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SB 287

Economic Development - Tax Increment Financing - Noncontiguous Areas

2026 Regular Session Introduced by Cory McCray

Maryland allows Tax Increment Financing districts to span noncontiguous areas, enabling flexible multi-site economic development strategies rather than requiring geographically adjacent parcels.

Favorable Report by Economic Matters
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WeVote Research Nonpartisan
Bill Summary · SB 287

Legislative bill overview

SB 287 modifies Maryland's Tax Increment Financing (TIF) program to allow TIF districts to include noncontiguous areas—parcels that are not physically adjacent to each other. Previously, TIF districts required geographic contiguity. This change expands the flexibility for local governments and developers to design TIF districts based on economic development strategy rather than geographic proximity.

Why is this important

TIF is a major economic development tool where increases in property tax revenue from a designated area are captured and reinvested in improvements within that district, theoretically spurring development and revitalization. Allowing noncontiguous areas could enable targeted investment in multiple economically distressed neighborhoods simultaneously or allow inclusion of parcels that serve a unified economic purpose despite physical separation. This affects how cities and counties can structure development incentives and which communities gain access to these tax-based funding mechanisms.

Potential points of contention

  • Equity concerns: Noncontiguous districts could allow selective inclusion/exclusion of parcels, potentially disadvantaging certain neighborhoods or creating patterns that appear arbitrary to the public
  • Administrative complexity: Managing TIF obligations and infrastructure improvements across geographically separated areas may increase costs and coordination challenges for municipalities
  • Tax base impact: Fragmenting TIF districts could affect long-term municipal tax base projections and complicate budgeting for services in non-TIF areas

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

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