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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1273*
HOUSE BILL 1273
Q1 6lr3465
By: Delegate Miller
Introduced and read first time: February 12, 2026
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Maryland Homeowner Protection and Homestead Tax Credit Portability Act of 2
2026 3
FOR the purpose of altering the maximum homestead tax credit percentage for State, 4
county, municipal, and bicounty commission property tax; establishing a homestead 5
portability adjustment for certain homeowners; and generally relating to property 6
taxes for homeowners. 7
BY repealing and reenacting, without amendments, 8
Article – Tax – Property 9
Section 9–105(a)(9) 10
Annotated Code of Maryland 11
(2019 Replacement Volume and 2025 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Tax – Property 14
Section 9–105(e) 15
Annotated Code of Maryland 16
(2019 Replacement Volume and 2025 Supplement) 17
BY adding to 18
Article – Tax – Property 19
Section 9–105.2 20
Annotated Code of Maryland 21
(2019 Replacement Volume and 2025 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – Tax – Property 25
2 HOUSE BILL 1273
9–105. 1
(a) (9) “Taxable assessment” means the assessment on which the property tax 2
rate was imposed in the preceding taxable year, adjusted by the phased –in assessment 3
increase resulting from a revaluation under § 8–104(c)(1)(iii) of this article, less the amount 4
of any assessment on which a property tax credit under this section is authorized. 5
(e) (1) For each taxable year, the property tax credit under this section is 6
calculated by: 7
(i) multiplying the prior year’s taxable assessment by the 8
homestead credit percentage as provided under paragraph (2) of this subsection; 9
(ii) subtracting that amount from the current year’s assessment; and 10
(iii) if the difference is a positive number, multiplying the difference 11
by the applicable property tax rate for the current year. 12
(2) For each taxable year, the homestead credit percentage under 13
paragraph (1)(i) of this subsection is: 14
(i) for the State property tax and for any property tax imposed for a 15
bicounty commission, [110%] 105%; 16
(ii) for the county property tax: 17
1. the homestead credit percentage established by the county 18
under paragraph (3) of this subsection; or 19
2. if the county has not set a percentage for the taxable year 20
under paragraph (3) of this subsection or has not notified the Department as required under 21
paragraph (6) of this subsection, the homestead credit percentage in effect for the county 22
for the preceding taxable year; and 23
(iii) for the municipal corporation property tax: 24
1. the homestead credit percentage established by the 25
municipal corporation under paragraph (4) of this subsection; or 26
2. if the municipal corporation has not set a percentage 27
under paragraph (4) of this subsection or has not notified the Department as required under 28
paragraph (7) of this subsection, the homestead credit per centage for the taxable year for 29
the county in which the property is located. 30
(3) Subject to paragraph (5) of this subsection, the Mayor and City Council 31
of Baltimore City and the governing body of a county on or before March 15 of any year 32
HOUSE BILL 1273 3
shall set, b y law, the homestead credit percentage for the taxable year beginning the 1
following July 1. 2
(4) Subject to paragraph (5) of this subsection, on or before March 25 of any 3
year, the governing body of a municipal corporation may set or alter, by law, a hom estead 4
credit percentage for the taxable year beginning the following July 1 and any subsequent 5
taxable year. 6
(5) The homestead credit percentage for any county or municipal 7
corporation property tax: 8
(i) may not be less than 100% or exceed [110%] 105% for any 9
taxable year; and 10
(ii) shall be expressed in increments of 1 percentage point. 11
(6) The Mayor and City Council of Baltimore City and the governing body 12
of a county shall notify the Department of any action taken under paragraph (3) of this 13
subsection on or before March 15 preceding the taxable year for which the action is taken. 14
(7) A municipal corporation shall notify the Department of any action 15
taken under paragraph (4) of this subsection on or before March 25 preceding the taxable 16
year for which the action is taken. 17
9–105.2. 18
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 19
INDICATED. 20
(2) “DWELLING” HAS THE MEANING STAT ED IN § 9–105 OF THIS 21
SUBTITLE. 22
(3) “HOMEOWNER” HAS THE MEANING STAT ED IN § 9–105 OF THIS 23
SUBTITLE. 24
(4) “NEW DWELLING” MEANS THE DWELLING WHERE A HOMEOWNER 25
RESIDES AT THE TIME THE HOME OWNER SEEKS THE ADJU STMENT UNDER THIS 26
SECTION. 27
(5) “PREVIOUS DWELLING ” MEANS A DWELLING FOR WHICH A 28
HOMEOWNER RECEIVED THE CREDIT UNDER § 9–105 OF THIS SUBTITLE WITHIN THE 29
3 YEARS PRECEDING THE HOMEOWNER’S ACQUISITION OF A NEW DWELLING. 30
(6) “TAXABLE ASSESSMENT” HAS THE MEANING STAT ED IN § 9–105 31
OF THIS SUBTITLE. 32
4 HOUSE BILL 1273
(B) THERE IS A HOMESTEAD CREDIT PORTABILITY A DJUSTMENT AS 1
PROVIDED IN THIS SECTION. 2
(C) A HOMEOWNER IS ELIGIBL E TO RECEIVE THE HOM ESTEAD CREDIT 3
PORTABILITY ADJUSTMENT IF THE HOMEOWNER: 4
(1) RESIDES IN A NEW DWELLING; 5
(2) RESIDED IN A PREVIOUS DWELLING; AND 6
(3) MEETS THE APPLICATION REQUIREMENTS ESTABLISHED IN THIS 7
SECTION. 8
(D) THE HOMESTEAD CREDIT POR TABILITY ADJUSTMENT IS CALCULATED 9
AS FOLLOWS: 10
(1) THE TAXABLE ASSESSME NT OF THE HOMEOWNER ’S PREVIOUS 11
DWELLING IN THE TAXABLE YEAR THE HOMEOWNER RELINQUISHED OWNERSHIP OF 12
THE PREVIOUS DWELLIN G IS SUBTRACTED FROM THE ASSESSMENT OF TH E 13
HOMEOWNER’S PREVIOUS DWELLING IN THE TAXABLE YEAR THE HOMEOWNER 14
RELINQUISHED OWNERSHIP OF THE PREVIOUS DWELLING; AND 15
(2) THE DIFFERENCE CALCU LATED UNDER ITEM (1) OF THIS 16
SUBSECTION IS SUBTRACTED FROM THE ASSESSMENT OF THE HO MEOWNER’S NEW 17
DWELLING. 18
(E) THE HOMESTEAD CREDIT PORTABILITY ADJUSTMENT: 19
(1) APPLIES IN EACH TAXABLE YEAR IN WHICH THE HOMEOWNER 20
RECEIVES THE CREDIT UNDER § 9–105 OF THIS SUBTITLE FOR THE HOMEOWNER’S 21
NEW DWELLING; AND 22
(2) MAY NOT EXCEED $500,000 OF THE ASSESS MENT OF THE NEW 23
DWELLING. 24
(F) (1) A HOMEOWNER SHALL APPLY FOR THE HOMEST EAD CREDIT 25
PORTABILITY ADJUSTME NT ON THE HOMESTEAD CREDIT APP LICATION FORM 26
UNDER § 9–105(D)(6) OF THIS SUBTITLE. 27
(2) THE DEPARTMENT SHALL MODI FY THE HOMESTEAD CRE DIT 28
APPLICATION FORM UND ER § 9–105(D)(6) OF THIS SUBTITLE AS NECESSARY TO 29
HOUSE BILL 1273 5
DETERMINE AN APPLICANT’S ELIGIBILITY FOR TH E HOMESTEAD CREDIT 1
PORTABILITY ADJUSTMENT. 2
(G) THE DEPARTMENT MAY ADOPT REGULATIONS TO IMPLE MENT THIS 3
SECTION. 4
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 5
1, 2026. 6