Following the completion of the 2026 Maryland General Assembly legislative session, Governor Wes Moore recently conducted his bill-signing ceremonies, enacting statutes that impact numerous practice areas.
June 1, 2026, marks the official effective date for the many of the new laws.
To help attorneys seamlessly integrate these updates into their daily work, the Maryland State Bar Assocition provides the following legislative update, organized by practice area. To ensure thorough coverage, certain multi-faceted bills are cross-referenced and appear under multiple practice areas.
Much of the llegislation passed this year will take effect later this summer on July 1, 2026, or this autumn on October 1, 2026.
Access to Justice:
SB12—Residential Rental Apartments - Air-Conditioning Requirement
This bill requires landlords of apartment buildings with 10 or more individual dwelling units to provide air-conditioning, with specific timelines and conditions. For newly constructed units, the requirement begins on June 1, 2026. For existing units, landlords must provide air-conditioning if they previously equipped the unit with it or if the lease required it, starting June 1, 2026. Additionally, for units undergoing renovation that involves replacing or substantially upgrading electrical or heating systems, the air-conditioning requirement begins on October 1, 2026. During the cooling season, from June 1 to September 30, landlords must ensure that the temperature in habitable spaces within the unit does not exceed 80 degrees Fahrenheit, either by maintaining it directly or by ensuring the tenant-controlled system is capable of doing so. The bill also clarifies that it applies prospectively, meaning it will not affect construction or renovations for which building permits were issued before the act’s effective date of June 1, 2026.
SB720—Education - Artificial Intelligence - Guidelines, Professional Development, and Collaborative (Artificial Intelligence Ready Schools Act)
This bill, the Artificial Intelligence Ready Schools Act, aims to integrate artificial intelligence (AI) responsibly into Maryland’s K-12 education system by requiring the State Department of Education to provide guidance on AI to schools, educators, parents, and students through an online platform, emphasizing safe, equitable, and ethical use, and promoting AI literacy through computer science education. The Department will also develop guidelines and best practices, and each local school system must appoint a non-instructional coordinator from its central office to manage AI use. Furthermore, the bill establishes the Maryland AI Education Collaborative on Artificial Intelligence in K-12 Education, a diverse group of stakeholders including educators, administrators, parents, students, and representatives from various educational organizations, tasked with studying AI’s use in schools and making recommendations for guidance, professional development, and policy adoption, with the goal of ensuring AI is used effectively and ethically in education.
SB792—Hospitals - Immigration Enforcement Action - Policy Requirement
This bill requires hospitals in Maryland to develop and implement a policy that outlines their procedures when immigration enforcement actions occur on hospital grounds, ensuring patient privacy and the safety of everyone present. Hospitals must make this policy accessible to all their staff members and provide annual training to ensure staff understand and can follow it. The bill also mandates that these policies be consistent with guidance from the Attorney General.
SB1007—Prior Authorizations of State Debt - Alterations
This bill amends prior authorizations of state debt to change grantee names, alter authorized uses of grants, and extend termination dates for various projects.
Administrative Law:
HB274—State Board of Environmental Health Specialists - Sunset Extension
This bill extends the termination date for the State Board of Environmental Health Specialists, meaning the board and its associated regulations will continue to operate until July 1, 2032, instead of their previous expiration date of July 1, 2027. This extension is in line with the Maryland Program Evaluation Act, often referred to as a “sunset law,” which requires state agencies and programs to be periodically reviewed and reauthorized to ensure their continued effectiveness and necessity. The bill also specifies that this change will take effect on June 1, 2026.
HB444—Public Safety - Immigration Enforcement Agreements - Prohibition
This bill prohibits the State of Maryland, its local governments, county sheriffs, and their employees or agents from entering into any “immigration enforcement agreement,” which is defined as a contract or understanding with the federal government that allows state or local entities to enforce civil immigration laws, including those outlined in specific federal statutes like 8 U.S.C. § 1103 and § 1357. Furthermore, any existing immigration enforcement agreements must be terminated immediately upon the bill taking effect, which is set for the date it is enacted as an emergency measure.
HB451—Maryland Zero Emission Electric Vehicle Infrastructure Council - Membership, Duties, and Sunset Repeal
This bill modifies the Maryland Zero Emission Electric Vehicle Infrastructure Council by altering its membership and duties, and importantly, it removes the council’s sunset provision, meaning it will continue to exist indefinitely. The council, which focuses on promoting zero emission electric vehicles (ZEVs) and their infrastructure, will now be required to submit annual reports of its work and recommendations to the Governor and the General Assembly by December 1st of each year, starting in 2026. The bill also clarifies the definition of a "zero emission electric vehicle” to include plug-in electric drive vehicles and removes the specific mention of fuel cell electric vehicles from that definition, while expanding the council’s membership to include more diverse representation from various sectors, including local government, industry, and the public, to better advise on the integration of electric vehicle charging infrastructure.
HB810—Study to Evaluate Blockchain-Based Real Property Lease and Title Recordation and Verification
This bill requires the State Department of Assessments and Taxation, working with various state agencies, law enforcement, legal aid organizations, and technology vendors, to study the use of blockchain technology, which is a secure and transparent digital ledger system, for recording and verifying real property leases and titles. The study will also assess how this technology could help law enforcement and courts resolve disputes involving squatting, which is defined as the unauthorized occupation of property by someone without legal right. By December 31, 2026, the Department must report the findings of this study to the Governor and the General Assembly.
HB998—Baltimore City – Alcoholic Beverages – 46th Alcoholic Beverages District
This bill makes several changes to Baltimore City’s alcoholic beverage laws, primarily by allowing the Board of License Commissioners to authorize the transfer of a Class B-D-7 license, which is a type of liquor license for on-sale establishments, from the 40th alcoholic beverages district to the 46th alcoholic beverages district, provided the applicant receives a letter of support from the Ridgely’s Delight Association. It also allows holders of a Class D license in the 46th district to sell alcohol seven days a week if they meet certain criteria, including maintaining food sales as at least 51% of their total receipts, entering into a memorandum of understanding (MOU) with a local neighborhood association, having no more than 100 seats, and paying a $15,000 fee, with the understanding that this 7-day privilege cannot be transferred to a new location and violations of the MOU can lead to tiered penalties, including revocation of the 7-day privilege. Additionally, the bill permits a licensed establishment on West Pratt Street to serve donated alcohol from manufacturers or wholesalers at events hosted by nonprofit entities under specific conditions, and it extends the expiration dates for certain alcoholic beverage licenses to allow for ownership transfers or renewals, including a Class B-D-7 license on Eastern Avenue which can be renewed and transferred to Aliceanna Street.
SB12—Residential Rental Apartments - Air-Conditioning Requirement
This bill requires landlords of apartment buildings with 10 or more individual dwelling units to provide air-conditioning, with specific timelines and conditions. For newly constructed units, the requirement begins on June 1, 2026. For existing units, landlords must provide air-conditioning if they previously equipped the unit with it or if the lease required it, starting June 1, 2026. Additionally, for units undergoing renovation that involves replacing or substantially upgrading electrical or heating systems, the air-conditioning requirement begins on October 1, 2026. During the cooling season, from June 1 to September 30, landlords must ensure that the temperature in habitable spaces within the unit does not exceed 80 degrees Fahrenheit, either by maintaining it directly or by ensuring the tenant-controlled system is capable of doing so. The bill also clarifies that it applies prospectively, meaning it will not affect construction or renovations for which building permits were issued before the act's effective date of June 1, 2026.
SB29—Election Law - Petitions and Ballot Questions - Contents, Plain Language Requirement, and Procedures
This bill aims to improve the clarity and accessibility of information related to ballot questions and petitions by requiring that summaries and statements about ballot questions be written in plain language, meaning they should be easily understandable by voters and avoid legal jargon, double negatives, or the passive voice. It also mandates that the full text of ballot measures be posted by boards of elections for at least 90 days before a general election, providing more time for public review and comment on proposed changes to laws or the constitution. Additionally, the bill modifies the content required on the signature pages of petitions, ensuring a clear title and a plain language summary of the proposal, along with a statement explaining the practical outcome of each voting choice, are included.
SB792—Hospitals - Immigration Enforcement Action - Policy Requirement
This bill requires hospitals in Maryland to develop and implement a policy that outlines their procedures when immigration enforcement actions occur on hospital grounds, ensuring patient privacy and the safety of everyone present. Hospitals must make this policy accessible to all their staff members and provide annual training to ensure staff understand and can follow it. The bill also mandates that these policies be consistent with guidance from the Attorney General.
Agricultural Law:
HB359—Property Tax Credit - Urban Agricultural Property - Alterations
This bill alters the eligibility and termination procedures for a property tax credit designed to support urban agricultural property, which is defined as land used for farming within a city or town that is not already assessed as agricultural land. The bill expands the definition of “urban agricultural purposes” to include activities like hydroponics and other soilless farming methods, beekeeping, raising livestock, composting, creating pollinator habitats, and agricultural education and agritourism. Crucially, if a county or municipality decides to terminate this tax credit, they must now provide at least one year’s advance notice to the public and offer an opportunity for public comment and appeal before doing so, ensuring a more transparent process for those benefiting from the credit.
HB734—Property Tax - Agricultural Use Assessment - Community Solar Energy Generating Systems
This bill extends the deadline for community solar energy generating systems to be approved by the Public Service Commission from December 31, 2025, to December 31, 2030, in order for the land they occupy to continue qualifying for agricultural use assessment, a property tax break for land actively used for farming. It also introduces a new process where the State Department of Assessments and Taxation must issue a "preconstruction determination" upon application, which, if favorable, confirms the land's eligibility for agricultural use assessment even while hosting a community solar project, provided certain conditions are met, including submitting a detailed plan for both solar installation and ongoing agricultural activity, known as "agrivoltaics." The Department can revoke this determination if the project deviates significantly from the approved plan, agricultural activity ceases, or inaccurate information was provided.
HB784—Aquaculture - Placement of Shellfish, Bags, Nets, and Structures on Submerged Aquatic Vegetation - Extension
This bill extends the authorization for leaseholders in aquaculture, which is the farming of aquatic organisms like shellfish, to place their shellfish, bags, nets, and structures on submerged aquatic vegetation, which are plants that grow underwater. This extension, which requires prior written approval from the Department of Natural Resources and is subject to certain conditions, will now last until June 30, 2030. The bill also clarifies that when the Department approves such placements, they cannot authorize harvesting by dredge in areas with submerged aquatic vegetation, but must allow for harvesting by diving in those areas and ensure that at least 10% of the area with submerged aquatic vegetation is available for such placements on water column leases.
HB972—Maryland Fair and Agricultural Education Promise Fund - Establishment ( Charles J. Otto Agricultural Education Promise Act)
This bill establishes the Maryland Fair and Agricultural Education Promise Fund, a dedicated fund to support agricultural fairs and education in the state. The fund will be administered by the Comptroller and will consist of appropriated money, interest earnings, and other accepted funds, with its interest earnings being reinvested back into the fund. Annually, the Governor is required to include a $200,000 appropriation in the state budget for this fund. From this fund, $100,000 will be allocated to the Maryland Agricultural Education Foundation, Inc., and another $100,000 to the Maryland FFA Association, both for the purpose of advancing agricultural education programs. The bill also specifies that interest earned on the fund will be credited to the fund itself, and it exempts the fund from certain provisions that would otherwise direct its interest earnings to the General Fund of the State.
Animal Law:
HB225—Maryland Horse Industry Board - Sunset Extension
This bill extends the termination date for the Maryland Horse Industry Board, which is a state agency responsible for supporting and promoting the horse industry in Maryland. The Maryland Program Evaluation Act, often referred to as a "sunset law," requires state programs to be periodically reviewed and reauthorized to ensure they are still effective and necessary; without this reauthorization, programs would automatically expire. This bill amends existing law by changing the expiration date for the Board's authority from July 1, 2026, to July 1, 2036, effectively continuing its operations for an additional ten years under the provisions of the sunset law.
Construction Law:
HB1137—Residential-in-Commercial-Zone Laws - Study (Bring Back Main Street Act)
This bill, titled the "Bring Back Main Street Act," mandates that the Department of Housing and Community Development (DHCD) conduct a study on "Residential-in-Commercial-Zone" (RICZ) laws, which are state laws requiring local governments to permit multifamily residential or mixed-use developments in certain commercially zoned areas. The study will compare RICZ laws in other states, assess their impact on urban communities, local infrastructure, economic development, and housing production, and provide recommendations on appropriate regulations for such developments, including aspects like parking, density, and the types of commercial areas suitable for these projects, with a report due by December 1, 2026. The bill also specifies that it will take effect on June 1, 2026, and will be automatically repealed after one year, on May 31, 2027.
Consumer Bankrputcy:
SB939—Bankruptcy Proceedings - Exemptions From Execution - Residential Real Property
This bill modifies Maryland law regarding property that individuals can protect from creditors during bankruptcy proceedings, specifically concerning their homes. It clarifies that the exemption for owner-occupied residential real property now includes property held in a "revocable trust," which is defined as a trust that the person who created it (the "settlor") can cancel or change without the agreement of the trustee or anyone with a conflicting interest. Additionally, the bill alters the maximum amount that can be exempted for owner-occupied residential real property, setting it at $125,000 for an individual, with provisions for this amount to be adjusted annually for inflation starting in fiscal year 2028. This change aims to update the exemption amount and broaden its applicability to certain trust arrangements, providing debtors with more protection for their primary residence in bankruptcy.
Energy and Environmental Law:
HB274—State Board of Environmental Health Specialists - Sunset Extension
This bill extends the termination date for the State Board of Environmental Health Specialists, meaning the board and its associated regulations will continue to operate until July 1, 2032, instead of their previous expiration date of July 1, 2027. This extension is in line with the Maryland Program Evaluation Act, often referred to as a "sunset law," which requires state agencies and programs to be periodically reviewed and reauthorized to ensure their continued effectiveness and necessity. The bill also specifies that this change will take effect on June 1, 2026.
HB321—Environment - Synthetic Turf Industry and Disposal Study - Deadline Extension
This bill extends the deadline for the Department of the Environment to submit a report on the synthetic turf industry and disposal. The original deadline was July 1, 2026, and this bill moves it to January 15, 2027. The report, which is required by law, will detail various aspects of synthetic turf, including industry practices, disposal methods, recycling rates, and proposals for improvement, and will be submitted to specific legislative committees.
HB451—Maryland Zero Emission Electric Vehicle Infrastructure Council - Membership, Duties, and Sunset Repeal
This bill modifies the Maryland Zero Emission Electric Vehicle Infrastructure Council by altering its membership and duties, and importantly, it removes the council's sunset provision, meaning it will continue to exist indefinitely. The council, which focuses on promoting zero emission electric vehicles (ZEVs) and their infrastructure, will now be required to submit annual reports of its work and recommendations to the Governor and the General Assembly by December 1st of each year, starting in 2026. The bill also clarifies the definition of a "zero emission electric vehicle" to include plug-in electric drive vehicles and removes the specific mention of fuel cell electric vehicles from that definition, while expanding the council's membership to include more diverse representation from various sectors, including local government, industry, and the public, to better advise on the integration of electric vehicle charging infrastructure.
HB663—Department of the Environment - Federal Environmental Policy - Reporting
This bill requires the Department of the Environment to report to the General Assembly twice a year, starting by July 1, 2026, on any changes to federal environmental policy that have been finalized by a federal court. The reports must also detail the state's response to these changes, including any federal policy shifts that affect the Department's administration of federally delegated authority. The initial report will cover changes since January 1, 2024, with subsequent reports covering the preceding six months. This legislation is intended to ensure the state is aware of and prepared to address significant federal environmental policy shifts.
SB739—Climate Change, Homeowner's Insurance, and Emergency Management - Study
This bill mandates that the University System of Maryland conduct a comprehensive study to examine the connections between climate change, the availability and cost of homeowner's insurance, and how well communities are prepared for emergencies and disasters. This study will be conducted with input from various state agencies, including the Maryland Department of Emergency Management and the Maryland Insurance Administration, as well as representatives from county and municipal emergency management and insurance agents. The research will specifically look into how climate change affects insurance costs and availability, the impact of federal disaster preparedness policies, how federal funding supports emergency management, and what local funds are available for disaster recovery. By July 1, 2027, the University System must report its findings and recommendations to the General Assembly, which will include an overview of the National Flood Insurance Program and private flood insurance markets, and propose actions such as tax credits or grants to encourage homeowners to make their homes more resilient to extreme weather, potential changes to insurance laws to reward policyholders who invest in resilience, and best practices for funding emergency management. The study will be funded by up to $100,000 from the Strategic Energy Investment Fund.
Employment Law:
SB831—Labor Law - Child Labor Penalties, Private Sector Employee Labor Relations, and State Employee Labor Standards
This bill significantly revises Maryland's labor laws by increasing penalties for child labor violations, establishing new rules for private sector employee labor relations, and setting standards for state employees. Specifically, it introduces substantial civil penalties for employers who violate child labor laws, with fines potentially reaching over $70,000 per violation, and these penalties will be adjusted annually for inflation. The bill also prohibits employers from forming certain types of workplace organizations that are employer-initiated, involve supervisors and employees in addressing working conditions, can be unilaterally dissolved by the employer, and are exempt from federal labor laws like the National Labor Relations Act (NLRA). Furthermore, it empowers private employees to petition the Public Employee Relations Board (PERB) to resolve labor disputes if the NLRA is repealed or the National Labor Relations Board (NLRB) cedes jurisdiction, allowing PERB to handle representation petitions, unfair labor practice cases, and certify employee organizations. Finally, the bill prevents Executive Branch units from seeking waivers from the federal Fair Labor Standards Act (FLSA), ensuring state employees are protected by its provisions.
Health Law:
HB1367—Commission on Re-Imagining Health Care in Maryland
This bill establishes a Commission on Re-Imagining Health Care in Maryland, tasked with developing recommendations for a comprehensive, patient-centered health care system that integrates somatic, behavioral, dental, vision, and hearing care across all life stages, while also supporting practitioners, eliminating barriers to access, remaining financially sustainable, and improving upon the current system. The Commission will be composed of various stakeholders, including legislators, state officials, representatives from healthcare providers, insurers, local governments, and consumer advocates, with its membership reflecting the state's diversity. The Maryland Health Care Commission will provide staff support, and the Commission is required to submit preliminary reports by December 1, 2027, and December 1, 2028, followed by a final report of its findings and recommendations by December 1, 2029. The establishment and effectiveness of this Commission are contingent upon the Maryland Health Care Commission securing sufficient private funding to conduct its work, with specific deadlines for notification and implementation.
HB1420—Health Occupations - Criminal History Records Checks
This bill mandates criminal history record checks for individuals seeking or renewing licenses and certificates issued by various health occupation boards in Maryland, including those for acupuncturists, dentists, funeral directors, nurses, optometrists, pharmacists, physical therapists, and psychologists. The process involves submitting fingerprints and fees to the "Central Repository," which is the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services, for both state and national checks. This information will be confidential and used solely for licensing purposes, with provisions for individuals to contest any reported information. The bill also specifies when these checks will be required, with some starting dates as early as July 1, 2027, and others in 2028, and also outlines that boards will consider various factors from the criminal history record when making licensing decisions, such as the circumstances and age of the offense, and the time passed since the crime.
SB792—Hospitals - Immigration Enforcement Action - Policy Requirement
This bill requires hospitals in Maryland to develop and implement a policy that outlines their procedures when immigration enforcement actions occur on hospital grounds, ensuring patient privacy and the safety of everyone present. Hospitals must make this policy accessible to all their staff members and provide annual training to ensure staff understand and can follow it. The bill also mandates that these policies be consistent with guidance from the Attorney General.
Immigration Law:
SB792—Hospitals - Immigration Enforcement Action - Policy Requirement
This bill requires hospitals in Maryland to develop and implement a policy that outlines their procedures when immigration enforcement actions occur on hospital grounds, ensuring patient privacy and the safety of everyone present. Hospitals must make this policy accessible to all their staff members and provide annual training to ensure staff understand and can follow it. The bill also mandates that these policies be consistent with guidance from the Attorney General.
Intellectual Property Law:
SB720—Education - Artificial Intelligence - Guidelines, Professional Development, and Collaborative (Artificial Intelligence Ready Schools Act)
This bill, the Artificial Intelligence Ready Schools Act, aims to integrate artificial intelligence (AI) responsibly into Maryland's K-12 education system by requiring the State Department of Education to provide guidance on AI to schools, educators, parents, and students through an online platform, emphasizing safe, equitable, and ethical use, and promoting AI literacy through computer science education. The Department will also develop guidelines and best practices, and each local school system must appoint a non-instructional coordinator from its central office to manage AI use. Furthermore, the bill establishes the Maryland AI Education Collaborative on Artificial Intelligence in K-12 Education, a diverse group of stakeholders including educators, administrators, parents, students, and representatives from various educational organizations, tasked with studying AI's use in schools and making recommendations for guidance, professional development, and policy adoption, with the goal of ensuring AI is used effectively and ethically in education.
Labor and Employment Law:
HB587—Procurement - Department of Transportation and Maryland Transportation Authority Contracts - Board of Public Works Contract Authority - Study and Report
This bill establishes a Workgroup on Transportation Contract Approval Authority, comprised of various legislative, executive, and industry representatives, to study the current system for approving capital expenditures by the Department of Transportation and the Maryland Transportation Authority for state roads, bridges, and highways. The workgroup will examine the effectiveness and public benefit of the existing approval structure, analyze the impact of potential changes, including whether the Board of Public Works (BPW), a state board that oversees state finances and procurement, should approve new contracts and change orders for these projects, and explore alternative review and approval methods. The workgroup will also consider how changes might affect contract timelines, maintenance and construction for transit systems, and the ability to secure federal funding, and is required to report its findings and recommendations to the Governor and the General Assembly by December 1, 2026.
Real Property Law:
HB810—Study to Evaluate Blockchain-Based Real Property Lease and Title Recordation and Verification
This bill requires the State Department of Assessments and Taxation, working with various state agencies, law enforcement, legal aid organizations, and technology vendors, to study the use of blockchain technology, which is a secure and transparent digital ledger system, for recording and verifying real property leases and titles. The study will also assess how this technology could help law enforcement and courts resolve disputes involving squatting, which is defined as the unauthorized occupation of property by someone without legal right. By December 31, 2026, the Department must report the findings of this study to the Governor and the General Assembly.
HB1096—Property Tax Credits - Notice Through Property Tax Bill
This bill requires that the collector for each county in Maryland include with every property tax bill either a website address or a QR code that leads to a county government webpage. This webpage must list all available property tax credits, which are reductions in the amount of property tax owed, that taxpayers in that county can apply for, and it must also provide a brief explanation of how to apply for these tax credits. This change is intended to make it easier for taxpayers to learn about and access property tax credits they may be eligible for.
HB1110—Judicial In Rem Tax Foreclosure - Notice Requirements
This bill modifies the notice requirements for judicial in rem tax foreclosures, a legal process where a county or municipality initiates a lawsuit to take ownership of property due to unpaid taxes. Specifically, it changes how a county or municipal corporation must notify "interested parties" – individuals or entities with a legal stake in the property – when filing a complaint to foreclose on certain vacant and abandoned properties. Instead of requiring notice to be sent by both first-class and certified mail within five days of filing, the bill mandates that the complaint be served on each interested party according to the Maryland Rules, which are the official rules governing legal procedures in the state. This change aims to streamline the notification process while ensuring legal compliance.
HB1330—Homeowners’ Property Tax Credit – Year–Round Application
This bill, effective for taxable years beginning after June 30, 2027, modifies the application process for the homeowners' property tax credit, a program designed to reduce property tax burdens for eligible homeowners. Currently, applications have specific deadlines, with the general deadline for submitting an application being February 14 of the taxable year for which the credit is sought, though some exceptions exist for late applications or for individuals meeting certain age or program enrollment criteria. This bill aims to transition the application cycle to be year-round, meaning homeowners can apply for the credit at any time during the year for which they are seeking relief, rather than being restricted to a specific application window.
HB1611—Property Tax - Credit for Dwelling House of Disabled Veterans and Surviving Spouses - Income Eligibility
This bill modifies the property tax credit available to disabled veterans and their surviving spouses by removing a fixed income limit and allowing local governments to set their own eligibility criteria based on a disabled veteran's federal adjusted gross income, which is their income after certain deductions as reported to the federal government. Previously, a disabled veteran's income was capped at $100,000 for eligibility, but this bill raises that to $150,000 for individuals filing their own tax return and $300,000 for those filing jointly, while also giving counties and municipalities the authority to establish these income thresholds. The changes are intended to provide more flexibility in determining who qualifies for this property tax relief, which can be up to 50% of the property tax for those with a 75% or higher disability rating, or 25% for those with a 50% to 74% rating, and will apply to tax years beginning after June 30, 2026.
SB58—Property Tax Credit - Retail Service Station Conversions
This bill allows the Mayor and City Council of Baltimore City or the governing body of a county or municipal corporation to grant a property tax credit on real property if its use has been converted from a retail service station to another retail, residential, or mixed-use purpose, with the intent that this credit primarily helps cover the costs of removing underground storage tanks and cleaning up any contamination they caused. The bill clarifies that certain businesses, such as discount stores, self-service storage facilities, and retailers of tobacco products or alcoholic beverages, are no longer considered "retail use" for the purpose of this conversion, and it mandates that underground storage tanks on the property must be permanently closed according to environmental regulations before the tax credit can be granted. Local governments can establish the amount and duration of the credit, along with other eligibility requirements and application procedures, and this provision will take effect on June 1, 2026, applying to taxable years beginning after June 30, 2026.
SB767—Property Tax - Credit for Commercial Buildings Rented to Small Businesses
This bill allows the Mayor and City Council of Baltimore City, or the governing body of a county or municipal corporation, to create a property tax credit for commercial buildings. This credit would apply to the local property tax imposed on a commercial building that is rented or rented-to-own at fair market value to a small business. The key requirement is that the commercial building must be located within specific designated areas, including arts and entertainment districts, Main Street Maryland communities, Baltimore Main Street areas, or any other business improvement district. The bill also grants these local governments the authority to determine the amount and duration of the tax credit, establish additional eligibility requirements, outline application procedures, and include any other necessary provisions to implement this tax credit program, which is set to take effect for taxable years beginning after June 30, 2026.
SB814—Residential Property - Service Agreement - Defunct Service Providers
This bill, effective June 1, 2026, prohibits certain service agreements for residential property that were entered into before June 1, 2023, if the service provider is considered "defunct" and not in good standing with the State Department of Assessments and Taxation on or after June 1, 2026. A "service agreement" is defined as a contract where a service provider agrees to perform maintenance or assist with the purchase or sale of residential property. The bill specifically states that such agreements, if they violate certain provisions, will be considered void and unenforceable, meaning they will have no legal effect. These prohibited provisions include agreements that are effective for more than two years, attempt to bind future property owners, create a lien or encumbrance on the property, or allow the service provider to transfer their rights without notice or consent. If such a voided agreement is recorded, individuals with an interest in the property can sue the service provider to have the agreement declared invalid and may seek compensation for damages and legal costs.
SB819—Judicial In Rem Tax Foreclosure - Notice Requirements
This bill modifies the process by which counties and municipal corporations can initiate a judicial in rem foreclosure action, which is a legal process to take ownership of property due to unpaid taxes, specifically for vacant and abandoned properties. The key change is in how notice is provided to "interested parties," meaning anyone with a legal stake in the property, such as owners or lienholders. Instead of requiring notice to be sent via both first-class and certified mail within five days of filing the foreclosure complaint, the bill now mandates that the complaint be served on each interested party according to the Maryland Rules, which is a broader set of legal procedures for serving documents. This change aims to ensure that all parties with an interest in the property are properly notified of the foreclosure proceedings.
SB829—Residential-in-Commercial-Zone Laws - Study (Bring Back Main Street Act)
This bill, also known as the "Bring Back Main Street Act," requires the Department of Housing and Community Development to conduct a study on laws that would mandate certain local governments to permit residential or mixed-use developments (developments combining housing with commercial spaces) in areas zoned exclusively for commercial use. The study will examine similar laws in other states, assess their impact on urban communities, local infrastructure, economic development, and housing production, and provide recommendations on appropriate regulations for such developments, including considerations for parking, density, and the types of commercial areas suitable for these projects, with a final report due to the Governor and the General Assembly by December 1, 2026.
SB939—Bankruptcy Proceedings - Exemptions From Execution - Residential Real Property
This bill modifies Maryland law regarding property that individuals can protect from creditors during bankruptcy proceedings, specifically concerning their homes. It clarifies that the exemption for owner-occupied residential real property now includes property held in a "revocable trust," which is defined as a trust that the person who created it (the "settlor") can cancel or change without the agreement of the trustee or anyone with a conflicting interest. Additionally, the bill alters the maximum amount that can be exempted for owner-occupied residential real property, setting it at $125,000 for an individual, with provisions for this amount to be adjusted annually for inflation starting in fiscal year 2028. This change aims to update the exemption amount and broaden its applicability to certain trust arrangements, providing debtors with more protection for their primary residence in bankruptcy.
Taxation Law:
HB359—Property Tax Credit - Urban Agricultural Property - Alterations
This bill alters the eligibility and termination procedures for a property tax credit designed to support urban agricultural property, which is defined as land used for farming within a city or town that is not already assessed as agricultural land. The bill expands the definition of "urban agricultural purposes" to include activities like hydroponics and other soilless farming methods, beekeeping, raising livestock, composting, creating pollinator habitats, and agricultural education and agritourism. Crucially, if a county or municipality decides to terminate this tax credit, they must now provide at least one year's advance notice to the public and offer an opportunity for public comment and appeal before doing so, ensuring a more transparent process for those benefiting from the credit.
HB363—Local Government - Grant for Recipients of State Child Tax Credit - Authorization
This bill authorizes counties in Maryland to create their own local grant programs for families who receive the state's income tax credit for dependent children, which is defined as a "qualified child" under state tax law. To be eligible for such a county grant, a taxpayer must have a federal adjusted gross income below $15,000 and be a resident of that county, along with their qualified child, on the last day of the taxable year. The amount of the grant would be reduced by 10% for every $1,000, or part thereof, that the taxpayer's federal adjusted gross income exceeds the $15,000 threshold, but the grant cannot be reduced below zero. Counties would have the authority to determine the specific grant amounts and any other necessary provisions to implement these local programs, and this change is set to take effect on June 1, 2026.
HB734—Property Tax - Agricultural Use Assessment - Community Solar Energy Generating Systems
This bill extends the deadline for community solar energy generating systems to be approved by the Public Service Commission from December 31, 2025, to December 31, 2030, in order for the land they occupy to continue qualifying for agricultural use assessment, a property tax break for land actively used for farming. It also introduces a new process where the State Department of Assessments and Taxation must issue a "preconstruction determination" upon application, which, if favorable, confirms the land's eligibility for agricultural use assessment even while hosting a community solar project, provided certain conditions are met, including submitting a detailed plan for both solar installation and ongoing agricultural activity, known as "agrivoltaics." The Department can revoke this determination if the project deviates significantly from the approved plan, agricultural activity ceases, or inaccurate information was provided.
HB1096—Property Tax Credits - Notice Through Property Tax Bill
This bill requires that the collector for each county in Maryland include with every property tax bill either a website address or a QR code that leads to a county government webpage. This webpage must list all available property tax credits, which are reductions in the amount of property tax owed, that taxpayers in that county can apply for, and it must also provide a brief explanation of how to apply for these tax credits. This change is intended to make it easier for taxpayers to learn about and access property tax credits they may be eligible for.
HB1611—Property Tax - Credit for Dwelling House of Disabled Veterans and Surviving Spouses - Income Eligibility
This bill modifies the property tax credit available to disabled veterans and their surviving spouses by removing a fixed income limit and allowing local governments to set their own eligibility criteria based on a disabled veteran's federal adjusted gross income, which is their income after certain deductions as reported to the federal government. Previously, a disabled veteran's income was capped at $100,000 for eligibility, but this bill raises that to $150,000 for individuals filing their own tax return and $300,000 for those filing jointly, while also giving counties and municipalities the authority to establish these income thresholds. The changes are intended to provide more flexibility in determining who qualifies for this property tax relief, which can be up to 50% of the property tax for those with a 75% or higher disability rating, or 25% for those with a 50% to 74% rating, and will apply to tax years beginning after June 30, 2026.
SB58—Property Tax Credit - Retail Service Station Conversions
This bill allows the Mayor and City Council of Baltimore City or the governing body of a county or municipal corporation to grant a property tax credit on real property if its use has been converted from a retail service station to another retail, residential, or mixed-use purpose, with the intent that this credit primarily helps cover the costs of removing underground storage tanks and cleaning up any contamination they caused. The bill clarifies that certain businesses, such as discount stores, self-service storage facilities, and retailers of tobacco products or alcoholic beverages, are no longer considered "retail use" for the purpose of this conversion, and it mandates that underground storage tanks on the property must be permanently closed according to environmental regulations before the tax credit can be granted. Local governments can establish the amount and duration of the credit, along with other eligibility requirements and application procedures, and this provision will take effect on June 1, 2026, applying to taxable years beginning after June 30, 2026.
SB344—Property Tax - Agricultural Use Assessment - Community Solar Energy Generating Systems
This bill extends the deadline for community solar energy generating systems to be approved by the Public Service Commission (PSC) from December 31, 2025, to December 31, 2030, in order for the land they occupy to qualify for agricultural use assessment, a property tax break for land actively used for farming. It also requires the State Department of Assessments and Taxation to issue a preconstruction determination upon application, which, if favorable, will qualify the land for agricultural use assessment, provided certain conditions are met, including the submission of a site plan, an agrivoltaics plan detailing how agricultural activity will be conducted alongside the solar system, and proof of site control. The Department can revoke this determination if the project significantly deviates from the application, agricultural activity ceases, or inaccurate information was provided. The bill also allows the Department to charge a fee to cover administrative costs associated with these new provisions.
SB765—Property Taxes - Tax Sales, Legacy Protection Program, and Tax Credits
This bill establishes a "Legacy Protection Program" administered by the State Tax Sale Ombudsman to help heirs who inherit a dwelling, allowing them to become the official owner, prevent their inherited home from being sold due to unpaid taxes, and remain living in their home. The bill expands the definition of "homeowner" to include the estate, personal representative, or an heir or legatee of a deceased homeowner who is entitled to inherit the dwelling, thereby making these individuals eligible for services offered by the Ombudsman. It also creates a dedicated "Legacy Protection Fund" to finance this program, with contributions from state appropriations and county governments derived from interest on overdue property taxes, and increases the property value limit for heirs to receive grants for legal assistance and probate fees from $350,000 to $450,000. Additionally, the bill clarifies that interest earned on the Legacy Protection Fund accrues to the fund itself, rather than the General Fund, and delays the effective date of certain provisions to July 1, 2027.
SB767—Property Tax - Credit for Commercial Buildings Rented to Small Businesses
This bill allows the Mayor and City Council of Baltimore City, or the governing body of a county or municipal corporation, to create a property tax credit for commercial buildings. This credit would apply to the local property tax imposed on a commercial building that is rented or rented-to-own at fair market value to a small business. The key requirement is that the commercial building must be located within specific designated areas, including arts and entertainment districts, Main Street Maryland communities, Baltimore Main Street areas, or any other business improvement district. The bill also grants these local governments the authority to determine the amount and duration of the tax credit, establish additional eligibility requirements, outline application procedures, and include any other necessary provisions to implement this tax credit program, which is set to take effect for taxable years beginning after June 30, 2026.