Bill > HB652

This bill establishes a specific method for calculating the "taxable assessment" for first-time homebuyers when determining their homestead property tax credit, which is a reduction in property taxes. Previously, the taxable assessment was generally based on the previous year's assessment, adjusted for phased-in increases from revaluations, minus any existing credits. However, for a first-time homebuyer in their initial year of property ownership, this bill mandates that the taxable assessment will be based on the previous owner's assessment from the preceding taxable year, also adjusted for phased-in increases and minus any authorized credits. This change is intended to provide a more favorable calculation for individuals purchasing their first home, ensuring they receive the homestead property tax credit based on the property's prior assessment rather than potentially a newly reassessed higher value. The bill also makes conforming changes to definitions in other sections of the tax code to reflect this updated calculation.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0652?ys=2026RS