The segments below provide a brief overview of MACo’s work on tax policy in the 2024 General Assembly.
The General Assembly routinely considers proposals to change tax structures, often seeking to stimulate economic growth, encourage beneficial activities, or attract and retain residents. These proposals sometimes focus exclusively on the state’s tax structure but sometimes extend to local revenues.
In general, MACo stands for local self-determination. Counties, led by their elected leaders who are directly accountable within the community, are best positioned to make decisions on local affairs – ranging from land use to budget priorities. MACo steadfastly guards this local autonomy and frequently advocates against statewide solutions that mandate county compliance or override local decision-making.
Maryland’s 446th legislative session convened amidst a substantial concern over the State’s fiscal situation, with weakened revenues and cost increases for many services at every level of government. Despite the budgetary limitations, many policy issues received a full debate, with many resolutions arising from the 90-day annual process. MACo’s legislative committee guided the association’s positions on hundreds of bills, yielding many productive compromises and gains spanning counties’ uniquely broad portfolio.
Follow these links for more coverage on our Conduit Street blog and Legislative Database.
Income Taxes
MACo opposed dozens of subtraction modification bills, as subtraction modifications (income tax reductions) affect the taxable income base, which flows through to county revenues. Instead, MACo advocates for state income tax credits, which provide a similar benefit to residents without unnecessarily constraining local budgets. These bills would have slashed local revenues by billions of dollars with zero local input.
None of these bills passed in the 2024 session.
MACo supported HB 470- County Income Tax – Rate and Income Brackets – Alterations. This bill would have given counties the necessary tools and flexibility to levy the local income tax with greater equity and fairness.
HB 470 properly allowed counties to tailor local revenue structures to serve and react to community needs. In 2021, the General Assembly approved legislation authorizing counties to levy the local income tax on a bracket basis – standard practice for state and federal tax regimes. While some counties have successfully enacted local brackets, others cannot achieve a more equitable system without jeopardizing significant resources for schools, housing, health, public safety, roadway maintenance, and other essential public services.
While the enabling legislation envisioned allows counties to enact revenue-neutral rate structures, more than two-thirds of Marylanders live in counties that levy the maximum income tax of 3.2%. Absent the flexibility to exceed the cap under limited circumstances, these counties cannot reduce the tax burden on low-to-moderate income earners while remaining revenue-neutral.
As such, for counties electing to impose the local income tax on a bracket basis, this bill raised the maximum rate from 3.2% to 3.7% for specified taxpayers. However, the bill did not advance from the House Ways and Means Committee and ultimately failed to pass in the 2024 session.
Bill Information | MACo Coverage
Property Taxes
MACo supported HB 63/SB 6- Property Tax – Credit for Dwelling House of Disabled Veterans – Alterations with amendments.
As introduced, SB 6 expanded eligibility for property tax credit which many local jurisdictions have already adopted. MACo contends that any state legislation to expand eligibility for existing local-option tax credits, like this bill, should be subject to the discretion of the local governing body.
As such, MACo sought amendments to clarify that this expansion is itself subject to a local option, The bill passed the General Assembly with MACo’s amendments.
Bill Information | MACo Coverage
MACo supported HB 12/SB 67- Property Tax Credit – Retail Service Station Conversions. This bill would have enabled local governments to enact a property tax credit for specified converted retail stations.
In addition, to the extent provided in the State budget, it would have required the State to reimburse local governments for half of the foregone property tax revenue resulting from enacting the credit. This bill did not pass in the 2024 session.
Bill Information | MACo Coverage
MACo supported HB 174/SB 279- Property Tax Assessment – Unsuccessful Appeals to Maryland Tax Court – Fee. By applying a reasonable fee for property tax appeals on substantial income-producing properties, this bill sought to make meaningful progress toward eliminating a means of tax evasion that benefits commercial and industrial property owners at the expense of other property owners and residents.
The bill passed the House but failed to advance in the Senate and ultimately did not pass in the 2024 session.
Bill Information | MACo Coverage
MACo supported HB 226/SB 269- Property Tax Credit – Permanent Supportive Housing – Established with amendments. This bill would have established a property tax credit against the State, county, and municipal real property tax for specified permanent supportive housing. MACo sought amendments to make the bill enabling for county governments.
This bill was withdrawn by its sponsor and did not pass the 2024 session.
MACo supported HB 248/SB 576- Property Tax – Assessment Appeal Boards and Supervisors – Regional Organization with amendments. This bill sought to establish regions for Maryland State Department of Assessments and Taxation (SDAT) supervisors of assessments and property tax assessment appeal boards (PTAAB).
As current law requires a supervisor and PTAAB for each county, MACo urged amendments to require each affected county’s governing body to sign off on a proposal to appoint a regional supervisor or establish a regional PTAAB to oversee multiple jurisdictions. This bill did not pass in the 2024 session.
Bill Information | MACo Coverage
MACo opposed HB 361/SB 640- Property Tax Exemption for Community Solar Energy Generating Systems – Limitation on Generating Capacity – Alteration. This bill would have increased the limitation capacity of solar energy generating systems exempt from personal property tax. The sponsor withdrew the bill, and thus, it did not pass in the 2024 session.
MACo supported HB 401/SB 369–Property Tax Exemption–Rental Income Reporting Requirement. This bill would have promoted taxpayer equity by ensuring that tax-exempt treatment of specified real property is based on its actual use rather than its nominal ownership. This bill did not pass in the 2024 session.
Bill Information | MACo Coverage
MACo opposed HB 640/SB 869- Property Tax – Improvements on Agricultural Land – Assessment. This bill generally required an improvement on land that qualifies for an agricultural use assessment to be assessed as agricultural property under specified circumstances.
This bill sought to create a new standard for assessing a large and fast-growing commercial property segment. Doing so would slash the assessable base by billions of dollars. Local property tax revenues would decrease massively, jeopardizing limited funds for public schools, health, infrastructure, public safety, and other essential services. This bill was withdrawn by its sponsor and did not pass in the 2024 session.
MACo supported HB 765/SB 321–Property Tax – Credit for Hotel or Residential Development Projects. HB 765/SB 321 aims to incentivize economic development and increase affordable housing stock by enabling local governments to enact a property tax credit for specified hotel and residential development projects. This bill passed the Maryland General Assembly.
Bill Information | MACo Coverage
MACo opposed HB 862/SB 639, Property Tax Exemption—Disabled Veterans—Service-Connected Disability. By significantly expanding an existing property tax exemption for disabled veterans and surviving spouses, this bill would have had a sweeping, adverse effect on local revenues sorely needed to fund schools, housing, public health, public safety, roadway maintenance, and other essential public services. This bill did not pass in the 2024 session.
Bill Information | MACo Coverage
MACo supported HB 44/ SB 343- Renters’ Property Tax Relief and Homeowners’ Property Tax Credit Programs – Gross Income and Assessed Value Limitations – Alterations with amendments. This bill would have altered the definition of “gross income” to exclude certain public assistance received in a cash grant for purposes of the renters’ property tax relief program and the homeowners’ property tax credit program. It would have increased the combined gross income limit used to determine eligibility for the tax credits and increased − from $300,000 to $450,000 − the maximum assessed value of a dwelling on which the homeowners’ property tax credit is calculated. This bill did not pass in the 2024 session.
MACo supported HB 66- Property Tax Credits – Public School Employees, Health and Safety Improvements, and Property Used for Local Housing Programs. This bill would have enabled local governments to enact specified property tax credits for employees of local school systems, safety improvements to apartment or condominium buildings, and to incentivize local housing programs serving homeless individuals or families. This bill did not pass the 2024 session.
Bill Information | MACo Coverage
MACo opposed HB 220, Homestead Property Tax Credit—Calculation of Credit for Dwelling Purchased by First-Time Homebuyer. HB 220 would have made property tax savings under the Homestead Property Tax Credit “transferrable” to first-time Maryland homebuyers. This would have dramatically undermined the longstanding policy purpose of the credit—to ensure stability in tax bills after purchase. This bill did not pass in the 2024 session.
Bill Information | MACo Coverage
MACo supported HB 919–Property Tax–County Authority to Set Special Rates. This bill authorizes county governments to impose a separate tax rate on specified subclasses of real property, as identified and approved by the General Assembly, to fund local transportation priorities and public schools. The bill did not pass in the 2024 session but was referred to an interim study by the House Ways and Means Committee.
Bill Information | MACo Coverage
MACo opposed HB 1018- Manufacturing Business Personal Property Tax – Exemption. This bill would have exempted from the personal property tax all personal property in the possession of a person engaged in a manufacturing business that is a small- or medium-sized enterprise. MACo opposed this bill because it would have undermined county revenue structures and depleted limited local funds for public health, schools, public safety, roadway maintenance, and other essential public services for Maryland families. This bill did not pass in the 2024 session.
MACo opposed HB 1324- Homestead Property Tax Credit – Eligible Properties – Alteration. HB 1324 would have opened up property tax savings under the Homestead Property Tax Credit to include additional residences. This would have dramatically undermined the longstanding policy purpose of the credit – to ensure stability in tax bills after purchasing a principal residence. This bill did not pass in the 2024 session.
Bill Information | MACo Coverage
MACo took no position on HB 1516- Real Property Assessments – Notice of Change in Value or Classification – Time Period, but submitted a Letter of Information providing county input. This bill proposes a one-time adjustment to the property reassessment notice timetable to remedy the administrative mistakes with the State Department of Assessments and Taxation’s management of the owner notification process. This bill passed the Maryland General Assembly.
Tax Sales
MACo supported HB 16- Tax Sales – Homeowner Protection Program – Funding with amendments. This bill increases awareness and establishes a new funding source for the Homeowner Protection Program (HPP). The Program is one of the most effective tools to help homeowners facing tax sale, offering potential cost avoidance and providing help like payment assistance, foreclosure mediation, and other services. This bill passed the Maryland General Assembly.
Bill Information | MACo Coverage
MACo supported HB 243—Property Tax—Tax Sales—Revisions with amendments. This bill generally would have made wholesale changes to Maryland’s tax sale process. MACo sought amendments to address administrative hurdles and awkward implementation that render the current bill unworkable for county governments required to conduct tax sales under state law. This bill did not pass in the 2024 session.
Bill Information | MACo Coverage
MACo supported HB 751- Sale of Residential Real Property – Offers to Purchase and Transfer Tax. This bill would have created a process to enable local buyers to purchase properties to become owner-occupied before the sale becomes available to other actors who may seek to acquire the property for different uses. It would have also created a tax disincentive for residential properties converted to a use other than owner-occupied residence. This bill did not pass in the 2024 session.
Bill Information | MACo Coverage
MACo supported HB 1306, Admissions and Amusement Tax—Food and Beverages. This bill would have authorized local governments to impose a nominal levy on specified gross receipts derived from the sale of food or beverages. However, the bill was withdrawn and thus did not pass in the 2024 session.
Taxes on Public Utilities/Renewable Energy
MACo supported HB 1133/SB 505—Public Utilities—Transportation Network Service—Assessment Cap Increase. This bill would have increased the statutory limit on the per-trip assessment that local governments may impose on specified ride-sharing services from 25 cents to 50 cents. However, it did not pass in the 2024 session.
Bill Information | MACo Coverage
MACo opposed HB 1435/SB 783- Renewable Energy – Net Energy Metering Aggregation, Solar Renewable Energy Credits, and Taxes on Solar Energy Generating Systems (Brighter Tomorrow Act). This bill provides broad tax incentives for specified solar projects, increases the maximum generating capacity for specified aggregated net-metered generating facilities, and creates an incentive program to offer certain certified systems additional solar renewable energy credits (SRECS). While MACo appreciated the intent of this bill, counties were concerned with the carryover county fiscal effects of this legislation and preferred approaches that provide local autonomy to determine the best way to provide tax incentives rather than those that mandate reductions in local revenue sources. This bill passed the Maryland General Assembly.
MACo took no position on HB 925, Vehicle Excise Tax—Rate Increase, but submitted a Letter of Information providing county input. This bill would have increased the vehicle excise tax from 6% to 6.5%, presenting a mechanism to address a multibillion-dollar budget shortfall in the State’s consolidated Transportation Trust Fund. This bill did not pass in the 2024 session.
Bill Information | MACo Coverage
MACo took no position on HB 1215, Transportation Financing—Retail Delivery Fee and Transportation Network Company Impact Fee (Transportation Funding Act of 2024), but submitted a Letter of Information providing county input. This bill would have allocated certain revenues from a retail delivery fee and a transportation network company impact fee to pay interest on transportation bonds. The bill did not pass the 2024 session.
More information on tax-related legislation tracked by MACo during the 2024 legislative session.
