Bill > HB1214

This bill establishes new provisions for property tax credits for first-time homebuyers in Maryland by defining a first-time homebuyer as an individual who is a Maryland resident and has never previously held a legal interest in a dwelling in any state. The bill modifies the existing property tax code to create a special provision for first-time homebuyers, allowing them to receive a property tax credit beginning with the first taxable year in which they acquire a legal interest in a dwelling. For the first taxable year of ownership, the "taxable assessment" will be calculated using the previous owner's property tax assessment, adjusted for any revaluation increases. The bill also updates references in other sections of Maryland tax law to align with the new definition of a first-time homebuyer. The changes are set to take effect on June 1, 2025, and will apply to all taxable years beginning after June 30, 2025, providing a clear pathway for new homeowners to receive property tax credits and potentially reduce their tax burden during their initial years of homeownership.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1214?ys=2025RS