITY REQUIREMENTS FOR THE TAX CREDIT; 2
(3) PROCEDURES FOR THE APPLICATION AND UNIFORM PROCESSING 3
OF REQUESTS FOR THE TAX CREDIT; AND 4
(4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THE TAX 5
CREDIT UNDER THIS SECTION. 6
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 7
1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026. 8