Bill > HB23

This bill allows the Mayor and City Council of Baltimore City or the governing body of a county to establish a new subclass of real property specifically for commercial and industrial properties, and set a special property tax rate for these properties under certain conditions. The special tax rate can only be imposed for two specific purposes: within a special taxing district to finance transportation improvements or on a countywide basis to fund the approved budget of the county board of education. The special rate is limited to a combined total of 12.5 cents per $100 of assessed value and will be in addition to the general real property tax rate. The bill also provides protections for mixed-use properties, ensuring that the residential portion of such properties can receive an exemption or credit from the special tax rate. If a county implements this special rate, they must report details to the state, including the rate amount, the number of properties affected, and the revenue generated. The bill will take effect on June 1, 2025, and apply to taxable years beginning after June 30, 2025, giving local governments a new tool for targeted property tax policy and potential revenue generation.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0023?ys=2025RS