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SB 510

Excess Ownership of Single-Family Residences Excise Tax (End Hedge Fund Control of Maryland Homes Act of 2025)

2025 Regular Session Introduced by Shaneka Henson

SB 510 would tax Maryland entities owning excessive single-family homes to reduce institutional investor control of residential properties and preserve homeownership opportunities.

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Bill Summary · SB 510

Legislative bill overview

SB 510 would have imposed an excise tax on entities that own excessive numbers of single-family residential properties in Maryland, targeting institutional investors and hedge funds. The bill aimed to discourage large-scale acquisition of residential housing by financial entities rather than individual homeowners or owner-occupants.

Why is this important

Housing affordability and ownership rates have declined as institutional investors increasingly purchase single-family homes, converting them to rentals and reducing the available owner-occupied housing stock. This bill represents an attempt to use tax policy to reshape the residential real estate market and preserve homeownership opportunities for individual Marylanders.

Potential points of contention

  • Definitional complexity: Determining what constitutes "excess ownership" and which entities qualify for taxation raises questions about fairness and implementation burden on tax authorities
  • Economic effectiveness: Critics question whether an excise tax would meaningfully reduce institutional investment or simply get passed to tenants through higher rents
  • Constitutional concerns: Some argue targeting specific types of property owners may face legal challenges regarding equal protection and property rights
  • Market impacts: Opponents worry the tax could reduce rental housing supply, increase housing costs broadly, or push investors to other states, while proponents argue it protects local housing markets

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

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