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HB 585

Property Tax - Low-Income Housing Tax Credit - Valuation of Property

2025 Regular Session Introduced by Julie Palakovich Carr

Maryland law revalues income-restricted properties with low-income housing tax credits to lower assessments, reducing property tax burdens on affordable housing but potentially decreasing local government revenues.

Approved by the Governor - Chapter 67
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Bill Summary · HB 585

Legislative bill overview

HB 585 modifies how Maryland assesses property values for tax purposes when low-income housing tax credits are applied to residential properties. The bill establishes new valuation methodology to reflect the reduced income potential of properties restricted to low-income housing, ensuring property tax assessments align with actual economic value under federal tax credit restrictions.

Why is this important

Property tax assessments directly affect operating costs for affordable housing developers and property owners. Improper valuations can increase tax burdens on low-income housing projects, potentially reducing affordability or limiting new development. This bill aims to prevent inflated assessments that don't match the economic reality of income-restricted properties.

Potential points of contention

  • Local revenue impact: Lower assessed values reduce property tax revenue for counties and municipalities that depend on these collections for schools, services, and infrastructure
  • Assessment consistency: Establishing new valuation standards may create complexity for assessors across different jurisdictions and potential disputes over methodology
  • Scope and eligibility: Unclear whether all affordable housing programs qualify or only those with federal tax credits, potentially creating unequal treatment among similar properties

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

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