On January 27, Legislative Director Kevin Kinnally testified before the Ways and Means Committee in support of HB 78 – Property Taxes – Authority of Counties to Establish Subclasses and Set Separate Rates for Land and Improvements to Land.
This bill authorizes county governments and Baltimore City to establish subclasses of real property, separating land from improvements, and to apply different real property tax rates to each subclass. The bill provides a measured option to better reflect development patterns and public investment decisions.
By allowing separate tax treatment for land and improvements, counties can encourage redevelopment, support infill growth, and better align revenues with local infrastructure needs and priorities. Further, for jurisdictions with potential housing projects stalled because properties remain unimproved, they may be able to realign local taxes to help spur development where sensible, aligning taxation with pro-housing policies.
Municipal governments already have greater flexibility in setting property tax rates. HB 78 provides counties with a limited, optional split-rate authority, aligned with local decision-making and accountability.
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