Property Taxes - Tax Sales, Legacy Protection Program, and Tax Credits

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.
*hb1148*

HOUSE BILL 1148
Q1 6lr2205
CF SB 765
By: Delegates Kaiser, Kaufman, and Roberts
Introduced and read first time: February 11, 2026
Assigned to: Ways and Means
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 3, 2026

CHAPTER ______

AN ACT concerning 1

Property Taxes – Tax Sales, Heirs Legacy Protection Program, and Tax Credits 2

FOR the purpose of altering eligibility for certain services and programs offered by the 3
State Tax Sale Ombudsman to include certain persons acting on behalf of a deceased 4
homeowner or an heir or a legatee of a deceased homeowner; establishing an Heirs 5
a Legacy Protection Program administered by the Ombudsman for the purpose of 6
allowing heirs who inherit a dwelling to become the record title holder of the 7
dwelling, preventing tax sales of dwellings inherited by heirs, and allowing heirs to 8
remain in their homes; requiring the Ombudsman to conduct certain outreach, 9
disseminate certain information, and provide certain grants to carry out the Heirs 10
Legacy Protection Program; establishing the Heirs Legacy Protection Fund financed 11
by the State and county governm ents to provide funding for the Heirs Legacy 12
Protection Program; requiring interest earnings to be credited to the Fund; altering 13
eligibility for the homeowners’ and homestead tax credits to include certain heirs 14
who are not shown as the record title holde r of a dwelling in the land records of the 15
county for a certain period of time if certain requirements are met; and generally 16
relating to protecting heirs from property tax sales, the Heirs Legacy Protection 17
Program, and the State property tax credit programs. 18

BY repealing and reenacting, without amendments, 19
Article – State Finance and Procurement 20
Section 6–226(a)(2)(i) and (ii) 21
Annotated Code of Maryland 22
(2021 Replacement Volume and 2025 Supplement) 23

2 HOUSE BILL 1148

BY repealing and reenacting, with amendments, 1
Article – State Finance and Procurement 2
Section 6–226(a)(2)(iii)212. and 213. 3
Annotated Code of Maryland 4
(2021 Replacement Volume and 2025 Supplement) 5

BY adding to 6
Article – State Finance and Procurement 7
Section 6–226(a)(2)(iii)214. 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2025 Supplement) 10

BY repealing and reenacting, with amendments, 11
Article – Tax – Property 12
Section 2–112, 9–104(a)(9) through (12), (f), (l), and (u)(1) and 9 –105(a)(7) through 13
(9), (d)(6), and (g) 14
Annotated Code of Maryland 15
(2019 Replacement Volume and 2025 Supplement) 16

BY adding to 17
Article – Tax – Property 18
Section 2–113, 9–104(a)(9), and 9–105(a)(7) 19
Annotated Code of Maryland 20
(2019 Replacement Volume and 2025 Supplement) 21

BY repealing and reenacting, without amendments, 22
Article – Tax – Property 23
Section 9–104(a)(1) and 9–105(a)(1) and (d)(7) and (8) 24
Annotated Code of Maryland 25
(2019 Replacement Volume and 2025 Supplement) 26

BY repealing 27
Article – Tax – Property 28
Section 9–104(a)(13) 29
Annotated Code of Maryland 30
(2019 Replacement Volume and 2025 Supplement) 31

BY repealing and reenacting, with amendments, 32
Chapter 717 of the Acts of the General Assembly of 2024, as amended by Chapters 33
237, 409, and 410 of the Acts of the General Assembly of 2025 34
Section 8(87) and (88) 35

BY adding to 36
Chapter 717 of the Acts of the General Assembly of 2024, as amended by Chapters 37
237, 409, and 410 of the Acts of the General Assembly of 2025 38
Section 8(89) 39

HOUSE BILL 1148 3

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2

Article – State Finance and Procurement 3

6–226. 4

(a) (2) (i) This paragraph does not apply in fiscal years 2024 through 2028. 5

(ii) Notwithstanding any other provision of law, and unless 6
inconsistent with a federal law, grant agreement, or other federal requirement or with the 7
terms of a gift or settlement agreement, net interest on all State money allocated by the 8
State Treasurer under this section to special funds or accounts, and otherwise entitled to 9
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 10
Fund of the State. 11

(iii) The provisions of subparagraph (ii) of this paragraph do not 12
apply to the following funds: 13

212. the Department of Social and Economic Mobility Special 14
Fund; [and] 15

213. the Population Health Improvement Fund; AND 16

214. THE HEIRS LEGACY PROTECTION FUND. 17

Article – Tax – Property 18

2–112. 19

(a) (1) In this section the following words have the meanings indicated. 20

(2) (I) “Homeowner” has the meaning stated in § 9–105 of this article. 21

(II) “HOMEOWNER” INCLUDES: 22

1. THE ESTATE OF A DECEASED HOMEOWNER; 23

2. THE PERSONAL REPRESE NTATIVE OF A DECEASE D 24
HOMEOWNER; OR 25

3. AN INDIVIDUA L WHO IS AN HEIR OR LEGATEE OF A 26
DECEASED HOMEOWNER W HO IS ENTITLED TO IN HERIT THE DECEASED 27
HOMEOWNER’S DWELLING. 28

(3) “Tax” has the meaning stated in § 14–801 of this article. 29
4 HOUSE BILL 1148

(b) There is a State Tax Sale Ombudsman in the Department. 1

(c) The Ombudsman: 2

(1) shall be appointed by the Director; 3

(2) shall be in the management service of the State Personnel Management 4
System; and 5

(3) may be removed from office only after a hearing before the Department 6
and a finding of incompetency or other good cause. 7

(d) The Ombudsman shall: 8

(1) assist homeowners to understand the process for collection of 9
delinquent taxes; 10

(2) actively assist homeowners to apply for tax credits, discount programs, 11
and other public benefits that may assist the homeowners to pay delinquent taxes and 12
improve their financial situation; 13

(3) refer homeowners to legal services, housing counseling, and other social 14
services that may assist homeowners to pay delinquent taxes and improve their financial 15
situation; 16

(4) maintain a website that functions as a clearinghouse for information 17
concerning: 18

(i) the process for collection of delinquent taxes; and 19

(ii) services and programs that are available to assist homeowners 20
to pay delinquent taxes and improve their financial situation; and 21

(5) maintain a toll –free telephone number that a homeowner may call to 22
obtain individualized personal assistance with delinquent taxes. 23

(e) A county may, by law, establish a County Tax Sale Ombudsman to fulfill all 24
the responsibilities of the State Tax Sale Ombudsman under subsection (d) of this section 25
with respect to homeowners within the county. 26

(f) (1) The Ombudsman shall contract with a vendor to operate an installment 27
payment program for the payment of taxes in which any homeowner may enroll. 28

(2) The installment payment program shall allow a homeowner to: 29

(i) make advance payments of taxes; 30
HOUSE BILL 1148 5

(ii) make payments of taxes currently due; or 1

(iii) make payments of taxes in arrears. 2

(3) (i) A homeowner whose dwelling is subject to a deed of trust, a 3
mortgage, or any other encumbrance that includes the escrowing of tax payments may not 4
enroll in the installment payment program for the advance payment of taxes. 5

(ii) An advance payment of taxes is calculated by applying the 6
current property tax rate to the assessment of the homeowner’s property for the prior year. 7

(iii) If the advance payment is different than the taxes due as finally 8
determined, the vendor shall: 9

1. bill the homeowner for the unpaid balance; or 10

2. refund any excess tax paid. 11

(iv) The failure by a homeowner to make an advance payment under 12
the installment payment program may not be considered to be a failure to pay the property 13
tax when due except as provided under Title 10, Subtitle 1 of this article. 14

(4) The Ombudsman shall notify the collector to whom the taxes are owed 15
when a homeowner enters into an installment payment plan under this subsection. 16

(5) If a homeowner is in compliance with the terms of an installment 17
payment plan, the collector may not take action under Title 14, Subtitle 8 of this article to 18
collect any property taxes in arrears that are included in the installment payment plan. 19

(6) A homeowner is not in compliance with the terms of an installment 20
payment plan if the homeowner fails to make a payment for a period of 90 days after the 21
date the payment is due, or a longer period determined by the Ombudsman. 22

(7) If a homeowner is not in compliance with the terms of an installment 23
payment plan: 24

(i) the Ombudsman: 25

1. may terminate the installment payment plan; and 26

2. shall notify the collector to whom the taxes are owed; and 27

(ii) the collector may take action under Title 14, Subtitle 8 of this 28
article to collect any property taxes in arrears that were included in the installment 29
payment plan. 30

6 HOUSE BILL 1148

(8) The cost of the contract with the vendor to operate the installment 1
payment program shall be paid entirely by reasonable fees imposed on homeowners 2
enrolled in the program. 3

2–113. 4

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 5
INDICATED. 6

(2) “DWELLING” HAS THE MEANING STAT ED IN § 9–105 OF THIS 7
ARTICLE. 8

(3) “HEIR” MEANS AN INDIVIDUAL WHO IS AN HEIR OR A LEGATEE OF 9
A DECEASED HOMEOWNER WHO IS ENTITLED TO I NHERIT THE D ECEASED 10
HOMEOWNER’S DWELLING. 11

(4) “HOMEOWNER” HAS THE MEANING STAT ED IN § 9–105 OF THIS 12
ARTICLE. 13

(5) “OMBUDSMAN” MEANS THE STATE TAX SALE OMBUDSMAN 14
ESTABLISHED UNDER § 2–112 OF THIS SUBTITLE. 15

(6) “PROGRAM” MEANS THE HEIRS LEGACY PROTECTION PROGRAM 16
ESTABLISHED UNDER THIS SECTION. 17

(7) “RECORD TITLE HOLDER” MEANS THE PERSON WHO IS LISTED AS 18
THE OWNER OF A DWELLING ON A DEED RECORDED IN THE LAND RECORDS OF THE 19
COUNTY WHERE THE DWELLING IS LOCATED. 20

(B) (1) THERE IS AN HEIRS A LEGACY PROTECTION PROGRAM 21
ADMINISTERED BY THE OMBUDSMAN IN THE DEPARTMENT. 22

(2) THE PURPOSE OF THE PROGRAM IS TO: 23

(I) ALLOW HEIRS WHO INHE RIT A DWELLING TO BE COME THE 24
RECORD TITLE HOLDER OF THE DWELLING; 25

(II) PREVENT TAX SALES OF DWELLINGS INHERITED BY HEIRS; 26
AND 27

(III) ALLOW HEIRS TO REMAIN IN THEIR HOMES. 28

(C) WHEN THE DEPARTMENT RECEIVES I NFORMATION THAT A 29
HOMEOWNER WHO WAS GRANTED THE CREDIT UNDER § 9–104 OR § 9–105 OF THIS 30
HOUSE BILL 1148 7

ARTICLE HAS DIED , THE OMBUDSMAN SHALL SEND A NOTICE BY MAIL TO THE 1
HOMEOWNER’S FORMER DWELLING NOTIFYING ANY HEIR THAT MAY BE RESIDING IN 2
THE DWELLING: 3

(1) THAT THE HEIR MAY BE ELIGIBLE FOR THE CRE DITS UNDER § 4
9–104 OR § 9–105 OF THIS ARTICLE; 5

(2) HOW TO APPLY FOR THE CREDITS UNDER § 9–104 OR § 9–105 OF 6
THIS ARTICLE BY COMPLETIN G AN APPLICATION AND FILING AN AFFIDAVIT OF 7
HEIRSHIP; 8

(3) WHY IT IS IMPORTANT FOR THE HEIR TO BECO ME THE RECORD 9
TITLE HOLDER OF THE DWELLING; 10

(4) THAT THE HEIR SHOULD CONTACT THE OMBUDSMAN FOR 11
INFORMATION ABOUT HO W TO BECOME THE RECORD TITLE HOLDER OF THE 12
DWELLING; AND 13

(5) THAT FREE LEGAL SERVICES AND GRANTS MAY BE AVAILABLE TO 14
ASSIST THE HEIR TO BECOME THE RECORD TITLE HOLDER OF THE DWELLING. 15

(D) IN COLLABORATION WITH THE REGISTERS OF WILLS, THE OMBUDSMAN 16
SHALL: 17

(1) DEVELOP A BRIEF, EASY–TO–UNDERSTAND, STEP–BY–STEP GUIDE 18
TO PROBATING AN ESTA TE AND BECOMING THE RECORD TITLE HOLDER OF A 19
DWELLING; AND 20

(2) POST THE GUIDE DEVEL OPED UNDER ITEM (1) OF THIS 21
SUBSECTION ON THE OMBUDSMAN’S WEBSITE AND PROVID E THE GUIDE TO HE IRS 22
WHO CONTACT THE OMBUDSMAN. 23

(E) (1) THE OMBUDSMAN SHALL PROVIDE GRANTS TO QUALIFIED LEGAL 24
SERVICES ORGANIZATIO NS FOR THE PURPOSE O F PROVIDING FREE LEG AL 25
ASSISTANCE TO HEIRS TO NAVIGATE THE PROB ATE PROCESS AND BECO ME THE 26
RECORD TITLE HOLDER OF THEIR DWELLINGS. 27

(2) THE OMBUDSMAN SHALL DETERMINE: 28

(I) THE LEGAL SERVICES ORGANIZATIONS TO RECEIVE GRANTS 29
UNDER PARAGRAPH (1) OF THIS SUBSECTION; 30

8 HOUSE BILL 1148

(II) THE AMOUNT OF GRANTS TO INDIVIDUAL LEGAL SERVICES 1
ORGANIZATIONS; AND 2

(III) THE CUMULATIVE AMOUNT OF GRANTS TO AWAR D IN EACH 3
FISCAL YEAR. 4

(3) AN HEIR MAY QUALIFY T O RECEIVE FREE LEGAL ASSISTANCE 5
FROM A LEGAL SERVICE S ORGANIZATION THAT RECEIVES A GRANT UND ER 6
PARAGRAPH (1) OF THIS SUBSECTION I F THE HEIR ’S DWELLING IS VALUED AT 7
$350,000 $450,000 OR LESS, AS SHOWN IN THE RECORDS OF THE DEPARTMENT. 8

(F) (1) THE OMBUDSMAN SHALL PROVIDE GRANTS DIRECTLY T O HEIRS 9
TO PAY ALL OR PART O F PROBATE FEES UNDER § 2–206 OF THE ESTATES AND 10
TRUSTS ARTICLE OR, INHERITANCE TAXES UN DER TITLE 7, SUBTITLE 2 OF THE 11
TAX – GENERAL ARTICLE, OR ANY OTHER TAX OR FEE THAT AN HEIR MUST PAY TO 12
COMPLETE THE PROBATE PROCESS AND BECOME T HE RECORD TITLE HOLD ER OF 13
THE HEIR’S DWELLING. 14

(2) AN HEIR MAY QUALIFY T O RECEIVE A GRANT IF THE HEIR ’S 15
DWELLING IS VALUED AT $350,000 $450,000 OR LESS, AS SHOWN IN THE RECORDS 16
OF THE DEPARTMENT. 17

(3) THE OMBUDSMAN SHALL DETERMINE: 18

(I) THE INDIVIDUAL HEIRS TO RECEIVE GRANTS UN DER 19
PARAGRAPH (1) OF THIS SUBSECTION; 20

(II) THE AMOUNT AND PURPO SE OF GRANTS TO INDI VIDUAL 21
HEIRS; AND 22

(III) THE CUMULATIVE AMOUNT OF GRANTS TO BE AWARDED TO 23
ALL HEIRS IN EACH FISCAL YEAR. 24

(4) THE OMBUDSMAN MAY ESTABLI SH ADDITIONAL ELIGIB ILITY 25
CRITERIA FOR GRANTS THAT PRIORITIZE LOW –INCOME, ELDERLY, AND DISABLED 26
HEIRS. 27

(G) THE OMBUDSMAN SHALL PROVI DE THE NAME OF EACH HEIR WHO 28
CONTACTS THE OMBUDSMAN AND THE ADDRESS OF THE HEIR’S DWELLING TO THE 29
COUNTY WHERE THE HEI R’S DWELLING IS LOCATE D FOR INCLUSION ON T HE 30
COUNTY’S REGISTRY OF PROPER TIES TO BE WITHHELD FROM TAX SALE UNDER § 31
14–811(J) OF THIS ARTICLE. 32

HOUSE BILL 1148 9

(H) (1) IN THIS SUBSECTION , “FUND” MEANS THE HEIRS LEGACY 1
PROTECTION FUND. 2

(2) THERE IS AN HEIRS A LEGACY PROTECTION FUND. 3

(3) THE PURPOSE OF THE FUND IS TO FINANCE THE PROGRAM. 4

(4) THE DEPARTMENT SHALL ADMINISTER THE FUND. 5

(5) (I) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 6
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 7

(II) THE STATE TREASURER SHALL HOLD THE FUND 8
SEPARATELY, AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 9

(6) THE FUND CONSISTS OF: 10

(I) MONEY APPROPRIATED I N THE STATE BUDGET TO THE 11
FUND; 12

(II) MONEY PAID BY COUNTY GOVERNMENTS UNDER 13
PARAGRAPH (8) OF THIS SUBSECTION; 14

(III) INTEREST EARNINGS; AND 15

(IV) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 16
FOR THE BENEFIT OF THE FUND. 17

(7) FOR EACH FISCAL YEAR, THE GOVERNOR SHALL INCLUDE IN THE 18
ANNUAL BUDGET BILL A N APPROPRIATION OF $250,000 OF THE INTEREST ON 19
OVERDUE STATE PROPERTY TAX TO THE FUND. 20

(8) (I) FOR EACH FISCAL YEAR , COUNTY GOVERNMENTS S HALL 21
COLLECTIVELY PAY $500,000 TO THE FUND. 22

(II) THE AMOUNT REQUIRED T O BE PAID UNDER 23
SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL BE ALLOCATED AMO NG THE 24
COUNTIES BASED ON THE NUMBER OF REAL PROPERTY ACCOUNTS IN EACH COUNTY 25
AS A PERCENTAGE OF T HE TOTAL NUMBER O F REAL PROPERTY ACCO UNTS 26
STATEWIDE AS OF JULY 1 OF THE PRECEDING FISCAL YEAR. 27

10 HOUSE BILL 1148

(III) THE AMOUNT PAID BY EA CH COUNTY UNDER THIS 1
PARAGRAPH SHALL BE DERIVED FROM INTEREST ON OVERDUE COUNTY PROPERTY 2
TAX. 3

(IV) EACH COUNTY SHALL REM IT TO THE DEPARTMENT THE 4
COUNTY’S SHARE OF THE AMOUN T REQUIRED UNDER SUB PARAGRAPH (I) OF THIS 5
PARAGRAPH ON OR BEFORE THE FIRST DAY OF EACH FISCAL YEAR. 6

(9) (I) THE FUND MAY BE USED ONLY FOR ANY EXPENSES 7
ASSOCIATED WITH THE PROGRAM. 8

(II) THE FUND MAY NOT BE USED FOR ANY EXPENSES OF THE 9
OFFICE OF THE STATE TAX SALE OMBUDSMAN THAT ARE NOT DIRECTLY RELATED 10
TO THE PROGRAM. 11

(10) (I) THE STATE TREASURER SHALL INVEST THE MONEY OF THE 12
FUND IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. 13

(II) ANY INTEREST EARNINGS OF THE FUND SHALL BE 14
CREDITED TO THE FUND. 15

(11) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN 16
ACCORDANCE WITH THE STATE BUDGET. 17

(12) THE FUND IS THE EXCLUSIVE SOURCE OF FUNDING FO R THE 18
PROGRAM. 19

Chapter 717 of the Acts of 2024, as amended by Chapters 237, 409, and 410 of the 20
Acts of 2025 21

SECTION 8. AND BE IT FURTHER ENACTED, That, notwithstanding any other 22
provision of law, and unless inconsistent with a federal law, grant agreement, or other 23
federal requirement, or with the terms of a gift or sett lement agreement, for fiscal years 24
2024 through 2028, net interest on all State money allocated by the State Treasurer under 25
§ 6–226 of the State Finance and Procurement Article to special funds or accounts, and 26
otherwise entitled to receive interest earni ngs, as accounted for by the Comptroller, shall 27
accrue to the General Fund of the State, with the exception of the following funds: 28

(87) the Academic Excellence Fund; [and] 29

(88) the Abandoned and Neglected Cemeteries Fund; AND 30

(89) THE HEIRS LEGACY PROTECTION FUND. 31

HOUSE BILL 1148 11

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 1
as follows: 2

Article – Tax – Property 3

9–104. 4

(a) (1) In this section the following words have the meanings indicated. 5

(9) “HEIR” MEANS AN INDIVIDUAL WHO IS AN HEIR OR A LEGATEE OF 6
A DECEASED HOMEOWNER WHO IS ENTITLED TO I NHERIT THE DECEASED 7
HOMEOWNER’S DWELLING. 8

[(9)] (10) (i) “Homeowner” means an individual who: 9

1. on July 1 of the taxable year for which the tax credit is to 10
be allowed: 11

A. actually resides in a dwelling in which the individual has 12
a legal interest; or 13

B. under a court order or separation agreement, permits a 14
spouse, a former spouse, or a child of the individual’s family to reside without payment of 15
rent in a dwelling in which the individual has a legal interest; or 16

2. A. is a home purchaser; and 17

B. actually resides in a dwelling in which the individual has 18
a legal interest, whether or not the individual resides in the dwelling on July 1 of the 19
taxable year for which the tax credit is sought. 20

(ii) “Homeowner” includes a beneficiary of a trust described in 42 21
U.S.C. § 1396p(d)(4), or a trust established for the benefit of an individual with a disability 22
by an individual other than the beneficiary and that is funded with assets that were never 23
owned or controlled by the beneficiary, if, on July 1 of the taxable year for which the tax 24
credit is to be allowed, the beneficiary of the trust is an individual who actually resides in 25
the dwelling. 26

[(10)] (11) “Home purchaser” means an individual who purchases a 27
dwelling in the taxable year for which the tax credit under this section is sought. 28

[(11)] (12) “Legal interest” includes an interest in a dwelling: 29

(i) as sole owner; 30

(ii) as a joint tenant; 31
12 HOUSE BILL 1148

(iii) as a tenant in common; 1

(iv) as a tenant by the entireties; 2

(v) through membership in a cooperative; 3

(vi) under a land installment contract, as defined in § 10 –101 of the 4
Real Property Article; 5

(vii) as a holder of a life estate; OR 6

(viii) under a continuing care contract for an independent living unit 7
at a continuing care facility for the aged, which means a nontransferable agreement 8
between a continuing care facility for the aged as defined in § 7 –206 of this article and an 9
occupant of an independent living unit, which agreement provides that the occupant may 10
reside in the unit until termination under the terms of the contract[; or 11

(ix) as a surviving family member who stands to inherit the dwelling 12
of a deceased homeowner under the terms of: 13

1. the deceased homeowner’s will or trust or a nonprobate 14
instrument of writing; or 15

2. under the laws of intestate succession]. 16

[(12)] (13) “Net worth” means the sum of the current market value of all 17
assets, less any outstanding liability. 18

[(13) “Surviving family member” means an individual related to a deceased 19
homeowner by blood, adoption, or marriage.] 20

(f) (1) A homeowner who meets the requirements of this section shall be 21
granted the property tax credit under this section against the property tax imposed on the 22
real property of the dwelling. 23

(2) (I) AN HEIR WHO IS NOT SH OWN AS THE RECORD TI TLE 24
HOLDER OF A DWELLING IN THE LAND RECORDS OF THE COUNTY SHALL BE 25
GRANTED THE PROPERTY TAX CREDIT UNDER THIS SECTION IF THE HEIR: 26

1. FILES AN APPLICATION IN ACCORDANCE WITH 27
SUBSECTION (D)(6) (L) OF THIS SECTION; 28

2. MEETS THE ELIGIBILIT Y REQUIREMENTS FOR A 29
HOMEOWNER UNDER THIS SECTION; AND 30

HOUSE BILL 1148 13

3. MEETS ALL THE OTHER REQUIREMENTS OF THIS 1
SECTION. 2

(II) AN HEIR WHO IS NOT SH OWN AS THE RECORD TI TLE 3
HOLDER OF THE DWELLI NG IN THE LAND RECOR DS OF THE COUNTY MAY BE 4
GRANTED THE TAX CRED IT UNDER THIS SECTIO N FOR A MAXIMUM OF 3 TAXABLE 5
YEARS. 6

(III) AFTER RECEIVING THE T AX CREDIT UNDER THIS SECTION 7
FOR 3 TAXABLE YEARS , AN HEIR MAY RECEIVE THE TAX CREDIT UNDER THIS 8
SECTION ONLY IF THE HEIR IS SHOWN AS THE RECORD TITLE HOLDER OF THE 9
DWELLING IN THE LAND RECORDS OF THE COUNTY. 10

(l) (1) On or before the February 15 that precedes the taxable year in which 11
the property tax credit under this section is sought, the Department shall make available 12
that year’s property tax credit application form. 13

(2) (i) Except as provided in subsections (m), (u), and (v) of this section, 14
on or before October 1 of the taxable year in which the property tax credit under this section 15
is sought, a homeowner may apply to the Department for a property tax credit under this 16
section. 17

(ii) The application shall be made on the form that the Department 18
provides. 19

(3) (i) For good cause, the Department may accept an application after 20
October 1 but on or before October 31 of the taxable year. 21

(ii) The Department shall notify the homeowner in writing of its 22
acceptance or rejection of a late application. 23

(4) The homeowner shall state under oath that the facts in the application 24
are true. 25

(5) (i) Except as provided in subparagraph (ii) of this paragraph, to 26
substantiate the application, the applicant may be required to provide a copy of an income 27
tax return, or other evidence detailing gross income or net worth. 28

(ii) An applicant who is required to substantiate an application 29
under subparagraph (i) of this paragraph may, under penalties of perjury, attest to gross 30
income in lieu of providing an income tax return if the applicant w as not required to and 31
did not file an income tax return. 32

(6) TO APPLY FOR THE CRED IT UNDER THIS SECTIO N, AN HEIR 33
SHALL: 34

14 HOUSE BILL 1148

(I) COMPLETE THE APPLICATION UNDER THIS SUBSECTION; 1

(II) COMPLETE AN AFFIDAVIT UNDER OATH ON THE FORM THE 2
DEPARTMENT PROVI DES ATTESTING THAT T HE INDIVIDUAL IS AN HEIR OR A 3
LEGATEE OF A DECEASE D HOMEOWNER WHO IS E NTITLED TO INHERIT T HE 4
DECEASED HOMEOWNER’S DWELLING; AND 5

(III) ATTACH TO THE APPLIC ATION A COPY OF THE DEATH 6
CERTIFICATE OF THE D ECEASED HOMEOWNER FROM WHOM THE HEIR INHERITED 7
THE DWELLING. 8

(u) (1) Under the conditions set forth in this subsection, the Department may 9
accept an application from a homeowner within: 10

(i) 1 year after April 15 of the taxable year for which the property 11
tax credit under this section is sought, if the homeowner: 12

1. is applying for the first time; or 13

2. has filed an application on or before October 1 in each of 14
the 3 taxable years immediately preceding the taxable year for which the credit is sought; 15
or 16

(ii) 3 years a fter April 15 of the taxable year for which a credit is 17
sought, if the homeowner is: 18

1. A. at least 70 years old as of the taxable year for which 19
a credit is sought; [or] 20

B. enrolled in the Homeowner Protection Program 21
established under Title 14, Subtitle 8, Part VII of this article; OR 22

C. AN HEIR; and 23

2. was eligible for the credit under this section for the taxable 24
year for which the credit is sought. 25

9–105. 26

(a) (1) In this section the following words have the meanings indicated. 27

(7) “HEIR” MEANS AN INDIVIDUAL WHO IS AN HEIR OR A LEGATEE OF 28
A DECEASED HOMEOWNER WHO IS ENTITLED TO I NHERIT THE DECEASED 29
HOMEOWNER’S DWELLING. 30

HOUSE BILL 1148 15

[(7)] (8) “Homeowner” means an individual who has a legal interest in a 1
dwelling or who is an active member of an agricultural ownership entity that has a legal 2
interest in a dwelling. 3

[(8)] (9) “Legal interest” means an interest in a dwelling: 4

(i) as a sole owner; 5

(ii) as a joint tenant; 6

(iii) as a tenant in common; 7

(iv) as a tenant by the entireties; 8

(v) through membership in a cooperative; 9

(vi) under a land installment contract, as defined in § 10 –101 of the 10
Real Property Article; 11

(vii) as a holder of a life estate; or 12

(viii) as a settlor, grantor, or beneficiary of a trust if: 13

1. the settlor, grantor, or beneficiary of the trust does not pay 14
rent or other remuneration to reside in the dwelling; and 15

2. legal title to the dwelling is held in the name of the trust 16
or in the names of the trustees for the trust. 17

[(9)] (10) “Taxable assessment” means the assessment on which the 18
property tax rate was imposed in the preceding taxable year, adjusted by the phased –in 19
assessment increase resulting from a revaluation under § 8–104(c)(1)(iii) of this article, less 20
the amount of any assessment on which a property tax credit under this section is 21
authorized. 22

(d) (6) (i) Except as provided under paragraph (7) of this subsection, to 23
qualify for the credit un der this section, a homeowner shall submit an application for the 24
credit to the Department as provided in this paragraph. 25

(ii) The application shall: 26

1. be made on the form that the Department provides; 27

2. provide the information required by the form; 28

3. include a statement by the homeowner under oath that the 29
facts stated in the application are true, correct, and complete; and 30
16 HOUSE BILL 1148

4. except as provided in subparagraph (iii) of this paragraph, 1
be filed on or before the May 1 preceding th e first taxable year for which the property tax 2
credit under this section is to be allowed. 3

(iii) For a dwelling that was last transferred for consideration to new 4
ownership on or before December 31, 2007, an application shall be filed with the 5
Department on or before December 30, 2013, or the Department may not authorize and the 6
State, county, and municipal corporation may not grant the property tax credit under this 7
section: 8

1. for the taxable year beginning July 1, 2014; and 9

2. for a taxable year beginning after June 30, 2015, unless an 10
application is filed as required under subparagraphs (i) and (ii) of this paragraph. 11

(IV) TO APPLY FOR THE CREDIT UNDER THIS SECTION, AN HEIR 12
SHALL: 13

1. COMPLETE THE APPLICA TION UNDER THIS 14
PARAGRAPH; 15

2. COMPLETE AN AFFIDAVIT UNDER OATH ON THE FORM 16
THE DEPARTMENT PROVIDES A TTESTING THAT THE IN DIVIDUAL IS AN HEIR OR A 17
LEGATEE OF A DECEASE D HOMEOWNER WHO IS E NTITLED TO INHERIT T HE 18
DECEASED HOMEOWNER’S DWELLING; AND 19

3. ATTACH TO THE APPLICATION A COPY OF THE DEATH 20
CERTIFICATE OF THE D ECEASED HOMEOWNER FROM WHOM THE HEIR INH ERITED 21
THE DWELLING. 22

[(iv)] (V) If a dwelling previously received a credit under this section 23
and failed to qualify for 1 taxable year because of a failure to file the application required 24
under this paragraph, the Department: 25

1. shall grant the credit for the dwelling for the next 26
following taxable year on the timely filing of the application by the same homeowner who 27
previously received the credit; and 28

2. shall calculate the prior year’s taxable assessment for the 29
dwelling as if the credit had not been lost for the 1 intervening taxable year. 30

[(v)] (VI) The Department shall provide a homeowner the option to 31
submit the application required under this p aragraph electronically on the Department’s 32
website. 33

HOUSE BILL 1148 17

(7) If a homeowner submits an application to the Department under this 1
section and the Department determines that the homeowner was eligible for the credit in 2
the prior taxable year but failed to file an application for the credit as required under this 3
subsection: 4

(i) the homeowner shall be retroactively qualified for the 5
Homestead Property Tax Credit Program for the prior taxable year; and 6

(ii) the Department shall calculate the prior year’s taxable 7
assessment as if the credit had been granted for the prior taxable year. 8

(8) (i) This paragraph shall be interpreted broadly to apply to any 9
homeowner who: 10

1. is at least 70 years of age; 11

2. was eligible for the credit in the prior taxable year but 12
failed to file an application for the credit; and 13

3. applies for a credit for the current taxable year. 14

(ii) For homeowners that meet the criteria under subparagraph (i) of 15
this paragraph, the Department shall calculate the current year’s taxable assessment as if 16
the credit had been granted for the prior taxable year. 17

(iii) A homeowner who meets the criteria under subparagraph (i) of 18
this paragraph is not due a reimbursement of property taxes paid in prior taxable years. 19

(g) (1) A homeowner who meets the requirements of this section shall be 20
granted the property tax credit under this section against the State, county, and municipal 21
corporation property tax and any property tax imposed for a bicounty commission imposed 22
on the real property of the dwelling. 23

(2) (I) AN HEIR WHO IS NOT SH OWN AS THE RECORD TI TLE 24
HOLDER OF A DWELLING IN THE LAND RECORDS OF THE COUNTY SHALL BE 25
GRANTED THE PROPERTY TAX CREDIT UNDER THIS SECTION IF THE HEIR: 26

1. FILES AN APPLICATION IN ACCORDANCE WITH 27
SUBSECTION (D)(6) OF THIS SECTION; 28

2. MEETS THE ELIGIBILIT Y REQUIREMENTS FOR A 29
HOMEOWNER UNDER THIS SECTION; AND 30

3. MEETS ALL THE OTHER REQUIREMENTS OF THIS 31
SECTION. 32

18 HOUSE BILL 1148

(II) AN HEIR WHO IS NOT SH OWN AS THE RECORD TI TLE 1
HOLDER O F THE DWELLING IN TH E LAND RECORDS OF TH E COUNTY MAY BE 2
GRANTED THE TAX CRED IT UNDER THIS SECTIO N FOR A MAXIMUM OF 3 TAXABLE 3
YEARS. 4

(III) AFTER RECEIVING THE T AX CREDIT UNDER THIS SECTION 5
FOR 3 TAXABLE YEARS , AN HEIR MAY RECEIVE THE TAX CREDIT UNDER THIS 6
SECTION ONLY IF THE HEIR IS SHOWN AS THE RECORD TITLE HOLDER OF THE 7
DWELLING IN THE LAND RECORDS OF THE COUNTY. 8

SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 9
applicable to all taxable years beginning after June 30, 2026. 10

SECTION 4. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take 11
effect July 1, 2026 July 1, 2027. 12

SECTION 5. AND BE IT FURTHER ENACTED, That, except as provided in Section 13
4 of this Act, this Act shall take effect June 1, 2026. 14

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