Maryland House Bill HB90

Maryland 2026 Regular Session

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

Caption

Property Taxes - Authority of Counties to Establish a Subclass and Set a Special Rate for Commercial and Industrial Property

Impact

The bill introduces changes to existing statutes governing property taxes in Maryland. Under HB 90, counties will be required to grant property tax exemptions or credits for the residential portions of mixed-use properties, ensuring that these residential segments are not disproportionately burdened by the new special rates. This legislative action strikes a balance, allowing local governments greater flexibility in financing improvements while ensuring that residential property owners within mixed-use developments remain protected from inflated tax liabilities.

Summary

House Bill 90 aims to enhance the authority of the Mayor and City Council of Baltimore City, as well as the governing bodies of counties within Maryland, to establish subclasses of real property. Specifically, this legislation allows counties to set special property tax rates for certain commercial and industrial properties. The intent is to facilitate financing for necessary transportation improvements and to support the budgets of county boards of education. This special rate will apply in addition to the general property tax rate and is not intended to affect the residential portions of mixed-use buildings that qualify for certain exemptions or credits.

Contention

Debate surrounding HB 90 may revolve around the potential for disparate impacts on property owners and the ramifications of allowing counties to levy higher taxes on commercial properties. Advocates for the bill argue it provides essential funding for public improvements that benefit the community as a whole, while opponents may express concern that it could lead to increased financial pressures on small businesses and developers. There is a delicate balance that needs to be struck between funding public needs and maintaining a favorable environment for economic growth.