Bill > HB161

This bill allows local governments in Maryland, specifically the Mayor and City Council of Baltimore City or the governing body of a county or municipal corporation, to offer a property tax credit to owners of real property. This credit can be granted if the property's use has been changed from a retail service station to another retail use, a residential use, or a combination of both. The primary purpose of this tax credit is to help offset the costs associated with removing underground storage tanks and cleaning up any contamination they may have caused. Local governments have the authority to determine the amount and length of the tax credit, establish additional requirements for eligibility, and set up the procedures for applying for and processing these credits. Additionally, the state will reimburse these local governments for 50% of the property tax revenue they would have otherwise collected if the tax credit had not been applied. The bill defines a "discount store" as a retail store selling a variety of convenience and consumer goods where most items cost $5 or less, and clarifies that neither discount stores nor self-service storage facilities qualify for this tax credit. This legislation is set to take effect on June 1, 2026, and will apply to all tax years beginning after June 30, 2026.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0161?ys=2026RS