Property Taxes - Special Rate for Vacant and Abandoned Property - Charter County Tax Limitation PG 408-26
Summary
HB1224 authorizes the governing body of a charter county in Maryland to impose a special property tax rate on certain vacant and abandoned properties, including vacant lots and improved properties cited as vacant and unfit for habitation or other authorized use. The bill makes clear that this special rate may be set even if it exceeds limits contained in the county charter on property tax rates or total property tax revenues.
The bill also allows a charter county to deposit the property tax revenue generated by that special rate, to the extent it exceeds what would otherwise be permitted under the county charter, into the county general fund. In addition, any county or Baltimore City that adopts the special rate must report annually to the Department of Housing and Community Development and the General Assembly on the rate, the number of affected properties, revenue changes, how the revenue is used, and whether the properties are viable for adaptive reuse and conversion.
Impact
HB1224 amends Maryland Tax-Property law to create an explicit exception to county charter tax limitations for special tax rates on vacant and abandoned property. It preserves the general rule that counties and Baltimore City set property tax rates, but adds authority for charter counties to exceed local charter caps when taxing qualifying vacant properties and to retain the incremental revenue in the county general fund. The bill also adds reporting requirements that increase state oversight and data collection regarding the use and effects of the special rate.
Sentiment
The bill appears to have received broadly favorable treatment in the House, where it passed third reading by a wide margin (122-2) and was reported favorably from committee. The available context suggests general support for using property tax policy as a tool to address vacant and abandoned properties and encourage redevelopment or reuse. The bill was still pending a Senate hearing at the time of the provided history, so no Senate vote sentiment is reflected here.
Contention
The main point of contention is the bill’s override of county charter tax caps. Supporters likely view the special rate as a targeted tool to discourage vacancy, generate revenue, and promote adaptive reuse of blighted properties, while opponents may be concerned about local tax-limit erosion, higher burdens on property owners, or the breadth of authority granted to charter counties. The reporting requirements and the focus on whether properties are viable for adaptive reuse suggest an effort to balance enforcement with redevelopment goals.