The segments below provide a brief overview of MACo’s work on tax policy in the 2026 General Assembly.
The General Assembly routinely considers changes to tax structures to spur economic growth, encourage certain activities, or attract and retain residents. Some proposals focus only on State taxes, while others extend to local revenues and directly affect county budgets.
MACo supports local decision-making. Counties, led by elected officials accountable to their communities, make informed choices on local priorities, from land use to budget decisions. MACo protects that authority and opposes statewide policies that mandate county action or override local control.
Maryland’s 448th legislative session opened with significant concern about the State’s fiscal outlook, as revenues softened and service costs increased at every level of government. Lawmakers still debated a wide range of policy issues during the 90-day session. MACo advocated for practical, balanced solutions, and its Legislative Committee set the association’s positions on hundreds of bills across policy areas, securing meaningful compromises that reflect counties’ broad responsibilities.
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MACo supported HB 805 – Building Homes Act. This bill will authorize local governments to grant a property tax credit for specified affordable dwellings, providing counties with a flexible, locally controlled tool to help close financing gaps and expand access to sustainable homeownership, while ensuring properties remain affordable for at least 20 years. This bill passed the Maryland General Assembly.
Bill Information | MACo Coverage
As amended, MACo took no position on HB 753 – Tax Sales – Homeowner Protections – Revisions. This bill proposes various changes to Maryland’s tax sale system that aim to bolster homeowner protections and expand access to the Homeowner Protection Program. MACo worked with the bill sponsor to address crucial fiscal and operational concerns. This bill passed the Maryland General Assembly.
Bill Information | MACo Coverage
MACo supported HB 161/SB 58 – Property Tax Credit – Retail Service Station Conversions. The bill authorizes local governments to grant a property tax credit against the county or municipal property tax when a property converts from a retail service station to another retail use, a residential use, or a mixed retail and residential use, as specified. HB 161 addresses redevelopment barriers by giving counties a flexible option to incentivize redevelopment for retail, residential, or mixed-use purposes. This bill passed the Maryland General Assembly.
Bill Information | MACo Coverage
MACo supported HB 1142 – Task Force to Modernize County and Municipal Revenue Structures. This bill establishes a Task Force to Modernize County and Municipal Revenue Structures to review and recommend updates to Maryland’s local revenue framework, creating an opportunity to thoughtfully examine and update Maryland’s local revenue system to promote long-term stability, fairness, and sustainability. This bill passed the Maryland General Assembly.
Bill Information | MACo Coverage
MACo supported HB 363/SB 468 – Local Government – Grant for Recipients of State Child Tax Credit – Authorization. This bill will authorize counties to offer a local child tax credit against the county income tax for very low-income families with federal adjusted gross income below $15,000, directing relief to residents facing the most acute financial strain, while limiting counties’ fiscal exposure if they choose to participate. This bill passed the Maryland General Assembly.
Bill Information | MACo Coverage
MACo supported HB 842 – Property Tax Credit – Surviving Spouse of Military Service Member with amendments. This proposal eliminates the current two-year eligibility requirement for a specified property tax exemption. Counties cautioned that expanding mandatory exemptions without local discretion creates a direct and lasting impact on their primary revenue source. This bill passed the Maryland General Assembly.
Bill Information | MACo Coverage
As amended, MACo supported SB 980 – Property Tax – Credit for Dwelling House of Disabled Veterans and Surviving Spouses – Alterations. This bill would have amended the income and disability rating thresholds for a local-option property tax credit for disabled veterans and surviving spouses. MACo worked with the bill Sponsor to ensure local governments retain full authority to determine how the credit operates within their existing programs. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
As amended, MACo took no position on HB 571/SB 369 – Nonprofit Housing Corporations – Taxes and Special Assessments Exemptions – Alterations. This bill will support affordable housing development by expanding property tax relief for specified nonprofit housing entities. As originally drafted, counties raised concerns about a broad, ownership-based tax benefit that limits local discretion. MACo worked with the bill Sponsor to address these concerns and ensure alignment with local affordable housing efforts. This bill passed the Maryland General Assembly.
Bill Information | MACo Coverage
MACo opposed HB 124 – Income Tax – Subtraction Modification – Losses From Theft or Fraud. This bill would have allowed an income tax subtraction for losses from retirement assets resulting from theft or fraud. Having entered this session facing heightened economic uncertainty and rising costs, counties warned that this proposal could expand local fiscal responsibilities without reliable, ongoing funding. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo opposed HB 1035 – Income Tax – Subtraction Modification – Overtime Compensation. This bill would have allowed Maryland residents to deduct certain overtime pay from their state income tax, effectively lowering the tax they owe on those extra earnings. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo opposed HB 13/SB 148 – Income Tax – Credit for 9-1-1 Specialist Retirement Income (Supporting Our 9-1-1 Specialists Act). This bill would have expanded the current income tax subtraction modification for public safety workers, including retirement income for 9-1-1 specialists. In general, MACo stands for local self-determination and opposes this state-mandated reduction in local revenue sources. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo opposed HB 707 – Income Tax – Subtraction Modification – Retirement Income. This bill would have allowed certain individuals over 65 and certain disabled individuals to deduct certain types of retirement income from their taxable income. MACo continues to advocate for State tax incentives to be enacted as “local option” offerings, allowing counties maximum flexibility to tailor local policies to meet local needs and priorities. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo opposed HB 857 – Income Tax – Subtraction Modification for Military Retirement Income – Individuals Under the Age of 55. This bill would have increased the amount of a subtraction modification under the Maryland income tax for military retirement income for individuals under 55. Counties resisted this state-mandated change that precludes local input. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo opposed HB 761 – Income Tax – Subtraction Modification for Military Retirement Income (Keep Our Heroes Home Act). This bill would have increased the existing maximum subtraction modification for military retirement income. MACo opposed these state-mandated reductions in local revenue sources. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo opposed HB 653/SB 607 – Income Tax – Subtraction Modification for Public Safety Retirement Income – Amount. This bill would have increased the state income tax deduction for retired public safety officers. MACo resisted this one-size-fits-all policy that would have overrode local decision-making. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo opposed HB 201 – Income Tax – Tips or Gratuities – Subtraction Modification (No Income Taxes on Tips Act). This bill would have created a tax deduction for tips or gratuities earned in specific jobs, such as working in a restaurant, bar, or hotel, or providing taxi or passenger services. Again, MACo opposed these state-mandated reductions in local revenue sources. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo supported HB 294/SB 137 – Personal Property Tax – Exemptions for Low Assessment – Alteration. The bill would have preserved tax relief for small businesses while allowing the State Department of Assessments and Taxation (SDAT) to collect basic eligibility information, ensuring proper oversight without adding unnecessary burdens. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo supported HB 840/SB 767 – Property Tax – Credit for Commercial Buildings Rented to Small Businesses. This bill would have authorized local governments to grant a property tax credit for commercial buildings rented at fair market value to small businesses located in an Arts and Entertainment District or a Main Street Maryland community. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
As amended, MACo supported SB 980 – Property Tax – Credit for Dwelling House of Disabled Veterans and Surviving Spouses – Alterations. This bill would have amended the income and disability rating thresholds for a local-option property tax credit for disabled veterans and surviving spouses. MACo worked with the bill Sponsor to ensure local governments retain full authority over the credit. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo supported HB 1611 – Property Tax – Credit for Dwelling House of Disabled Veterans and Surviving Spouses – Income Eligibility. This bill will authorize local governments to set income eligibility for an existing local-option property tax credit for specified disabled veterans and surviving spouses. HB 1611 proposes a straightforward but meaningful change: removing the statewide income cap and instead allowing counties and municipalities to establish eligibility criteria through local law. This bill passed the Maryland General Assembly.
Bill Information | MACo Coverage
MACo opposed HB 1482 – Property Tax – Credit for Dwelling House of Disabled Veterans and Surviving Spouses – Revisions. HB 1482 would have converted a discretionary local tax credit into a mandatory statewide requirement — while significantly expanding eligibility and benefit levels — effectively creating a substantial unfunded mandate. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo submitted a letter of information on SB 117 –Property Tax – Credit for Surviving Spouse of Fallen Public Safety Officer or Judicial Officer – Alteration. This bill would have authorized counties to offer a property tax credit to surviving spouses of fallen public safety officers or judicial officers who have remarried. MACo guided the on-the-ground local fiscal realities and warned of the impacts of State-mandated tax exemptions. This bill did not pass in the 2026 session.
MACo submitted a letter of information on HB 644 – Property Tax – Exemption for Dwellings of Surviving Spouses of Disabled Veterans – Application. This bill would have expanded Maryland’s property tax exemption for the surviving spouses of deceased veterans. MACo highlighted the direct local fiscal consequences of any State-mandated expansion of tax exemptions. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo opposed HB 652 – Property Tax – Homestead Property Tax Credit – First-Time Homebuyer. This bill would have established a new Homestead Property Tax Credit for first-time homebuyers and imposed a significant unfunded mandate on county governments by requiring new property tax relief without local authority, local flexibility, or offsetting revenue. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo supported HB 1088/SB 735 – Property Tax – Petition to Review Value of Commercial Real Property. This bill would have authorized counties to file a petition for review of the assessed value of specified commercial real property when that property sells for at least 20% more than its prior sales price. The bill sought a narrow, objective standard for local governments to initiate a review when a qualifying commercial sale demonstrates a substantial increase. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo opposed HB 1518 – Property Tax Assessments – 5-Year Assessment Cycle. This bill would have altered Maryland’s real property assessment cycle from a three-year to a five-year review and adjusted the phase-in schedule accordingly, creating a longer lag between market value changes and the revenues counties rely on to meet rising costs. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo supported HB 1302 – Property Tax Credit – Disabled Public Safety and Judicial Officers, Surviving Spouses, and Cohabitants – Eligibility with amendments. This bill would have altered eligibility for a local-option property tax credit for disabled public safety officers and judicial officers, and surviving spouses or cohabitants of fallen officers, by repealing the current Maryland domicile requirement. County amendments worked to ensure that all eligibility standards remained subject to local law and that jurisdictions retain full authority over how the credit is structured, funded, and implemented. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo supported HB 1427 – Property Tax Credits – Renters’ Tax Credit, Homeowners’ Tax Credit, and Homestead Tax Credit – Altering Eligibility and Amount with amendments. This bill would have increased eligibility thresholds and benefit amounts under the Renters’ Tax Credit and the State Homeowners’ Property Tax Credit. Counties sought targeted amendments to preserve local authority, ensure clear implementation of the new Homestead income cap, and prevent automatic fiscal exposure tied to state-level policy changes. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo supported HB 90/SB 224 – Property Taxes – Authority of Counties to Establish a Subclass and Set a Special Rate for Commercial and Industrial Property. This bill would have authorized county governments, subject to General Assembly approval, to establish specific subclasses of commercial and industrial real property and apply a special property tax rate to support local transportation priorities and public schools. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo supported HB 1595/SB 427 – Property Taxes – Authority of Counties to Establish a Subclass and Set a Special Rate for Personal Property of Data Centers. This bill would have authorized county governments and Baltimore City to create a separate personal property subclass for qualified data center personal property and to apply a special tax rate. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo supported HB 78/SB 547 – Property Taxes – Authority of Counties to Establish Subclasses and Set Separate Rates for Land and Improvements to Land. This bill would have authorized 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. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo supported HB 1224 – Property Taxes – Special Rate for Vacant and Abandoned Property – Charter County Tax Limitation PG 408-26. This bill would have provided charter counties with limited, targeted authority to address vacant and abandoned properties that undermine neighborhoods, reduce property values, and strain local services. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo opposed HB 82/SB 33 – This bill would have created a new tax avoidance pathway that would have directly eroded county revenues, removed local discretion, and provided no public benefit in return. The bill would have expanded existing exemptions to benefit a narrow, sophisticated group of commercial property owners while shifting costs to counties and, ultimately, residents. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo opposed HB 560 – Sales and Use Tax and Property Tax – Exemptions for Data Centers – Repeal. This bill would have repealed counties’ authority to exempt specified data center equipment from the local personal property tax. By repealing both local and State tax exemptions for qualified data center equipment, the bill would have stripped counties of an important policy tool for balancing economic development opportunities with infrastructure demands and long-term fiscal impacts. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo supported HB 176/SB 460 – State Department of Assessments and Taxation and Department of General Services – Property Appraisal Aids – Geographic Images with amendments. This bill would have provided SDAT with advanced digital tools to improve the accuracy, efficiency, and fairness of property assessments. Counties requested amendments to reduce unnecessary costs and ensure a smooth implementation process. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo opposed HB 2/SB 185 – Subtraction Modification – Public Safety Retirement Income. This bill would have expanded the subtraction modification for a public safety employee. In general, MACo opposes state-mandated reductions in local revenue sources such as this. This bill did not pass in the 2026 session.
MACo supported HB 1308/SB 812 – Homeowners’ Property Tax Credit – Eligibility and Calculation – Alterations with amendments. This bill would have increased the assessed-value cap, income brackets, and net-worth and gross-income limits under the State Homeowners’ Property Tax Credit. MACo amendments sought to preserve local authority and prevent automatic cost shifts, ensuring that decisions affecting local budgets remained in local hands. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo opposed HB 903/SB 935 –Income Tax – Subtraction Modification – Donations to Food Banks and Other Charitable Entities. This bill would have allowed Maryland taxpayers to reduce their taxable income by up to $1,000 for donations of food or money made to food banks and other charities. Counties opposed structuring this relief as a mandatory subtraction modification that would reduce local income tax revenues without local approval. This bill did not pass in the 2026 session.
Bill Information | MACo Coverage
MACo opposed HB 258/SB 271 – Income Tax – Subtraction Modification – Retirement Income of Fire, Rescue, and Emergency Services Personnel – Eligibility. This bill will expand eligibility for the public safety employee retirement income subtraction modification to include specified retirement income attributable to service as a fire, rescue, or emergency services personnel of the District of Columbia. MACo encouraged the General Assembly to primarily consider state income tax credits as the best means to incorporate local tax relief into a broader policy. This bill passed the Maryland General Assembly.
Bill Information | MACo Coverage
MACo opposed HB 547 – Income Tax – Subtraction Modification – Enhanced Agricultural Management Equipment. This bill will allow the Secretary of Agriculture to expand the list of tax-deductible enhanced agricultural equipment. In general, MACo stands for local self-determination and opposes this state-mandated reduction in local revenue sources. This bill passed the Maryland General Assembly.
Bill Information | MACo Coverage
MACo opposed HB 478/SB 262 – Income Tax – Subtraction Modification for Classroom Supplies Purchased by Teachers – Alteration. This bill will allow full-time pre-Kindergarten teachers to claim a state income tax deduction for unreimbursed classroom supply expenses. This bill passed the Maryland General Assembly.
Bill Information | MACo Coverage
