On January 28, Legislative Director Kevin Kinnally testified before the Ways and Means Committee in support of HB 23 – Property Taxes – Authority of Counties to Establish a Subclass and Set a Special Rate for Commercial and Industrial Property.
This bill advances MACo’s Legislative Initiative to broaden local revenue options. It empowers counties to respond to unique fiscal conditions and community-driven priorities.
Arundel County Executive Steuart Pittman, Frederick County Executive Jessica Fitzwater, and Montgomery County Administrative Officer Rich Madaleno joined Mr. Kinnally on a panel supporting the bill.
HB 23 gives counties a focused tool to manage growing demands for infrastructure and education by allowing limited flexibility with local revenue structures. The bill takes a balanced approach to supporting essential services, addressing community priorities, and encouraging sustainable growth.
This bill authorizes counties to apply special property tax rates to commercial and industrial properties only within clear guidelines and with express approval from the General Assembly. This framework ensures that new revenues focus on transportation and education while maintaining fairness and accountability.
Transportation funding continues to lag behind inflation and the rising costs of maintaining critical infrastructure. Similarly, the Blueprint for Maryland’s Future requires counties to make historic investments in public education. As such, the bill provides counties with a responsible and fair mechanism to meet these fiscal challenges while maintaining vibrant and well-supported communities.
The bill includes essential safeguards to promote fairness and prevent disproportionate impacts. Counties may only apply special rates to property subclasses explicitly outlined in state law, and caps on those rates ensure that property owners do not face unreasonable burdens. These guardrails ensure that counties will implement this authority effectively and with careful consideration for equity and transparency.
HB 23 enables counties to address critical transportation and education needs with locally tailored solutions while strengthening the partnership with the State to support strong communities, reliable infrastructure, and high-quality public schools. Accordingly, MACo urges the Committee to issue a FAVORABLE report on HB 23.
HB 23 was heard in the opposite chamber, the Budget and Taxation Committee, on March 27. MACo submitted written testimony in support of this bill.
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