Maryland House Bill HB78

Maryland 2026 Regular Session

• Introduced: 1/14/26
• Refer: 1/14/26

Caption

Property Taxes - Authority of Counties to Establish Subclasses and Set Separate Rates for Land and Improvements to Land

Impact

By enabling counties to set distinct tax rates for subclasses of property, this bill could lead to more equitable taxation practices tailored to local conditions. For instance, properties classified as vacant or unfit for habitation could be taxed differently from improved properties. This differentiation could incentivize property development and renovations, potentially addressing issues related to urban blight and housing shortages. Importantly, the changes would apply uniformly within each taxing jurisdiction, supporting fair taxation practices across similar properties.

Summary

House Bill 78 aims to give counties and the Mayor and City Council of Baltimore City the authority to establish subclasses of real property. This includes the ability to differentiate between land and improvements to land, allowing for separate property tax rates for each subclass. The legislation is a significant shift in property tax policy, as it permits local governments to tailor tax rates to specific property classifications, potentially enhancing their capacity to manage property tax revenues more effectively.

Contention

Potential points of contention surrounding HB 78 include concerns about how different tax rates might impact property owners and the development landscape within counties. Critics may argue that separate tax rates could disproportionately affect lower-income property owners or those with unrenovated properties, leading to financial strains. Additionally, there are worries about whether this increased local authority could lead to inconsistent tax policies that might confuse taxpayers or create disparities between neighboring jurisdictions.