Baltimore County - Homestead Property Tax Credit Percentage

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0603*

HOUSE BILL 603
Q2 6lr1378

By: Delegates R. Long and Mangione
Introduced and read first time: January 28, 2026
Assigned to: Ways and Means

A BILL ENTITLED

AN ACT concerning 1

Baltimore County – Homestead Property Tax Credit Percentage 2

FOR the purpose of requiring the homestead property tax credit percentage in Baltimore 3
County to be a certain number; and generally relating to the homestead property tax 4
credit in Baltimore County. 5

BY repealing and reenacting, without amendments, 6
Article – Tax – Property 7
Section 9–105(b)(1) 8
Annotated Code of Maryland 9
(2019 Replacement Volume and 2025 Supplement) 10

BY repealing and reenacting, with amendments, 11
Article – Tax – Property 12
Section 9–105(e) 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

9–105. 19

(b) (1) If there is an increase in property assessment as calculated under this 20
section, the State and the governing body of each county and of each municipal corporation 21
shall grant a property tax credit under this section against the State, county, and municipal 22
corporation property tax imposed on real property by the State, county, or municipal 23
corporation. 24

2 HOUSE BILL 603

(e) (1) For each taxable year, the property tax credit under this section is 1
calculated by: 2

(i) multiplying the prior year’s taxable a ssessment by the 3
homestead credit percentage as provided under paragraph (2) of this subsection; 4

(ii) subtracting that amount from the current year’s assessment; and 5

(iii) if the difference is a positive number, multiplying the difference 6
by the applicable property tax rate for the current year. 7

(2) For each taxable year, the homestead credit percentage under 8
paragraph (1)(i) of this subsection is: 9

(i) for the State property tax and for any property tax imposed for a 10
bicounty commission, 110%; 11

(ii) for the county property tax: 12

1. the homestead credit percentage established by the county 13
under paragraph (3) of this subsection; or 14

2. if the county has not set a percentage for the taxable year 15
under paragraph (3) of this subsection or has not notified the Department as required under 16
paragraph (6) of this subsection, the homestead credit percentage in effect for the county 17
for the preceding taxable year; and 18

(iii) for the municipal corporation property tax: 19

1. the homestea d credit percentage established by the 20
municipal corporation under paragraph (4) of this subsection; or 21

2. if the municipal corporation has not set a percentage 22
under paragraph (4) of this subsection or has not notified the Department as required under 23
paragraph (7) of this subsection, the homestead credit percentage for the taxable year for 24
the county in which the property is located. 25

(3) Subject to paragraph (5) of this subsection, the Mayor and City Council 26
of Baltimore City and the governing bod y of a county on or before March 15 of any year 27
shall set, by law, the homestead credit percentage for the taxable year beginning the 28
following July 1. 29

(4) Subject to paragraph (5) of this subsection, on or before March 25 of any 30
year, the governing body of a municipal corporation may set or alter, by law, a homestead 31
credit percentage for the taxable year beginning the following July 1 and any subsequent 32
taxable year. 33

HOUSE BILL 603 3

(5) (I) [The] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 1
PARAGRAPH, THE homestead credit percentage for any county or municipal corporation 2
property tax: 3

[(i)] 1. may not be less than 100% or exceed 110% for any taxable 4
year; and 5

[(ii)] 2. shall be expressed in increments of 1 percentage point. 6

(II) THE HOMESTEAD CREDIT PERCENTAGE IN BALTIMORE 7
COUNTY SHALL BE 100%. 8

(6) The Mayor and City Council of Baltimore City and the governing body 9
of a county shall notify the Department of any action taken under paragraph (3) of this 10
subsection on or before March 15 preceding the taxable year for which the action is taken. 11

(7) A municipal corporation shall notify the Department of any action 12
taken under paragraph (4) of this subsection on or before March 25 preceding the taxable 13
year for which the action is taken. 14

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 15
1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026. 16