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HB 135

Economic Development - Tax Increment Financing - Noncontiguous Areas

2026 Regular Session Introduced by Dylan Behler and 2 co-sponsors

Maryland bill allows Tax Increment Financing districts to span multiple noncontiguous areas instead of requiring geographic continuity, expanding development flexibility but complicating fiscal oversight.

Approved by the Governor - Chapter 536
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WeVote Research Nonpartisan
Bill Summary · HB 135

Legislative bill overview

HB 135 modifies Maryland's Tax Increment Financing (TIF) program to allow TIF districts to be established in noncontiguous areas rather than requiring them to be geographically continuous. Tax Increment Financing is an economic development tool where future tax revenue increases from a designated area are captured and used to fund infrastructure improvements and development projects in that same area.

Why is this important

This change could expand economic development opportunities in Maryland by allowing municipalities to strategically combine multiple separate neighborhoods or sites into a single TIF district, potentially making it easier to finance improvements across fragmented urban areas. However, it may also make TIF districts harder for the public to understand and could complicate how incremental tax revenues are tracked and allocated across disconnected locations.

Potential points of contention

  • Fiscal transparency and tracking: Noncontiguous districts make it more difficult for taxpayers and auditors to track which specific areas are generating captured tax revenues and where those funds are being spent
  • Equitable development concerns: Developers could cherry-pick only the most economically viable non-adjacent parcels while excluding struggling neighborhoods, potentially deepening geographic inequality rather than addressing it comprehensively
  • Municipal administration: Local governments may face increased complexity in infrastructure planning, maintenance, and service provision when managing noncontiguous districts with separate physical needs

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

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