Property Tax Credit - Retail Service Station Conversions

Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Delegates Ruth , Allen , Behler , Fair , Feldmark , Lehman , McCaskill , Miller , Pena-Melnyk , Solomon , Terrasa , Tomlinson , Ziegler , Coley , Ebersole , Vogel , and Young
Last action: 2026-05-26
Official status: Approved by the Governor - Chapter 643
Effective date: 2026-06-01

Plain English Breakdown

Checked against official source text during the last sync.

Property Tax Credit for Converting Retail Service Stations

This law allows local governments to give property tax credits to people who change retail service stations into other uses, like homes or stores, if they close underground storage tanks.

What This Bill Does

Allows the Mayor and City Council of Baltimore City or county governing bodies to grant a property tax credit for real estate that was once used as a retail service station but is now used differently.
Requires that any underground storage tanks on the property must be permanently closed before granting the tax credit.
Sets rules for how local governments can decide the amount and duration of the tax credit, eligibility criteria, application process, and other necessary provisions.
Provides state funding to counties or cities that grant this tax credit by covering 50% of the lost revenue from property taxes.

Who It Names or Affects

Local government bodies in Baltimore City and other counties
Property owners who convert retail service stations into different uses

Terms To Know

Discount Store: A retail store that offers for sale a combination and variety of convenience and consumer shopping goods, with the majority of items priced not to exceed $5.
Retail Use: The use of property for selling goods or services, excluding certain types like discount stores, self-service storage facilities, and specific licensed retailers.

Limits and Unknowns

This law only applies to taxable years starting after June 30, 2026.
It does not specify the exact amount of tax credit or how long it lasts; these details are left up to local governments.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

263224/1

None

Favorable with Amendments { 263224/1 Adopted

Plain English: AMENDMENTS TO HOUSE BILL 161 (First Reading File Bill) AMENDMENT NO.

AMENDMENTS TO HOUSE BILL 161 (First Reading File Bill) AMENDMENT NO.
1 On page 1, in the sponsor line, strike “and Z iegler” and substitute “Ziegler, Coley, Ebersole, Vogel, and Young”; and strike beginning with “authorizing” in line 7 down through “corporation;” in line 9.
AMENDMENT NO.
2 On page 2, strike beginning with “AS” in line 7 down through “FACILITY” in line 8 and substitute “BY: (I) A DISCOUNT STORE; (II) A SELF–SERVICE STORAGE FACILITY; (III) A LICENSED RETAILER OF CIGARETTES UNDER TITLE 16 OF THE BUSINESS REGULATION ARTICLE; (IV) A LICENSED OTHER TOBAC CO PRODUCTS RETAILER OR TOBACCONIST, AS DEFINED IN § 16.5–101 OF THE BUSINESS REGULATION ARTICLE; (V) AN ELECTRONIC SMOKING DEVICES RETAILER OR A VAPE SHOP VENDOR , AS DEFINED IN § 16.7–101 OF THE BUSINESS REGULATION ARTICLE; OR HB0161/263224/1 BY: Ways and Means Committee HB0161/263224/01 Ways and Means Committee Amendments to HB 161 Page 2 of 2 (VI) A HOLDER OF A CLASS A RETAIL ALCOHOLIC BEVERAGES LICENSE UNDER DIVISION II OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE”; after line 20, insert: “(D) THE TAX CREDIT UNDER THIS SECTION MAY NOT BE GRANTED FOR REAL PROPERTY UNLESS UNDERGROUND STORAGE TANKS LOCATE D ON OR FORMERLY LOCATED ON THE REAL PROPERTY HAVE BEEN P ERMANENTLY CLOSED IN ACCORDANCE WITH R EGULATIONS OF THE DEPARTMENT OF THE ENVIRONMENT.”; and in line 21, strike “(D)” and substitute “(E)”.

Bill History

2026-05-26 Post Passage
Approved by the Governor - Chapter 643
2026-04-03 Senate
Favorable Report by Budget and Taxation
2026-03-25 Senate
Hearing 3/31 at 1:00 p.m.
2026-03-21 House
Returned Passed
2026-03-18 Senate
Third Reading Passed (46-0)
2026-03-16 Senate
Favorable Adopted
2026-03-16 Senate
Second Reading Passed
2026-03-09 House
Favorable with Amendments Report by Ways and Means
2026-02-27 House
Third Reading Passed (129-7)
2026-02-27 Senate
Referred Budget and Taxation
2026-02-26 House
Favorable with Amendments { 263224/1 Adopted
2026-02-26 House
Second Reading Passed with Amendments
2026-01-14 House
First Reading Ways and Means
2026-01-13 House
Hearing 1/20 at 1:00 p.m.
2025-09-10 House
Pre-filed
Maryland General Assembly
Text - First - Property Tax Credit - Retail Service Station Conversions
Maryland General Assembly
Vote - House - Committee - Ways and Means
Maryland General Assembly
Text - Third - Property Tax Credit - Retail Service Station Conversions
Maryland General Assembly
Vote - Senate - Committee - Budget and Taxation
Maryland General Assembly
Text - Chapter - Property Tax Credit - Retail Service Station Conversions

Official Summary Text

Authorizing the Mayor and City Council of Baltimore City or the governing body of a county or municipal corporation to grant, by law, a credit against the county or municipal corporation property tax on real property if use of the real property has been converted from a retail service station to other certain uses; prohibiting the application of the credit unless the underground storage tanks located on or formerly located on the real property have been permanently closed; and applying the Act to all taxable years after June 30, 2026.

Current Bill Text

Read the full stored bill text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0161*

HOUSE BILL 161
Q1 6lr0815
HB 341/25 – W&M (PRE–FILED) CF SB 58
By: Delegates Ruth, Allen, Behler, Fair, Feldmark, Lehman, McCaskill , Miller,
Pena–Melnyk, Solomon, Terrasa, Tomlinson, and Ziegler Ziegler, Coley,
Ebersole, Vogel, and Young
Requested: September 10, 2025
Introduced and read first time: January 14, 2026
Assigned to: Ways and Means
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 26, 2026

CHAPTER ______

AN ACT concerning 1

Property Tax Credit – Retail Service Station Conversions 2

FOR the purpose of authorizing the Mayor and City Council of Baltimore City or the 3
governing body of a county or municipal corporation to grant, by law, a credit against 4
the county or municipal corporation property tax imposed on real property if use of 5
the real property has been converted from a retail service station to other certain 6
uses; authorizing the State to pay to each county or municipal corporation that 7
grants the property tax credit under this Act an amount equal to a certain percentage 8
of certa in forgone revenue of the county or municipal corporation; and generally 9
relating to a property tax credit for retail service station conversions. 10

BY adding to 11
Article – Tax – Property 12
Section 9–276 13
Annotated Code of Maryland 14
(2019 Replacement Volume and 2025 Supplement) 15

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17

Article – Tax – Property 18

2 HOUSE BILL 161

9–276. 1

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 2
INDICATED. 3

(2) “DISCOUNT STORE” MEANS A RETAIL STORE THAT OFFERS FOR 4
SALE: 5

(I) A COMBINATION AND VA RIETY OF CONVENIENCE AND 6
CONSUMER SHOPPING GOODS; AND 7

(II) THE MAJORITY OF THE ITEMS IN THE INVENTO RY AT A 8
PRICE NOT TO EXCEED $5. 9

(3) “RETAIL USE” DOES NOT INCLUDE USE AS A DISCOUNT STORE OR 10
A SELF–SERVICE STORAGE FACILITY BY: 11

(I) A DISCOUNT STORE; 12

(II) A SELF–SERVICE STORAGE FACILITY; 13

(III) A LICENSED RETAILER OF CIGARETTES UNDER TITLE 16 OF 14
THE BUSINESS REGULATION ARTICLE; 15

(IV) A LICENSED OTHER TOB ACCO PR ODUCTS RETAILER OR 16
TOBACCONIST, AS DEFINED IN § 16.5–101 OF THE BUSINESS REGULATION ARTICLE; 17

(V) AN ELECTRONIC SMOKIN G DEVICES RETAILER O R A VAPE 18
SHOP VENDOR, AS DEFINED IN § 16.7–101 OF THE BUSINESS REGULATION ARTICLE; 19
OR 20

(VI) A HOLDER OF A CLASS A RETAIL ALCOHOLIC BEV ERAGES 21
LICENSE UNDER DIVISION II OF THE ALCOHOLIC BEVERAGES AND CANNABIS 22
ARTICLE. 23

(B) IT IS THE INTENT OF T HE GENERAL ASSEMBLY THAT A PROPERTY TAX 24
CREDIT AUTHORIZED UN DER THIS SECTION BE GRANTED PRIMARILY TO DEFRAY 25
COSTS ASSOCIATED WITH THE REMOVAL OF UNDERGROUND STORAGE TANKS AND 26
THE REMEDIATION OF A NY CONTAMINATION ASS OCIATED WITH UNDERGR OUND 27
STORAGE TANKS. 28

(C) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 29
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY GRANT, BY LAW, 30
A PROPERTY TAX CREDI T UNDER THIS SECTION AGAINST THE COUNTY O R 31
HOUSE BILL 161 3

MUNICIPAL CORPORATION PROPERTY TAX IMPOSED ON REAL PROPERTY IF THE USE 1
OF THE REAL PROPERTY HAS BEEN CONVERTED FROM A RETAIL SERVICE STATION 2
TO ANOTHER RETAIL US E, A RESIDENTIAL USE , OR A MI XED RETAIL AND 3
RESIDENTIAL USE. 4

(D) THE TAX CREDIT UNDER THIS SECTION MAY NOT BE GRANTED FOR REAL 5
PROPERTY UNLESS UNDE RGROUND STORAGE TANK S LOCATED ON OR FORM ERLY 6
LOCATED ON THE REAL PROPERTY HAVE BEEN P ERMANENTLY CLOSED IN 7
ACCORDANCE WITH REGULATIONS OF THE DEPARTMENT OF THE ENVIRONMENT. 8

(D) (E) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 9
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY PROV IDE, BY 10
LAW, FOR: 11

(1) THE AMOUNT AND DURAT ION OF THE TAX CREDI T UNDER THIS 12
SECTION; 13

(2) ADDITIONAL ELIGIBILITY CRITERIA FOR THE TAX CREDIT; 14

(3) REGULATIONS AND PROC EDURES FOR THE APPLI CATION AND 15
UNIFORM PROCESSING OF REQUESTS FOR THE TAX CREDIT; AND 16

(4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THE TAX 17
CREDIT UNDER THIS SECTION. 18

(E) THE STATE MAY PAY TO EACH COUNTY O R MUNICIPAL CORPORAT ION 19
THAT GRANTS THE TAX CREDIT UNDER THIS SECTION AN AMOUNT EQUAL TO 50% OF 20
THE PROPERTY TAX REV ENUE THAT WOULD HAVE BEEN COLLECTED IF TH E TAX 21
CREDIT UNDER THIS SECTION HAD NOT BEEN GRANTED. 22

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 23
1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026. 24

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.