Property Tax - Charter Counties - Application of County Tax Limitation on Public Safety Budget

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.
*sb0520*

SENATE BILL 520
Q2 6lr1944
SB 1041/25 – SRU
By: Senator Kramer
Introduced and read first time: February 4, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 28, 2026

CHAPTER ______

AN ACT concerning 1

Property Tax – Charter Counties – Application of County Tax Limitation on 2
Public Safety Budget 3

FOR the purpose of authorizing a county council of a charter county the county councils of 4
certain charter counties, notwithstanding certain provisions of law, to set by simple 5
majority vote a property tax rate that is higher than the property tax rate authorized 6
under a county’s charter or collect more property tax revenues than the revenues 7
authorized under the county’s charter for the purpose of funding the approved public 8
safety budget of the county; and generally relating to property tax in charter 9
counties. 10

BY repealing and reenacting, with amendments, 11
Article – Education 12
Section 5–104(d) 13
Annotated Code of Maryland 14
(2025 Replacement Volume and 2025 Supplement) 15

BY adding to 16
Article – Local Government 17
Section 16–109.1 18
Annotated Code of Maryland 19
(2013 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
2 SENATE BILL 520

Article – Education 1

5–104. 2

(d) (1) Notwithstanding any provision of a county charter that places a limit 3
on th at county’s property tax rate or revenues and subject to paragraph (2) of this 4
subsection, a county governing body may set a property tax rate that is higher than the 5
rate authorized under the county’s charter or collect more property tax revenues than the 6
revenues authorized under the county’s charter for the [sole] purpose of funding the 7
approved budget of the county board, including any payments by the county governing body 8
on behalf of the county board to the Teachers’ Pension System and the Teachers’ Retirement 9
System. 10

(2) If the county governing body sets a county property tax rate that is 11
greater than the rate authorized under the county’s charter or collects more property tax 12
revenues than the revenues authorized under the county’s charter, the county: 13

(i) May not reduce funding provided to the county board from any 14
other local revenue source below the funding level in the current county budget; and 15

(ii) [Shall] EXCEPT FOR PROPERTY TAX REVENUES COLLECTED 16
FOR THE PURPOSE OF F UNDING A COUNTY ’S PUBLIC SAFETY BUDG ET IN 17
ACCORDANCE WITH § 16–109.1 OF THE LOCAL GOVERNMENT ARTICLE, SHALL 18
appropriate to the county board all property tax revenues exceeding the amount that would 19
have been available if the county charter limitation had applied. 20

(3) On or before December 31 of any year in which a county sets a property 21
tax rate as provided in this subsection, the county shall report to the Governor and, in 22
accordance with § 2 –1257 of the State Government Article, the General Assembly, on the 23
property tax rate set, the additional amount of revenues generated, and the appropriation 24
of the additional revenues. 25

Article – Local Government 26

16–109.1. 27

(A) (1) THIS SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THIS 28
SECTION APPLIES ONLY TO CHARTER COUNTIES. 29

(2) THIS SECTION DOES NOT APPLY TO PRINCE GEORGE’S COUNTY. 30

(B) NOTWITHSTANDING ANY P ROVISION OF A COUNTY CHARTER THAT 31
PLACES A LIMIT ON TH AT COUNTY ’S PROPERTY TAX RATE OR REVENUES , THE 32
COUNTY COUNCIL OF A CHARTER COUNTY MAY SET BY SIMPLE MAJORITY VOTE OF 33
ITS MEMBERS THEN SER VING A PROPERTY TAX RATE THAT IS HIGHER THAN THE 34
SENATE BILL 520 3

RATE AUTHORIZED UNDER THE COUNTY’S CHARTER OR COLLECT MORE PROPERTY 1
TAX REVENUES THAN THE REVENUES AUTHORIZED UNDER THE COUNTY’S CHARTER 2
FOR THE PURPOSE OF F UNDING THE APPROVED PUBLIC SAFETY BUDGET OF THE 3
COUNTY. 4

(C) IF A COUNTY COUNCIL S ETS A COUNTY PROPERT Y TAX RATE THAT IS 5
GREATER THAN THE RAT E AUTHORIZED UNDER T HE COUNTY ’S CHARTER OR 6
COLLECTS MORE PROPER TY TAX REVENUES THAN THE REVENUES AUTHORI ZED 7
UNDER THE COUNTY ’S CHARTER , EXCEPT FOR PROPERTY TAX R EVENUES 8
COLLECTED FOR THE PURPOSE OF FUNDING A C OUNTY’S APPROVED BUDGET OF A 9
COUNTY BOARD OF EDUCATION IN ACCORDANCE WITH § 5–104 OF THE EDUCATION 10
ARTICLE, THE COUNTY SHALL APP ROPRIATE TO THE PUBL IC SAFETY BUDGET ALL 11
PROPERTY TAX REVENU ES EXCEEDING THE AMO UNT THAT WOULD HAVE BEEN 12
AVAILABLE IF THE COUNTY CHARTER LIMITATION HAD APPLIED. 13

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 14
1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026. 15

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