On February 4, Legislative Director Kevin Kinnally testified before the Ways and Means Committee to support HB 330 – Property Tax – Improvements to Property Adjacent to Rail Stations – Subclass, Special Rate, and Penalty with amendments.
This bill allows counties to create a new subclass of real property for improvements within one mile of a rail station and establish a special property tax rate for those properties.
Under the bill, any additional revenue generated from the special property tax rate would be split evenly between the State’s Transportation Trust Fund and the local jurisdiction. This structure diverts local tax revenues to the State, even though counties are responsible for land use planning, infrastructure, and public services in these areas.
This bill gives local governments a flexible tool to drive transit-oriented development and strengthen economic growth. However, MACo urges amendments to ensure every dollar of locally generated revenue directly benefits county residents and services.
MACo supports strategic land use and infrastructure investment near transit hubs while ensuring counties retain control over local tax policy. Counties need tools that provide flexibility and promote economic development without ceding control of locally raised revenues.
HB 330’s cross-file, SB 472, was heard on February 12 in the Senate Budget and Taxation Committee. Kevin Kinnally testified in support of this bill with amendments.
SB 472 was heard in the opposite chamber, the Ways and Means Committee, on March 25. MACo submitted written testimony in support of this bill with amendments.
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