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*hb0753*
HOUSE BILL 753
Q1 (6lr0751)
ENROLLED BILL
— Ways and Means/Budget and Taxation —
Introduced by Delegates Lehman, Foley, Guyton, Harrison, Kaiser, Martinez,
Moreno, Pasteur, Ross, Solomon, Taveras, Terrasa, Toles, Vogel,
White Holland, Wims, Woods, and Wu Wu, and Palakovich Carr
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Tax Sales – Homeowner Protections – Revisions 2
FOR the purpose of requiring the State Tax Sale Ombudsman to develop a process to allow 3
a homeowner to designate a family member or another representative of the 4
homeowner to communicate and work with the Ombudsman on the homeowner’s 5
behalf; requiring the dwelling of a homeowner to be withheld from tax sale if the 6
homeowner has a documented terminal illness or medical hardship; increasing the 7
maximum value of a dwelling that a homeowner may reside in and be eligible for the 8
Homeowner Protection Program; req uiring homeowners with terminal illness or 9
medical hardship to receive priority for enrollment in the Homeowner Protection 10
Program; and generally relating to protections for homeowners in tax sale. 11
BY repealing and reenacting, without amendments, 12
2 HOUSE BILL 753
Article – Tax – Property 1
Section 2 –112(b) and (e), 14 –811(i) and (j), 14 –836(a) and (b)(4)(i)3., 14 –883, and 2
14–884 3
Annotated Code of Maryland 4
(2019 Replacement Volume and 2025 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – Tax – Property 7
Section 2–112(d), 14–811(h), and 14–885(a) and (b) 8
Annotated Code of Maryland 9
(2019 Replacement Volume and 2025 Supplement) 10
BY adding to 11
Article – Tax – Property 12
Section 14–888(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
2–112. 19
(b) There is a State Tax Sale Ombudsman in the Department. 20
(d) The Ombudsman shall: 21
(1) assist h omeowners to understand the process for collection of 22
delinquent taxes; 23
(2) actively assist homeowners to apply for tax credits, discount programs, 24
and other public benefits that may assist the homeowners to pay delinquent taxes and 25
improve their financial situation; 26
(3) refer homeowners to legal services, housing counseling, and other social 27
services that may assist homeowners to pay delinquent taxes and improve their financial 28
situation; 29
(4) maintain a website that functions as a clearinghouse fo r information 30
concerning: 31
(i) the process for collection of delinquent taxes; and 32
(ii) services and programs that are available to assist homeowners 33
to pay delinquent taxes and improve their financial situation; [and] 34
HOUSE BILL 753 3
(5) maintain a toll –free telephone number that a homeowner may call to 1
obtain individualized personal assistance with delinquent taxes; AND 2
(6) DEVELOP A PROCESS TO ALLOW A HOMEOWNER TO DESIGNATE A 3
FAMILY MEMBER OR ANO THER REPRESENTATIVE OF THE HOMEOWNER TO 4
COMMUNICATE AND WORK WITH THE OMBUDSMAN ON THE HOMEOWNER’S BEHALF. 5
(e) A county may, by law, establish a County Tax Sale Ombudsman to fulfill all 6
the responsibilities of the State Tax Sale Ombudsman under subsection (d) of this section 7
with respect to homeowners within the county. 8
14–811. 9
(h) (1) In this subsection, “dwelling” and “homeowner” have the meanings 10
stated in § 9–105 of this article. 11
(2) The Mayor and City Council of Baltimore City or the governing body of 12
a county or municipal corporation may withhold from sale a dwelling owned by a 13
homeowner or occupied by an heir of a deceased homeowner who is low–income, at least 65 14
years old, or disabled if the homeowner or heir meets eligibility criteria established by the 15
county or municipal corporation. 16
(3) (I) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR 17
THE GOVERNING BODY OF A COUNTY SHALL WITHHOLD FROM SALE THE DWELLING 18
OF A HOMEOWNER WHO H AS A TERMINAL ILLNES S OR MEDICAL HARDSHI P AS 19
DOCUMENTED BY A PHYSICIAN LICENSED HEALTH CARE PROVIDER WHO HAS 20
TREATED OR EXAMINED THE HOMEOWNER. 21
(II) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR 22
THE GOVERNING BODY O F A COUNTY MAY ADOPT ADDITIONAL METHODS F OR 23
ESTABLISHING A TERMINAL ILLNESS OR MEDICAL HARDSHIP IN ACCORDANCE WITH 24
SUBPARAGRAPH (I) OF THIS SUBSECTION. 25
(II) THE DEPARTMENT AND THE STATE TAX SALE OMBUDSMAN 26
SHALL, IN CONSULTATION WITH THE MARYLAND DEPARTMENT OF HEALTH, DEFINE 27
“TERMINAL ILLNESS” AND “MEDICAL HARDSHIP” BY REGULATION FOR PU RPOSES 28
OF SUBPARAGRAPH (I) OF THIS PARAGRAPH. 29
(III) THE COLLECTOR F OR EACH COUNTY SHALL ESTABLISH A 30
PROCESS FOR A HOMEOWNER, A FAMILY MEMBER OF A HOMEOWNER, OR ANOTHER 31
REPRESENTATIVE OF A HOMEOWNER TO APPLY FOR THE HOMEOWNER’S DWELLING 32
TO BE WITHHELD FROM SALE UNDER THIS PARAGRAPH. 33
4 HOUSE BILL 753
(IV) FOR A HOMEOWNER ’S DWELLING TO CONTINUE TO BE 1
WITHHELD FROM SALE U NDER THIS PARAGRAPH , THE HOMEOWNER , A FAMILY 2
MEMBER OF THE HOMEOW NER, OR ANOTHER REPRESENT ATIVE OF THE 3
HOMEOWNER SHALL REAPPLY TO THE COLLECTOR IN THE SECOND YEAR AFTER THE 4
HOMEOWNER’S DWELLING WAS FIRST WITHHELD FROM SAL E UNDER THIS 5
PARAGRAPH AND IN EVERY SECOND YEAR THEREAFTER. 6
(i) The collector shall withhold from sale the dwelling of a homeowner who is 7
enrolled in the Homeowner Protection Program established under Part VII of this subtitle. 8
(j) (1) The Mayor and City Council of Baltimore City or the governing body of 9
a county shall establish a registry for interested parties or the Tax Sale Ombudsman to 10
designate a property to be withheld from tax sale in accordance with this section. 11
(2) On request of the Mayo r and City Council of Baltimore City or the 12
governing body of a county, the Department shall provide assistance in creating and 13
maintaining the registry required under paragraph (1) of this subsection. 14
14–836. 15
(a) The plaintiff in any action to foreclos e the right of redemption shall be the 16
holder of the certificate of sale. 17
(b) (4) (i) Notwithstanding the provisions of paragraph (3) of this 18
subsection, the plaintiff shall send written notice of the proceeding to: 19
3. if the subject property is own er–occupied, the State Tax 20
Sale Ombudsman. 21
14–883. 22
(a) In this part the following words have the meanings indicated. 23
(b) “Combined income” means the combined Maryland adjusted gross income of 24
all individuals who actually reside in a dwelling except an individual who: 25
(1) is a dependent of the homeowner under § 152 of the Internal Revenue 26
Code; or 27
(2) pays a reasonable amount for rent or room and board. 28
(c) “Dwelling” has the meaning stated in § 9–105 of this article. 29
(d) “Homeowner” means: 30
(1) a homeowner as defined in § 9–105 of this article; or 31
HOUSE BILL 753 5
(2) if a homeowner as defined in § 9–105 of this article is deceased: 1
(i) the estate of the homeowner; 2
(ii) the personal representative of the homeowner; or 3
(iii) an heir or legatee of the homeowner who is entitled to inherit the 4
homeowner’s dwelling. 5
(e) “Ombudsman” means the State Tax Sale Ombudsman established under § 6
2–112 of this article. 7
(f) “Program” means the Homeowner Protection Program established under this 8
part. 9
(g) “Tax” has the meaning stated in § 14–801 of this subtitle. 10
14–884. 11
(a) There is a Homeowner Protection Program administered by the Ombudsman 12
in the Department. 13
(b) The purpose of the Program is to divert vulnerable homeowners from the 14
private tax lien sale process under Part III of this subtitle into an alternative program with 15
the primary purpose of: 16
(1) minimizing tax collection costs to homeowners; 17
(2) assisting homeowners to pay their taxes; and 18
(3) allowing homeowners to remain in their homes. 19
14–885. 20
(a) (1) To be eligible for the Program a homeowner shall: 21
(i) reside in a dwelling that has an assessed value of [$300,000] 22
$450,000 or less; and 23
(ii) have a combined income of $60,000 or less. 24
(2) The Department may establish, by regulation, additional eligibility 25
criteria for enrollment in the Program. 26
(b) (1) The Department shall establish, by regulation, a process to: 27
6 HOUSE BILL 753
(1) (I) give priority for enrollment in the Program to homeowners who 1
are: 2
(i) 1. at least 60 years old; [or] 3
(ii) 2. currently receiving disability benefits from the federal 4
Social Security Disability Insurance program or the federal Supplemental Security Income 5
program; OR 6
(III) 3. EXPERIENCING A DOCUM ENTED TERMINAL ILLNE SS 7
OR MEDICAL HARDSHIP; and 8
(2) (II) ensure that homeowners are enrolled in the Program who reside 9
in each county in the State. 10
(2) THE REGULATION ESTABLISHED UNDER PARAGRAPH (1) OF THIS 11
SUBSECTION SHALL INCLUDE THE DEFINITI ONS OF “TERMINAL ILLNESS ” AND 12
“MEDICAL HARDSHIP” ADOPTED UNDER § 14–811 OF THIS SUBTITLE. 13
14–888. 14
(E) THE OMBUDSMAN SHALL DEVEL OP A PROCESS TO ALLO W A 15
HOMEOWNER ENROLLED I N THE PROGRAM TO DESIGNATE A FAMILY MEMBER OR 16
ANOTHER REPRESENTATIVE OF TH E HOMEOWNER TO COMMU NICATE AND WORK 17
WITH THE OMBUDSMAN ON THE HOMEOWNER’S BEHALF. 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
October 1, 2026. 20
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.