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SB 756

Baltimore City – Economic Development Project in Downtown RISE District – Payment in Lieu of Taxes

2026 Regular Session Introduced by Cory McCray

Baltimore creates a reduced-tax program for Downtown RISE District developers to spur investment, trading short-term tax revenue for potential economic growth and community improvements.

Approved by the Governor - Chapter 146
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Bill Summary · SB 756

Legislative bill overview

SB 756 authorizes Baltimore City to establish a Payment in Lieu of Taxes (PILOT) program for economic development projects in the Downtown RISE (Revitalization of Inner-city Spaces for Equity) District. Under this program, qualifying developers would pay reduced property taxes over a specified period instead of standard rates, with payments directed toward public improvements and community benefits in the district.

Why is this important

PILOT programs are commonly used to incentivize development in economically distressed areas by reducing the tax burden on developers, potentially spurring job creation and property investment. However, this comes with a direct cost to the city's tax base during the program period, raising questions about fiscal sustainability and whether the promised economic benefits materialize.

Potential points of contention

  • Tax revenue loss: The city foregoes property tax revenue during the PILOT period, creating a gap in municipal funding that may affect schools, services, or other programs unless offset by economic growth
  • Inequitable distribution: Businesses receiving PILOT benefits gain a competitive advantage over non-qualifying competitors and property owners paying full taxes, raising fairness concerns
  • Accountability mechanisms: The bill's amendments and specific terms regarding project oversight, performance requirements, and claw-back provisions for underperforming projects remain unclear without full legislative text

Compiled from official sources — confirm details with the bill’s official record.

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