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.
Italics indicate opposite chamber/conference committee amendments.
*sb0765*

SENATE BILL 765
Q1 (6lr3224)
ENROLLED BILL
— Budget and Taxation/Ways and Means —
Introduced by Senator Zucker Senators Zucker, Augustine, Hettleman, and
McCray

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.

______________________________________________
President.

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 h omes; 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 governme nts 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
2 SENATE BILL 765

who are not shown as the record title holder of a dwelling in the land records of the 1
county for a certain period of time if certain requirements are met; and generally 2
relating to protecting heirs from property tax sales, the Heirs Legacy Protection 3
Program, and the State property tax credit programs. 4

BY repealing and reenacting, without amendments, 5
Article – State Finance and Procurement 6
Section 6–226(a)(2)(i) and (ii) 7
Annotated Code of Maryland 8
(2021 Replacement Volume and 2025 Supplement) 9

BY repealing and reenacting, with amendments, 10
Article – State Finance and Procurement 11
Section 6–226(a)(2)(iii)212. and 213. 12
Annotated Code of Maryland 13
(2021 Replacement Volume and 2025 Supplement) 14

BY adding to 15
Article – State Finance and Procurement 16
Section 6–226(a)(2)(iii)214. 17
Annotated Code of Maryland 18
(2021 Replacement Volume and 2025 Supplement) 19

BY repealing and reenacting, with amendments, 20
Article – Tax – Property 21
Section 2–112, 9–104(a)(9) through (12), (f), (l), and (u)(1) and 9 –105(a)(7) through 22
(9), (d)(6), and (g) 23
Annotated Code of Maryland 24
(2019 Replacement Volume and 2025 Supplement) 25

BY adding to 26
Article – Tax – Property 27
Section 2–113, 9–104(a)(9), and 9–105(a)(7) 28
Annotated Code of Maryland 29
(2019 Replacement Volume and 2025 Supplement) 30

BY repealing and reenacting, without amendments, 31
Article – Tax – Property 32
Section 9–104(a)(1) and 9–105(a)(1) and (d)(7) and (8) 33
Annotated Code of Maryland 34
(2019 Replacement Volume and 2025 Supplement) 35

BY repealing 36
Article – Tax – Property 37
Section 9–104(a)(13) 38
Annotated Code of Maryland 39
(2019 Replacement Volume and 2025 Supplement) 40
SENATE BILL 765 3

BY repealing and reenacting, with amendments, 1
Chapter 717 of the Acts of the General Assembly of 2024, as amended by Chapters 2
237, 409, and 410 of the Acts of the General Assembly of 2025 3
Section 8(87) and (88) 4

BY adding to 5
Chapter 717 of the Acts of the General Assembly of 2024, as amended by Chapters 6
237, 409, and 410 of the Acts of the General Assembly of 2025 7
Section 8(89) 8

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That the Laws of Maryland read as follows: 10

Article – State Finance and Procurement 11

6–226. 12

(a) (2) (i) This paragraph does not apply in fiscal years 2024 through 2028. 13

(ii) Notwithstanding any other provision of law, and unless 14
inconsistent with a federal law, grant agreement, or other federal requirement or with the 15
terms of a gift or settlement agreement, net interest on all State money allocated by the 16
State Treasurer under this section to special funds or accounts, and otherwise entitled to 17
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 18
Fund of the State. 19

(iii) The provisions of subparagraph (ii) of this paragraph do not 20
apply to the following funds: 21

212. the Department of Social and Economic Mobility Special 22
Fund; [and] 23

213. the Population Health Improvement Fund; AND 24

214. THE HEIRS LEGACY PROTECTION FUND. 25

Article – Tax – Property 26

2–112. 27

(a) (1) In this section the following words have the meanings indicated. 28

(2) (I) “Homeowner” has the meaning stated in § 9–105 of this article. 29

(II) “HOMEOWNER” INCLUDES: 30
4 SENATE BILL 765

1. THE ESTATE OF A DECEASED HOMEOWNER; 1

2. THE PERSONAL REPRESE NTATIVE OF A DECEASE D 2
HOMEOWNER; OR 3

3. AN INDIVIDUA L WHO IS AN HEIR OR LEGATEE OF A 4
DECEASED HOMEOWNER W HO IS ENTITLED TO IN HERIT THE DECEASED 5
HOMEOWNER’S DWELLING. 6

(3) “Tax” has the meaning stated in § 14–801 of this article. 7

(b) There is a State Tax Sale Ombudsman in the Department. 8

(c) The Ombudsman: 9

(1) shall be appointed by the Director; 10

(2) shall be in the management service of the State Personnel Management 11
System; and 12

(3) may be removed from office only after a hearing before the Department 13
and a finding of incompetency or other good cause. 14

(d) The Ombudsman shall: 15

(1) assist homeowners to understand the process for collection of 16
delinquent taxes; 17

(2) actively assist homeowners to apply for tax credits, discount programs, 18
and other public benefits that may assist the homeowners to pay delinquent taxes and 19
improve their financial situation; 20

(3) refer homeowners to legal services, housing counseling, and other social 21
services that may assist homeowners to pay delinquent taxes and improve their financial 22
situation; 23

(4) maintain a website that functions as a clearinghouse for information 24
concerning: 25

(i) the process for collection of delinquent taxes; and 26

(ii) services and programs that are available to assist homeowners 27
to pay delinquent taxes and improve their financial situation; and 28

SENATE BILL 765 5

(5) maintain a toll –free telephone number that a homeowner may call to 1
obtain individualized personal assistance with delinquent taxes. 2

(e) A county may, by law, establish a County Tax Sale Ombudsman to fulfill all 3
the responsibilities of the State Tax Sale Ombudsman under subsection (d) of this section 4
with respect to homeowners within the county. 5

(f) (1) The Ombudsman shall contract with a vendor to operate an installment 6
payment program for the payment of taxes in which any homeowner may enroll. 7

(2) The installment payment program shall allow a homeowner to: 8

(i) make advance payments of taxes; 9

(ii) make payments of taxes currently due; or 10

(iii) make payments of taxes in arrears. 11

(3) (i) A homeowner whos e dwelling is subject to a deed of trust, a 12
mortgage, or any other encumbrance that includes the escrowing of tax payments may not 13
enroll in the installment payment program for the advance payment of taxes. 14

(ii) An advance payment of taxes is calculate d by applying the 15
current property tax rate to the assessment of the homeowner’s property for the prior year. 16

(iii) If the advance payment is different than the taxes due as finally 17
determined, the vendor shall: 18

1. bill the homeowner for the unpaid balance; or 19

2. refund any excess tax paid. 20

(iv) The failure by a homeowner to make an advance payment under 21
the installment payment program may not be considered to be a failure to pay the property 22
tax when due except as provided under Title 10, Subtitle 1 of this article. 23

(4) The Ombudsman shall notify the collector to whom the taxes are owed 24
when a homeowner enters into an installment payment plan under this subsection. 25

(5) If a homeowner is in compliance with the terms of an installment 26
payment plan, the collector may not take action under Title 14, Subtitle 8 of this article to 27
collect any property taxes in arrears that are included in the installment payment plan. 28

(6) A homeowner is not in compliance with the terms of an installment 29
payment plan if the homeowner fails to make a payment for a period of 90 days after the 30
date the payment is due, or a longer period determined by the Ombudsman. 31

6 SENATE BILL 765

(7) If a homeowner is not in compliance with the terms of an installment 1
payment plan: 2

(i) the Ombudsman: 3

1. may terminate the installment payment plan; and 4

2. shall notify the collector to whom the taxes are owed; and 5

(ii) the collector may take action under Title 14, Subtitle 8 of this 6
article to collect any property taxes in arrears that were included in the installment 7
payment plan. 8

(8) The cost of the contract with the vendor to operate the installment 9
payment program shall be paid entirely by reasonable fees imposed on homeowners 10
enrolled in the program. 11

2–113. 12

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 13
INDICATED. 14

(2) “DWELLING” HAS THE MEANING STAT ED IN § 9–105 OF THIS 15
ARTICLE. 16

(3) “HEIR” MEANS AN INDIVIDUAL WHO IS AN HEIR OR A LEGATEE OF 17
A DECEASED HOMEOWNER WHO IS ENTITLED TO I NHERIT THE DECEASED 18
HOMEOWNER’S DWELLING. 19

(4) “HOMEOWNER” HAS THE MEANING STAT ED IN § 9–105 OF THIS 20
ARTICLE. 21

(5) “OMBUDSMAN” MEANS THE STATE TAX SALE OMBUDSMAN 22
ESTABLISHED UNDER § 2–112 OF THIS SUBTITLE. 23

(6) “PROGRAM” MEANS THE HEIRS LEGACY PROTECTION PROGRAM 24
ESTABLISHED UNDER THIS SECTION. 25

(7) “RECORD TITLE HOLDER” MEANS THE PERSON WHO IS LISTED AS 26
THE OWNER OF A DWELLING ON A DEED RECORDED IN THE LAND RECORDS OF THE 27
COUNTY WHERE THE DWELLING IS LOCATED. 28

(B) (1) THERE IS AN HEIRS A LEGACY PROTECTION PROGRAM 29
ADMINISTERED BY THE OMBUDSMAN IN THE DEPARTMENT. 30
SENATE BILL 765 7

(2) THE PURPOSE OF THE PROGRAM IS TO: 1

(I) ALLOW HEIRS WHO INHE RIT A DWELLING TO BE COME THE 2
RECORD TITLE HOLDER OF THE DWELLING; 3

(II) PREVENT TAX SALES OF DWELLINGS INHERITED BY HEIRS; 4
AND 5

(III) ALLOW HEIRS TO REMAIN IN THEIR HOMES. 6

(C) WHEN THE DEPARTMENT RECEIVES I NFORMATION THAT A 7
HOMEOWNER WHO WAS GRANTED THE CREDIT UNDER § 9–104 OR § 9–105 OF THIS 8
ARTICLE HAS DIED , THE OMBUDSMAN SHALL SEND A NOTICE BY MAIL TO THE 9
HOMEOWNER’S FORMER DWELLING NOTIFYING ANY HEIR THAT MAY BE RESIDING IN 10
THE DWELLING: 11

(1) THAT THE HEIR MAY BE ELIGIBLE FOR THE CRE DITS UNDER § 12
9–104 OR § 9–105 OF THIS ARTICLE; 13

(2) HOW TO APPLY FOR THE CREDITS UNDER § 9–104 OR § 9–105 OF 14
THIS ARTICLE BY COMPLETIN G AN APPLICATION AND FILING AN AFFIDAVIT OF 15
HEIRSHIP; 16

(3) WHY IT IS IMPORTANT FOR THE HEIR TO BECO ME THE RECORD 17
TITLE HOLDER OF THE DWELLING; 18

(4) THAT THE HEIR SHOULD CONTACT THE OMBUDSMAN FOR 19
INFORMATION ABOUT HO W TO BECOME THE RECORD TITLE HOLDER OF THE 20
DWELLING; AND 21

(5) THAT FREE LEGAL SERVICES AND GRANTS MAY BE AVAILABLE TO 22
ASSIST THE HEIR TO BECOME THE RECORD TITLE HOLDER OF THE DWELLING. 23

(D) IN COLLABORATION WITH THE REGISTERS OF WILLS, THE OMBUDSMAN 24
SHALL: 25

(1) DEVELOP A BRIEF, EASY–TO–UNDERSTAND, STEP–BY–STEP GUIDE 26
TO PROBATING AN ESTA TE AND BECOMING THE RECORD TITLE HOLDER OF A 27
DWELLING; AND 28

8 SENATE BILL 765

(2) POST THE GUIDE DEVEL OPED UNDER ITEM (1) OF THIS 1
SUBSECTION ON THE OMBUDSMAN’S WEBSITE AND PROVID E THE GUIDE TO HEIRS 2
WHO CONTACT THE OMBUDSMAN. 3

(E) (1) THE OMBUDSMAN SHALL PROVIDE GRANTS TO QUALIFIED LEGAL 4
SERVICES ORGANIZATIO NS FOR THE PURPOSE O F PROVI DING FREE LEGAL 5
ASSISTANCE TO HEIRS TO NAVIGATE THE PROB ATE PROCESS AND BECO ME THE 6
RECORD TITLE HOLDER OF THEIR DWELLINGS. 7

(2) THE OMBUDSMAN SHALL DETERMINE: 8

(I) THE LEGAL SERVICES ORGANIZATIONS TO RECEIVE GRANTS 9
UNDER PARAGRAPH (1) OF THIS SUBSECTION; 10

(II) THE AMOUNT OF GRANTS TO INDIVIDUAL LEGAL SERVICES 11
ORGANIZATIONS; AND 12

(III) THE CUMULATIVE AMOUNT OF GRANTS TO AWARD IN EACH 13
FISCAL YEAR. 14

(3) AN HEIR MAY QUALIFY T O RECEIVE FREE LEGAL ASSISTANCE 15
FROM A LEGAL SERVICE S ORGANIZATION THAT RECEIVES A GRANT UND ER 16
PARAGRAPH (1) OF THIS SUBSECTION I F THE HEIR ’S DWELLING IS VALUED AT 17
$350,000 $450,000 OR LESS, AS SHOWN IN THE RECORDS OF THE DEPARTMENT. 18

(F) (1) THE OMBUDSMAN SHALL PROVIDE GRANTS DIRECTLY T O HEIRS 19
TO PAY ALL OR PART O F PROBATE FEES UNDER § 2–206 OF THE ESTATES AND 20
TRUSTS ARTICLE OR, INHERITANCE TAXES UN DER TITLE 7, SUBTITLE 2 OF THE 21
TAX – GENERAL ARTICLE, OR ANY OTHER TAX OR FEE THAT AN HEIR MUST PAY TO 22
COMPLETE THE PROBATE PROCESS AND BECOME T HE RECORD TITLE HOLD ER OF 23
THE HEIR’S DWELLING. 24

(2) AN HEIR MAY QUALIFY T O RECEIVE A GRANT IF THE HEIR ’S 25
DWELLING IS VALUED AT $350,000 $450,000 OR LESS, AS SHOWN IN THE RECORDS 26
OF THE DEPARTMENT. 27

(3) THE OMBUDSMAN SHALL DETERMINE: 28

(I) THE INDIVIDUAL HEIRS TO RECEIVE GRANTS UN DER 29
PARAGRAPH (1) OF THIS SUBSECTION; 30

(II) THE AMOUNT AND PURPO SE OF GRANTS TO INDI VIDUAL 31
HEIRS; AND 32
SENATE BILL 765 9

(III) THE CUMULATIVE AMOUNT OF GRANTS TO BE AWARDED TO 1
ALL HEIRS IN EACH FISCAL YEAR. 2

(4) THE OMBUDSMAN MAY ESTABLI SH ADDITIONAL ELIGIB ILITY 3
CRITERIA FOR GRANTS THAT PRIORITIZE LOW –INCOME, ELDERLY, AND DISABLED 4
HEIRS. 5

(G) THE OMBUDSMAN SHALL PROVI DE THE NAME OF EACH HEIR WHO 6
CONTACTS THE OMBUDSMAN AND THE ADDRESS OF THE HEIR’S DWELLING TO THE 7
COUNTY WHERE THE HEI R’S DWELLING IS LOCATE D FOR INCLUSION ON T HE 8
COUNTY’S REGISTRY OF PROPER TIES TO BE WITHHELD FROM TAX SALE UNDER § 9
14–811(J) OF THIS ARTICLE. 10

(H) (1) IN THIS SUBSECTION , “FUND” MEANS THE HEIRS LEGACY 11
PROTECTION FUND. 12

(2) THERE IS AN HEIRS A LEGACY PROTECTION FUND. 13

(3) THE PURPOSE OF THE FUND IS TO FINANCE THE PROGRAM. 14

(4) THE DEPARTMENT SHALL ADMINISTER THE FUND. 15

(5) (I) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 16
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 17

(II) THE STATE TREASURER SHALL HOLD THE FUND 18
SEPARATELY, AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 19

(6) THE FUND CONSISTS OF: 20

(I) MONEY APPROPRIATED I N THE STATE BUDGET TO THE 21
FUND; 22

(II) MONEY PAID BY COUNTY GOVERNMENTS UNDER 23
PARAGRAPH (8) OF THIS SUBSECTION; 24

(III) INTEREST EARNINGS; AND 25

(IV) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 26
FOR THE BENEFIT OF THE FUND. 27

10 SENATE BILL 765

(7) FOR EACH FISCAL YEAR, THE GOVERNOR SHALL INCLUDE IN THE 1
ANNUAL BUDGET BILL A N APPROPRIATION OF $250,000 OF THE INTEREST ON 2
OVERDUE STATE PROPERTY TAX TO THE FUND. 3

(8) (I) FOR EACH FISCAL YEAR , COUNTY GOVERNMENTS S HALL 4
COLLECTIVELY PAY $500,000 TO THE FUND. 5

(II) THE AMOUNT REQUIRED T O BE PAID UNDER 6
SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL BE ALLOCATED AMO NG THE 7
COUNTIES BASED ON THE NUMBER OF REAL PROPERTY ACCOUNTS IN EACH COUNTY 8
AS A PERCENTAGE OF T HE TOTAL NUMBER O F REAL PROPERTY ACCO UNTS 9
STATEWIDE AS OF JULY 1 OF THE PRECEDING FISCAL YEAR. 10

(III) THE AMOUNT PAID BY EA CH COUNTY UNDER THIS 11
PARAGRAPH SHALL BE DERIVED FROM INTEREST ON OVERDUE COUNTY PROPERTY 12
TAX. 13

(IV) EACH COUNTY SHALL REM IT TO THE DEPARTMENT TH E 14
COUNTY’S SHARE OF THE AMOUN T REQUIRED UNDER SUB PARAGRAPH (I) OF THIS 15
PARAGRAPH ON OR BEFORE THE FIRST DAY OF EACH FISCAL YEAR. 16

(9) (I) THE FUND MAY BE USED ONLY FOR ANY EXPENSES 17
ASSOCIATED WITH THE PROGRAM. 18

(II) THE FUND MAY NOT BE USED FOR ANY EX PENSES OF THE 19
OFFICE OF THE STATE TAX SALE OMBUDSMAN THAT ARE NOT DIRECTLY RELATED 20
TO THE PROGRAM. 21

(10) (I) THE STATE TREASURER SHALL INVEST THE MONEY OF THE 22
FUND IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. 23

(II) ANY INTEREST EARNINGS OF THE FUND SHALL BE 24
CREDITED TO THE FUND. 25

(11) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN 26
ACCORDANCE WITH THE STATE BUDGET. 27

(12) THE FUND IS THE EXCLUSIVE SOURCE OF FUNDING FO R THE 28
PROGRAM. 29

Chapter 717 of the Acts of 2024, as amended by Chapters 237, 409, and 410 of the 30
Acts of 2025 31

SENATE BILL 765 11

SECTION 8. AND BE IT FURTHER ENACTED, That, notwithstanding any other 1
provision of law, and unless inconsistent with a federal law, grant agreement, or other 2
federal requirement, or with the terms of a gift or settle ment agreement, for fiscal years 3
2024 through 2028, net interest on all State money allocated by the State Treasurer under 4
§ 6–226 of the State Finance and Procurement Article to special funds or accounts, and 5
otherwise entitled to receive interest earning s, as accounted for by the Comptroller, shall 6
accrue to the General Fund of the State, with the exception of the following funds: 7

(87) the Academic Excellence Fund; [and] 8

(88) the Abandoned and Neglected Cemeteries Fund; AND 9

(89) THE HEIRS LEGACY PROTECTION FUND. 10

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 11
as follows: 12

Article – Tax – Property 13

9–104. 14

(a) (1) In this section the following words have the meanings indicated. 15

(9) “HEIR” MEANS AN INDIVIDUAL WHO IS AN HEIR OR A LEGATEE OF 16
A DECEASED HOMEOWNER WHO IS ENTITLED TO I NHERIT THE DECEASED 17
HOMEOWNER’S DWELLING. 18

[(9)] (10) (i) “Homeowner” means an individual who: 19

1. on July 1 of the taxable year for which the tax credit is to 20
be allowed: 21

A. actually resides in a dwelling in which the individual has 22
a legal interest; or 23

B. under a court order or separation agreement, permits a 24
spouse, a former spouse, or a child of the individual’s family to reside without payment of 25
rent in a dwelling in which the individual has a legal interest; or 26

2. A. is a home purchaser; and 27

B. actually resides in a dwelling in which the individual has 28
a legal interest, whether or not the individual resides in the dwelling on July 1 of the 29
taxable year for which the tax credit is sought. 30

12 SENATE BILL 765

(ii) “Homeowner” includes a beneficiary of a trust described in 42 1
U.S.C. § 1396p(d)(4), or a trust established for the benefit of an individual with a disability 2
by an individual other than the beneficiary and that is funded with assets that were never 3
owned or controlled by the beneficiary, if, on July 1 of the taxable year for which the tax 4
credit is to be allowed, the beneficiary of the trust is an individual who actually resides in 5
the dwelling. 6

[(10)] (11) “Home purchaser” means an individual who purchases a 7
dwelling in the taxable year for which the tax credit under this section is sought. 8

[(11)] (12) “Legal interest” includes an interest in a dwelling: 9

(i) as sole owner; 10

(ii) as a joint tenant; 11

(iii) as a tenant in common; 12

(iv) as a tenant by the entireties; 13

(v) through membership in a cooperative; 14

(vi) under a land installment contract, as defined in § 10 –101 of the 15
Real Property Article; 16

(vii) as a holder of a life estate; OR 17

(viii) under a continuing care contract for an independent living unit 18
at a continuing care facility for the aged, which means a nontransferable agreement 19
between a continuing care facility for the aged as defined in § 7 –206 of this article and an 20
occupant of an independent living unit, which agreement provides that the occupant may 21
reside in the unit until termination under the terms of the contract[; or 22

(ix) as a surviving family member who stands to inherit the dwelling 23
of a deceased homeowner under the terms of: 24

1. the deceased homeowner’s will or trust or a nonprobate 25
instrument of writing; or 26

2. under the laws of intestate succession]. 27

[(12)] (13) “Net worth” means the sum of the current market value of all 28
assets, less any outstanding liability. 29

[(13) “Surviving family member” means an individual related to a deceased 30
homeowner by blood, adoption, or marriage.] 31
SENATE BILL 765 13

(f) (1) A homeowner who meets the requirements of this section shall be 1
granted the property tax credit under this section against the property tax imposed on the 2
real property of the dwelling. 3

(2) (I) AN HEIR WHO IS NOT SH OWN AS THE RECORD TI TLE 4
HOLDER OF A DWELLING IN THE LAND RECORDS OF THE COUNTY SHALL BE 5
GRANTED THE PROPERTY TAX CREDIT UNDER THIS SECTION IF THE HEIR: 6

1. FILES AN APPLICATION IN ACCORDANCE WITH 7
SUBSECTION (D)(6) (L) OF THIS SECTION; 8

2. MEETS THE ELIGIBILIT Y REQUIREMENTS FOR A 9
HOMEOWNER UNDER THIS SECTION; AND 10

3. MEETS ALL THE OTHER REQUIREMENTS OF THIS 11
SECTION. 12

(II) AN HEIR WHO IS NOT SH OWN AS THE RECORD TI TLE 13
HOLDER OF THE DWELLI NG IN THE LAND RECOR DS OF THE COUNTY MAY BE 14
GRANTED THE TAX CRED IT UNDER THIS SECTIO N FOR A MAXIMUM OF 3 TAXABLE 15
YEARS. 16

(III) AFTER RECEIVING THE T AX CREDIT UNDER THIS SECTION 17
FOR 3 TAXABLE YEARS , AN HEIR MAY RECEIVE THE TAX CREDIT UNDER THIS 18
SECTION ONLY IF THE HEIR IS SHOWN AS THE RECORD TITLE HOLDER OF THE 19
DWELLING IN THE LAND RECORDS OF THE COUNTY. 20

(l) (1) On or before the February 15 that precedes the taxable year in which 21
the property tax credit under this section is sought, the Department shall make available 22
that year’s property tax credit application form. 23

(2) (i) Except as provided in subsections (m), (u), and (v) of this section, 24
on or before October 1 of the taxable year in which the property tax credit under this section 25
is sought, a homeowner may apply to the Department for a property tax credit under this 26
section. 27

(ii) The application shall be made on the form that the Department 28
provides. 29

(3) (i) For good cause, the Department may accept an application after 30
October 1 but on or before October 31 of the taxable year. 31

(ii) The Department shall notify the homeowner in writing of its 32
acceptance or rejection of a late application. 33
14 SENATE BILL 765

(4) The homeowner shall state under oath that the facts in the application 1
are true. 2

(5) (i) Except as provided in subparagraph (ii) of this paragraph, to 3
substantiate the application, the applicant may be required to provide a copy of an income 4
tax return, or other evidence detailing gross income or net worth. 5

(ii) An applicant who is required to substantiate an application 6
under subparagraph (i) of this paragraph may, under penalties of perjury, attest to gross 7
income in lieu of providing an income tax return if the applicant w as not required to and 8
did not file an income tax return. 9

(6) TO APPLY FOR THE CRED IT UNDER THIS SECTIO N, AN HEIR 10
SHALL: 11

(I) COMPLETE THE APPLICATION UNDER THIS SUBSECTION; 12

(II) COMPLETE AN AFFIDAVIT UNDER OATH ON THE FORM THE 13
DEPARTMENT PROVI DES ATTESTING THAT T HE INDIVIDUAL IS AN HEIR OR A 14
LEGATEE OF A DECEASE D HOMEOWNER WHO IS E NTITLED TO INHERIT T HE 15
DECEASED HOMEOWNER’S DWELLING; AND 16

(III) ATTACH TO THE APPLIC ATION A COPY OF THE DEATH 17
CERTIFICATE OF THE D ECEASED HOMEOWNER FROM WHOM THE HEIR INHERITED 18
THE DWELLING. 19

(u) (1) Under the conditions set forth in this subsection, the Department may 20
accept an application from a homeowner within: 21

(i) 1 year after April 15 of the taxable year for which the property 22
tax credit under this section is sought, if the homeowner: 23

1. is applying for the first time; or 24

2. has filed an application on or before October 1 in each of 25
the 3 taxable years immediately preceding the taxable year for which the credit is sought; 26
or 27

(ii) 3 years a fter April 15 of the taxable year for which a credit is 28
sought, if the homeowner is: 29

1. A. at least 70 years old as of the taxable year for which 30
a credit is sought; [or] 31

SENATE BILL 765 15

B. enrolled in the Homeowner Protection Program 1
established under Title 14, Subtitle 8, Part VII of this article; OR 2

C. AN HEIR; and 3

2. was eligible for the credit under this section for the taxable 4
year for which the credit is sought. 5

9–105. 6

(a) (1) In this section the following words have the meanings indicated. 7

(7) “HEIR” MEANS AN INDIVIDUAL WHO IS AN HEIR OR A LEGATEE OF 8
A DECEASED HOMEOWNER WHO IS ENTITLED TO I NHERIT THE DECEASED 9
HOMEOWNER’S DWELLING. 10

[(7)] (8) “Homeowner” means an individual who has a legal interest in a 11
dwelling or who is an active member of an agricultural ownership entity that has a legal 12
interest in a dwelling. 13

[(8)] (9) “Legal interest” means an interest in a dwelling: 14

(i) as a sole owner; 15

(ii) as a joint tenant; 16

(iii) as a tenant in common; 17

(iv) as a tenant by the entireties; 18

(v) through membership in a cooperative; 19

(vi) under a land installment contract, as defined in § 10 –101 of the 20
Real Property Article; 21

(vii) as a holder of a life estate; or 22

(viii) as a settlor, grantor, or beneficiary of a trust if: 23

1. the settlor, grantor, or beneficiary of the trust does not pay 24
rent or other remuneration to reside in the dwelling; and 25

2. legal title to the dwelling is held in the name of the trust 26
or in the names of the trustees for the trust. 27

16 SENATE BILL 765

[(9)] (10) “Taxable assessment” means the assessment on which the 1
property tax rate was imposed in the preceding taxable year, adjusted by the phased –in 2
assessment increase resulting from a revaluation under § 8–104(c)(1)(iii) of this article, less 3
the amount of any assessment on which a property tax credit under this section is 4
authorized. 5

(d) (6) (i) Except as provided under paragraph (7) of this subsection, to 6
qualify for the credit un der this section, a homeowner shall submit an application for the 7
credit to the Department as provided in this paragraph. 8

(ii) The application shall: 9

1. be made on the form that the Department provides; 10

2. provide the information required by the form; 11

3. include a statement by the homeowner under oath that the 12
facts stated in the application are true, correct, and complete; and 13

4. except as provided in subparagraph (iii) of this paragraph, 14
be filed on or before the May 1 preceding th e first taxable year for which the property tax 15
credit under this section is to be allowed. 16

(iii) For a dwelling that was last transferred for consideration to new 17
ownership on or before December 31, 2007, an application shall be filed with the 18
Department on or before December 30, 2013, or the Department may not authorize and the 19
State, county, and municipal corporation may not grant the property tax credit under this 20
section: 21

1. for the taxable year beginning July 1, 2014; and 22

2. for a taxable year beginning after June 30, 2015, unless an 23
application is filed as required under subparagraphs (i) and (ii) of this paragraph. 24

(IV) TO APPLY FOR THE CREDIT UNDER THIS SECTION, AN HEIR 25
SHALL: 26

1. COMPLETE THE APPLICA TION UNDER THIS 27
PARAGRAPH; 28

2. COMPLETE AN AFFIDAVIT UNDER OATH ON THE FORM 29
THE DEPARTMENT PROVIDES A TTESTING THAT THE IN DIVIDUAL IS AN HEIR OR A 30
LEGATEE OF A DECEASE D HOMEOWNER WHO IS E NTITLED TO INHERIT T HE 31
DECEASED HOMEOWNER’S DWELLING; AND 32

SENATE BILL 765 17

3. ATTACH TO THE APPLICATION A COPY OF THE DEATH 1
CERTIFICATE OF THE D ECEASED HOMEOWNER FROM WHOM THE HEIR INH ERITED 2
THE DWELLING. 3

[(iv)] (V) If a dwelling previously received a credit under this section 4
and failed to qualify for 1 taxable year because of a failure to file the application required 5
under this paragraph, the Department: 6

1. shall grant the credit for the dwelling for the next 7
following taxable year on the timely filing of the application by the same homeowner who 8
previously received the credit; and 9

2. shall calculate the prior year’s taxable assessment for the 10
dwelling as if the credit had not been lost for the 1 intervening taxable year. 11

[(v)] (VI) The Department shall provide a homeowner the option to 12
submit the application required under this p aragraph electronically on the Department’s 13
website. 14

(7) If a homeowner submits an application to the Department under this 15
section and the Department determines that the homeowner was eligible for the credit in 16
the prior taxable year but failed to file an application for the credit as required under this 17
subsection: 18

(i) the homeowner shall be retroactively qualified for the 19
Homestead Property Tax Credit Program for the prior taxable year; and 20

(ii) the Department shall calculate the prior year’s taxable 21
assessment as if the credit had been granted for the prior taxable year. 22

(8) (i) This paragraph shall be interpreted broadly to apply to any 23
homeowner who: 24

1. is at least 70 years of age; 25

2. was eligible for the credit in the prior taxable year but 26
failed to file an application for the credit; and 27

3. applies for a credit for the current taxable year. 28

(ii) For homeowners that meet the criteria under subparagraph (i) of 29
this paragraph, the Department shall calculate the current year’s taxable assessment as if 30
the credit had been granted for the prior taxable year. 31

(iii) A homeowner who meets the criteria under subparagraph (i) of 32
this paragraph is not due a reimbursement of property taxes paid in prior taxable years. 33
18 SENATE BILL 765

(g) (1) A homeowner who meets the requirements of this section shall be 1
granted the property tax credit under this section against the State, county, and municipal 2
corporation property tax and any property tax imposed for a bicounty commission imposed 3
on the real property of the dwelling. 4

(2) (I) AN HEIR WHO IS NOT SH OWN AS THE RECORD TI TLE 5
HOLDER OF A DWELLING IN THE LAND RECORDS OF THE COUNTY SHALL BE 6
GRANTED THE PROPERTY TAX CREDIT UNDER THIS SECTION IF THE HEIR: 7

1. FILES AN APPLICATION IN ACCORDANCE WITH 8
SUBSECTION (D)(6) OF THIS SECTION; 9

2. MEETS THE ELIGIBILIT Y REQUIREMENTS FOR A 10
HOMEOWNER UNDER THIS SECTION; AND 11

3. MEETS ALL THE OTHER REQUIREMENTS OF THIS 12
SECTION. 13

(II) AN HEIR WHO IS NOT SH OWN AS THE RECORD TI TLE 14
HOLDER O F THE DWELLING IN TH E LAND RECORDS OF TH E COUNTY MAY BE 15
GRANTED THE TAX CRED IT UNDER THIS SECTIO N FOR A MAXIMUM OF 3 TAXABLE 16
YEARS. 17

(III) AFTER RECEIVING THE T AX CREDIT UNDER THIS SECTION 18
FOR 3 TAXABLE YEARS , AN HEIR MAY RECEIVE THE TAX CREDIT UNDER THIS 19
SECTION ONLY IF THE HEIR IS SHOWN AS THE RECORD TITLE HOLDER OF THE 20
DWELLING IN THE LAND RECORDS OF THE COUNTY. 21

SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 22
applicable to all taxable years beginning after June 30, 2026. 23

SECTION 4. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take 24
effect July 1, 2026 July 1, 2027. 25

SECTION 5. AND BE IT FURTHER ENACTED, That, except as provided in Section 26
4 of this Act, this Act shall take effect June 1, 2026. 27