Bill > HB1178

This bill modifies Maryland's property tax laws to give the Mayor and City Council of Baltimore City more flexibility in setting property tax rates. Specifically, the bill allows Baltimore City to set special property tax rates for different classes or subclasses of properties that are subject to county property tax, which was previously not explicitly permitted. Currently, property tax rates are generally required to be uniform, with some exceptions for vacant or blighted properties. The new legislation removes the restriction that would have required a single tax rate for most properties, enabling Baltimore City to create more nuanced tax structures that could potentially incentivize certain types of property development or address specific urban challenges. The bill will take effect on June 1, 2025, and will apply to taxable years beginning after June 30, 2025, giving local government officials time to prepare and implement these new tax-setting capabilities. By providing this additional taxing authority, the bill aims to give Baltimore City more tools for managing its local property tax system and potentially addressing urban development goals.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1178?ys=2025RS