Property Taxes - Tax Sales, Legacy Protection Program, and Tax Credits
HB1148 creates a new Heirs Legacy Protection Program within the State Tax Sale Ombudsman’s office to help heirs who inherit a deceased homeowner’s dwelling keep the property, become the record title holder, and avoid losing the home in a tax sale. The program requires the Ombudsman to notify heirs when a homeowner who received certain property tax credits has died, provide plain-language guidance on probate and title transfer, coordinate with registers of wills, and offer grants to legal services organizations and directly to heirs to help cover probate fees, inheritance taxes, and related costs. The bill also expands who can be treated as a “homeowner” for purposes of the Ombudsman’s services to include estates, personal representatives, and certain heirs or legatees.
The bill also amends Maryland’s homeowners’ and homestead property tax credit laws so that an heir who is not yet listed as the record title holder may still receive the credit if the heir files the required application and affidavit, submits a death certificate, and otherwise meets eligibility rules. That temporary eligibility is limited to three taxable years; after that, the heir must be shown in the land records as the title holder to continue receiving the credit. The bill further exempts the new Heirs Legacy Protection Fund from the general rule that interest on State money goes to the General Fund, and it establishes dedicated funding for the program from State appropriations and county contributions derived from interest on overdue property taxes.
The overall sentiment reflected in the bill’s progress was favorable. It passed the House and Senate with strong margins and was ultimately approved by the Governor as Chapter 718. The absence of recorded committee transcript opposition, combined with broad floor support, suggests the measure was generally viewed as a consumer- and homeowner-protection bill aimed at preventing involuntary loss of inherited homes and helping families navigate probate and tax-credit requirements.
The main points of contention are likely to have centered on administration and funding rather than the program’s purpose. The bill requires counties to collectively contribute $500,000 annually to the new fund, and it uses interest on overdue property taxes to finance the program, which could raise concerns for local governments and tax collectors. Another possible issue is the temporary nature of the tax-credit eligibility for heirs who have not yet cleared title, since the bill gives them only a three-year window before record title ownership becomes mandatory for continued credit eligibility. Overall, however, the legislation appears designed to reduce tax-sale displacement and provide a clearer path for heirs to preserve inherited homes.
HB1148 amends the Tax-Property Article to create a new statutory program for heirs of deceased homeowners, expand the State Tax Sale Ombudsman’s duties, and modify eligibility rules for the homeowners’ and homestead property tax credits. It also amends State finance law to protect the Heirs Legacy Protection Fund from the general interest-sweeping rule and to dedicate State and county funding to the program. The bill affects heirs, estates, personal representatives, legal aid providers, county governments, and property tax administrators by adding notice, outreach, grant, and application requirements tied to inherited dwellings and tax-sale prevention.
The bill appears to have been broadly supported and viewed positively by both chambers, as shown by strong third-reading vote totals and final enactment. The policy goal—helping heirs keep inherited homes and avoid tax sale—likely resonated across party lines as a housing stability and property preservation measure. No committee transcript was provided, but the legislative outcome suggests limited opposition to the bill’s core purpose.
The most notable potential contention involves funding: counties are required to contribute to the new fund, and the program is financed through interest on overdue property taxes, which may concern local governments and tax collection officials. A second area of possible debate is administrative complexity, since the bill requires notices, affidavits of heirship, probate guidance, legal-service grants, and coordination with registers of wills and county land records. Some may also have questioned the temporary nature of heir eligibility for tax credits before title is formally transferred, though the bill provides a transition period intended to prevent immediate loss of benefits.