Property Tax - Residential Real Property - Moratorium on Assessment Increases
HB 826 would place a temporary moratorium on increases in the assessed value of residential real property in Maryland for taxable years beginning after June 30, 2026, and before July 1, 2029. During that period, a home’s assessed value, including phased-in value, could not rise above the prior year’s value unless one of several specified exceptions applies.
The exceptions allow reassessment upward if the owner initiates a zoning change, the property’s use or character changes, substantial improvements add at least $100,000 in value, an assessment error is corrected, a residential use assessment ends under existing law, or the property is subdivided. The bill takes effect June 1, 2026, and would temporarily limit how quickly residential property tax assessments can grow statewide.
The bill would amend Maryland property tax administration by restricting assessors from increasing the assessed value of residential real property for a three-year period, subject to enumerated exceptions. This would affect homeowners, local governments, and county tax assessment offices by slowing assessment growth and potentially reducing or delaying property tax revenue tied to rising home values. It would also interact with existing Tax-Property Article provisions governing phased-in value, residential use assessments, zoning changes, and subdivision-related reassessments.
Because there are no committee transcripts or recorded votes provided, the available record does not show formal debate or a measured vote-based sentiment. Based on the bill’s sponsorship and subject matter, the measure appears to be framed as taxpayer relief and a brake on rising housing tax burdens, which would likely be viewed favorably by homeowners concerned about affordability. At the same time, it would likely draw concern from local governments and tax administrators because of the revenue and assessment limitations it imposes.
The main point of contention is the tradeoff between homeowner tax relief and local revenue stability. Supporters are likely to argue that freezing assessment increases would protect residents from sharp property tax hikes driven by rising home values, especially during a period of housing-cost pressure. Opponents are likely to focus on the fiscal impact on counties and municipalities, as well as the fairness of limiting reassessments even when market values rise, while also noting the bill’s exceptions for improvements, zoning changes, and other property-specific events.