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Bill

HB 23

Property Taxes - Authority of Counties to Establish a Subclass and Set a Special Rate for Commercial and Industrial Property

2025 Regular Session Introduced by Lorig Charkoudian and 5 co-sponsors

Maryland HB 23 lets counties tax commercial/industrial properties at different rates than residential, potentially shifting tax burdens and affecting business location decisions and housing affordability.

Hearing 3/27 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 23

Legislative bill overview

HB 23 authorizes Maryland counties to create a separate property tax subclass for commercial and industrial properties, allowing them to set a different tax rate for these properties than residential properties. This represents a shift from uniform property tax rates and grants local jurisdictions more flexibility in tailoring their tax structures to local economic conditions.

Why is this important

Property tax policy fundamentally affects business competitiveness, housing affordability, and municipal revenue. Allowing counties to tax commercial/industrial property differently could either incentivize business development in certain areas or shift tax burdens between business owners and residential property owners. This has real implications for where businesses choose to locate and how tax costs are distributed across different property classes.

Potential points of contention

  • Equity concerns: Residential homeowners may face higher tax rates if counties preferentially tax commercial property lower to attract business, potentially affecting affordability
  • Economic development race: Counties might engage in competitive underbidding on commercial tax rates, eroding regional revenue bases and creating tax disparities across jurisdictions
  • Implementation complexity: Counties must develop new assessment and collection systems, and inconsistent application could create fairness issues across different communities

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

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