Bill > HB1232

This bill allows for economic development projects, defined as new or rehabilitated commercial or multi-family residential properties like hotels, office buildings, retail facilities, or mixed-use developments, located within specific areas of downtown Baltimore City known as the Downtown RISE District, to be exempt or partially exempt from Baltimore City property taxes. To qualify for this exemption, the project owner must demonstrate to the Baltimore City Board of Estimates that an economic analysis of the project, including its financial necessity for a tax break, has been conducted by the city or its designated agency. Crucially, the project owner and the Board of Estimates must then enter into a Payment in Lieu of Taxes (PILT) agreement, which specifies an annual payment the owner will make to the city instead of paying standard property taxes for the duration of the agreement. To be eligible for a PILT agreement, project owners must apply, have building permits issued, and have secured financing for construction by June 30, 2036. The city is also required to report annually to the City Council and the General Assembly on projects with PILT agreements, detailing the economic analysis, job creation, estimated tax generation, and other economic benefits. This legislation is set to take effect on July 1, 2026.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1232?ys=2026RS