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*sb0980*
SENATE BILL 980
Q1 6lr3604
By: Senator Salling
Introduced and read first time: February 15, 2026
Assigned to: Rules
Re–referred to: Budget and Taxation, February 22, 2026
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 4, 2026
CHAPTER ______
AN ACT concerning 1
Property Tax – Credit for Dwelling House of Disabled Veterans and Surviving 2
Spouses – Alterations 3
FOR the purpose of altering repealing a certain income limitation and certain disability 4
rating percentages used to establish eligibility for a certain property tax credit 5
against the county or municipal corporation property tax imposed on t he dwelling 6
house of certain disabled veterans and their surviving spouses; authorizing the 7
Mayor and City Council of Baltimore City or the governing body of a county or 8
municipal corporation to provide for, by law, additional eligibility criteria for the tax 9
credit; and generally relating to a property tax credit for the dwelling house of a 10
disabled veteran and a surviving spouse. 11
BY repealing and reenacting, with amendments, 12
Article – Tax – Property 13
Section 9–265 14
Annotated Code of Maryland 15
(2019 Replacement Volume and 2025 Supplement) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – Tax – Property 19
9–265. 20
2 SENATE BILL 980
(a) (1) In this section the following words have the meanings indicated. 1
(2) “Disabled veteran” means an individual who: 2
(i) is honorably discharged or released under honorable 3
circumstances from active military, naval, or air service as defined in 38 U.S.C. § 101; and 4
(ii) 1. has been declared by the U.S. Department of Veterans 5
Affairs to have a permanent service–connected disability of at least 50% that results from 6
blindness or any other disabling cause that: 7
A. is reasonably certain to continue for the life of the veteran; 8
and 9
B. was not caused or incurr ed by misconduct of the veteran; 10
or 11
2. has been declared by the U.S. Department of Veterans 12
Affairs to have a nonpermanent service –connected disability of 100% that results from 13
blindness or any other disabling cause that was not caused or incurred by misconduct of 14
the veteran. 15
(3) “Dwelling house”: 16
(i) means real property that is: 17
1. the legal residence of a disabled veteran; and 18
2. occupied by not more than two families; and 19
(ii) includes the lot or curtilage and structures neces sary to use the 20
real property as a residence. 21
(b) The Mayor and City Council of Baltimore City or the governing body of a 22
county or municipal corporation may grant, by law, a property tax credit under this section 23
against the county or municipal corporation property tax imposed on a dwelling house if: 24
(1) the dwelling house is owned by a disabled veteran; AND 25
(2) the disabled veteran’s federal adjusted gross income for the 26
immediately preceding taxable year does not exceed: 27
(I) $100,000, IF FILING AN INDIVIDUAL INCOME TAX RETURN ; 28
OR 29
SENATE BILL 980 3
(II) $200,000, IF FILING A JOINT INCOME TAX RETURN; and 1
(3) the application requirements of subsection (d) (C) of this section are 2
met. 3
(c) The property tax credit granted under this section shall equal: 4
(1) 50% of the county or municipal corporation property tax imposed on the 5
dwelling house if the disabled veteran’s service–connected disability rating is at least [75%] 6
70% and the disabled veteran does not qualify for a property tax exemption under § 7–208 7
of this article; or 8
(2) 25% of the county or municipal corporation property tax imposed on the 9
dwelling house if the disabled veteran’s service–connected disability rating is at least 50% 10
but not more than [74%] 69%. 11
(d) (C) (1) A disabled veteran shall apply for the property tax credit under 12
this section by providing to the county or municipal corporation: 13
(i) a copy of the disabled veteran’s discharge certificat e from active 14
military, naval, or air service; and 15
(ii) on the form provided by the county or municipal corporation, a 16
certification of the disabled veteran’s disability from the U.S. Department of Veterans 17
Affairs. 18
(2) The disabled veteran’s certificate of disability may not be inspected by 19
individuals other than: 20
(i) the disabled veteran; or 21
(ii) appropriate employees of the county or municipal corporation. 22
(e) (D) The Mayor and City Council of Baltimore City or the governing body of 23
a county or municipal corporation may, by law, continue to provide the property tax credit 24
under this section to the surviving spouse of the disabled veteran. 25
(f) (E) The Mayor and City Council of Baltimore City or the governing body of a 26
county or municipal corporation may provide, by law, for: 27
(1) the AMOUNT AND duration of the tax credit; 28
(2) regulations and procedures for the application and uniform processing 29
of requests for the tax credit; 30
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(3) the definition of surviving spouse and the amount and duration of the 1
tax credit for the surviving spouse; 2
(4) notwithstanding subsection (a)(2)(ii)2 of this section, eligibility criteria 3
for the credit allowed under this section that limits the credit to individuals described under 4
subsection (a)(2)(ii)1 of this section; 5
(5) ADDITIONAL ELIGIBILITY CRITERIA, INCLUDING CRITERIA BASED 6
ON INCOME AND DISABILITY RATING; and 7
(5) (6) any other provision necessary to carry out the tax credit under 8
this section. 9
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 10
1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026. 11
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.