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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0652*
HOUSE BILL 652
Q1 6lr1610
HB 1214/25 – W&M
By: Delegates R. Long, Ciliberti, Griffith, Hornberger, Hutchinson, Reilly, and
Tomlinson
Introduced and read first time: January 30, 2026
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Property Tax – Homestead Property Tax Credit – First–Time Homebuyer 2
FOR the purpose of establishing the taxable assessment to be used for the calculation of 3
the homestead property tax credit for first –time homebuyers in the State; and 4
generally relating to the homestead property tax credit. 5
BY repealing and reenacting, without amendments, 6
Article – Tax – Property 7
Section 9–105(a)(1) and (b) 8
Annotated Code of Maryland 9
(2019 Replacement Volume and 2025 Supplement) 10
BY adding to 11
Article – Tax – Property 12
Section 9–105(a)(7) and (d)(9) 13
Annotated Code of Maryland 14
(2019 Replacement Volume and 2025 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Tax – Property 17
Section 9–105(a)(7) through (9) and (d)(1), 9–305(e)(1)(iii), and 14–801(c) 18
Annotated Code of Maryland 19
(2019 Replacement Volume and 2025 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – Tax – Property 23
9–105. 24
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(a) (1) In this section the following words have the meanings indicated. 1
(7) “FIRST–TIME HOMEBUYER ” MEANS AN INDIVIDUAL WHO IS A 2
RESIDENT OF THE STATE AND WHO HAS NOT HAD A LEGAL INTEREST, INDIVIDUALLY 3
OR OTHERWISE, IN A DWELLING IN ANY STATE. 4
[(7)] (8) “Homeowner” means an individual who has a legal interest in a 5
dwelling or who is an active member of an agricultural ownership entity that has a legal 6
interest in a dwelling. 7
[(8)] (9) “Legal interest” means an interest in a dwelling: 8
(i) as a sole owner; 9
(ii) as a joint tenant; 10
(iii) as a tenant in common; 11
(iv) as a tenant by the entireties; 12
(v) through membership in a cooperative; 13
(vi) under a land installment contract, as defined in § 10 –101 of the 14
Real Property Article; 15
(vii) as a holder of a life estate; or 16
(viii) as a settlor, grantor, or beneficiary of a trust if: 17
1. the settlor, grantor, or beneficiary of the trust does not pay 18
rent or other remuneration to reside in the dwelling; and 19
2. legal title to the dwelling is held in the name of the trust 20
or in the names of the trustees for the trust. 21
[(9)] (10) (I) [“Taxable] EXCEPT AS PROVIDED IN SUBPARAGRAPH 22
(II) OF THIS PARAGRAPH, “TAXABLE assessment” means the assessment on which the 23
property tax rate was imposed in the preceding taxable year, adjusted by the phased –in 24
assessment increase resulting from a revaluation under § 8–104(c)(1)(iii) of this article, less 25
the amount of any assessmen t on which a property tax credit under this section is 26
authorized. 27
(II) NOTWITHSTANDING SUBSE CTION (D)(1)(I) OF THIS 28
SECTION, FOR THE FIRST TAXABL E YEAR FOR WHICH A F IRST–TIME HOMEBUYER 29
OWES PROPERTY TAXES ON A DWELLING , “TAXABLE ASSESSMENT ” MEANS THE 30
HOUSE BILL 652 3
ASSESSMENT ON WHICH THE PROPERTY TAX RATE WAS IMPOSED IN THE PRECEDING 1
TAXABLE YEAR FOR THE PREVIOUS OWNER , ADJUSTED BY THE PHAS ED–IN 2
ASSESSMENT INCREASE RESULTING FROM A REV ALUATION UNDER § 3
8–104(C)(1)(III) OF THIS ARTICLE , LESS THE AMOUNT OF A NY ASSESSM ENT ON 4
WHICH A PROPERTY TAX CREDIT UNDER THIS SECTION IS AUTHORIZED. 5
(b) (1) If there is an increase in property assessment as calculated under this 6
section, the State and the governing body of each county and of each municipal corporation 7
shall grant a property tax credit under this section against the State, county, and municipal 8
corporation property tax imposed on real property by the State, county, or municipal 9
corporation. 10
(2) A property tax credit granted under this section shall be applicable to 11
any State, county, or municipal corporation property tax and any property tax imposed for 12
a bicounty commission. 13
(d) (1) Subject to the provisions of paragraph (6) of this subsection AND 14
EXCEPT AS PROVIDED IN PARAGRAPH (9) OF THIS SUBSECTION, the Department shall 15
authorize and the State, a county, or a municipal corporation shall grant a property tax 16
credit under this section for a taxable year unless during the previous taxable year: 17
(i) the dwelling was transferred for consideration to new ownership; 18
(ii) the value of the dwelling was increased due to a change in the 19
zoning classification of the dwelling initiated or requested by the homeowner or anyone 20
having an interest in the property; 21
(iii) the use of the dwelling was changed substantially; or 22
(iv) the assessment of the dwelling was clearly erroneous due to an 23
error in calculation or measurement of improvements on the real property. 24
(9) NOTWITHSTANDING PARAGRAPH (1)(I) OF THIS SUBSECTION AND 25
SUBJECT TO THE PROVI SIONS OF PARAGRAPH (6) OF THIS SUBSECTION , THE 26
DEPARTMENT SHALL AUTH ORIZE AND THE STATE, A COUNTY , OR A MUNICIPAL 27
CORPORATION SHALL GRANT A PROPERTY TAX C REDIT UNDER THIS SECTION TO A 28
FIRST–TIME HOMEBUYER BEGINNING WITH THE FIRST TAXABLE YEAR IN WHICH THE 29
FIRST–TIME HOMEBUYER HAS A LEGAL INTEREST IN THE DWELLING. 30
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 31
as follows: 32
Article – Tax – Property 33
9–305. 34
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(e) (1) Subject to paragraphs (2) and (3) of this subsection, the governing body 1
of Baltimore County may grant, by law, a property tax credit against the county property 2
tax imposed on residential real property that is: 3
(iii) used as the principal residence of a homeowner as defined in [§ 4
9–105(a)(7)] § 9–105 of this title; and 5
14–801. 6
(c) “Owner–occupied residential property” means, with respect to a property 7
located in Baltimore City, the principal residence of a homeowner as defined in [§ 8
9–105(a)(7)] § 9–105 of this article. 9
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 10
1, 2026, and Section 1 of this Act shall be applicable to all taxable years beginning after 11
June 30, 2026. 12