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SB0287 • 2026

Economic Development - Tax Increment Financing - Noncontiguous Areas

Economic Development - Tax Increment Financing - Noncontiguous Areas

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Senator McCray
Last action
2026-03-21
Official status
In the House - Second Reading Passed
Effective date
2026-10-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Economic Development - Tax Increment Financing - Noncontiguous Areas

Authorizing the governing body of a political subdivision to designate certain noncontiguous blighted areas as development districts; and defining "blighted area" as one in which a majority of buildings have declined in productivity by reason of obsolescence, depreciation, or other causes to an extent that they no longer justify fundamental repairs and adequate maintenance.

What This Bill Does

  • Authorizing the governing body of a political subdivision to designate certain noncontiguous blighted areas as development districts; and defining "blighted area" as one in which a majority of buildings have declined in productivity by reason of obsolescence, depreciation, or other causes to an extent that they no longer justify fundamental repairs and adequate maintenance.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-04-08 House

    Favorable Report by Economic Matters

  2. 2026-03-21 House

    Favorable Adopted Second Reading Passed

  3. 2026-02-17 House

    Referred Economic Matters

  4. 2026-02-14 Senate

    Third Reading Passed (42-0)

  5. 2026-02-12 Senate

    Favorable Adopted

  6. 2026-02-12 Senate

    Second Reading Passed

  7. 2026-02-11 Senate

    Favorable Report by Budget and Taxation

  8. 2026-02-09 Senate

    Favorable

  9. 2026-02-09 Senate

    Motion Special Order until 2/17 (Senator Guzzone) Adopted

  10. 2026-01-22 Senate

    Hearing 2/03 at 2:00 p.m.

  11. 2026-01-21 Senate

    First Reading Budget and Taxation

  12. Maryland General Assembly

    Text - First - Economic Development - Tax Increment Financing - Noncontiguous Areas

  13. Maryland General Assembly

    Vote - Senate - Committee - Budget and Taxation

  14. Maryland General Assembly

    Text - Third - Economic Development - Tax Increment Financing - Noncontiguous Areas

  15. Maryland General Assembly

    Vote - House - Committee - Economic Matters

Official Summary Text

Authorizing the governing body of a political subdivision to designate certain noncontiguous blighted areas as development districts; and defining "blighted area" as one in which a majority of buildings have declined in productivity by reason of obsolescence, depreciation, or other causes to an extent that they no longer justify fundamental repairs and adequate maintenance.

Current Bill Text

Read the full stored bill text
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.
*sb0287*

SENATE BILL 287
C8 6lr0707
HB 942/25 – W&M CF HB 135
By: Senator McCray
Introduced and read first time: January 21, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable
Senate action: Adopted
Read second time: February 12, 2026

CHAPTER ______

AN ACT concerning 1

Economic Development – Tax Increment Financing – Noncontiguous Areas 2

FOR the purpose of authorizing the governing body of a political subdivision to designate 3
certain noncontiguous areas as development districts; and generally relating to tax 4
increment financing for noncontiguous areas. 5

BY renumbering 6
Article – Economic Development 7
Section 12–201(e) through (u) 8
to be Section 12–201(f) through (v), respectively 9
Annotated Code of Maryland 10
(2024 Replacement Volume and 2025 Supplement) 11

BY repealing and reenacting, without amendments, 12
Article – Economic Development 13
Section 12–201(a) 14
Annotated Code of Maryland 15
(2024 Replacement Volume and 2025 Supplement) 16

BY adding to 17
Article – Economic Development 18
Section 12–201(e) 19
Annotated Code of Maryland 20
(2024 Replacement Volume and 2025 Supplement) 21

2 SENATE BILL 287

BY repealing and reenacting, with amendments, 1
Article – Economic Development 2
Section 12–201(i) 3
Annotated Code of Maryland 4
(2024 Replacement Volume and 2025 Supplement) 5
(As enacted by Section 1 of this Act) 6

BY repealing and reenacting, with amendments, 7
Article – Economic Development 8
Section 12–202 and 12–203(a)(1) 9
Annotated Code of Maryland 10
(2024 Replacement Volume and 2025 Supplement) 11

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That Section(s) 12–201(e) through (u) of Article – Economic Development of the Annotated 13
Code of Maryland be renumbered to be Section(s) 12–201(f) through (v), respectively. 14

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 15
as follows: 16

Article – Economic Development 17

12–201. 18

(a) In this subtitle the following words have the meanings indicated. 19

(E) “BLIGHTED AREA ” MEANS AN AREA IN WHI CH A MAJORITY OF 20
BUILDINGS HAVE DECLI NED IN PRODUCTIVITY BY REASON OF OBSOLES CENCE, 21
DEPRECIATION, OR OTHER CAUSES TO AN EXTENT THAT THEY NO LONGER JUSTIFY 22
FUNDAMENTAL REPAIRS AND ADEQUATE MAINTENANCE. 23

(i) (1) “Development district” means a contiguous OR NONCONTIGUOUS area 24
designated by a resolution. 25

(2) “Development district” includes an extraordinary development district. 26

12–202. 27

(a) (1) This subtitle is self–executing. 28

(2) A political subdivi sion need not amend its charter to exercise the 29
powers granted by this subtitle. 30

(b) (1) [This] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 31
SUBSECTION, THIS subtitle does not apply in Baltimore City. 32

SENATE BILL 287 3

(2) THE PROVISIONS OF § 12–203(A)(1)(II) OF THIS SUBTITLE 1
PERTAINING TO NONCONTIGUOUS BLIGHTED AREAS APPLY IN BALTIMORE CITY. 2

12–203. 3

(a) Before issuing bonds, the governing body of the political subdivision shall: 4

(1) by resolution: 5

(i) designate a contiguous area within its jurisdiction as a 6
development district; 7

(ii) DESIGNATE A NONCONTI GUOUS BLIGHTED AREA WITHIN 8
ITS JURISDICTION AS A DEVELOPMENT DISTRICT; 9

(III) identify an area that has been designated a sustainable 10
community; or 11

[(iii)] (IV) identify an area that has been designated a RISE zone; 12

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 13
October 1, 2026. 14

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