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MarylandHB 00592025 Regular SessionHouseWALLET

Property Tax – Tax Sales – Revisions

Sponsored By: Sponsor information unavailable

Signed by Governor

Taxes - PropertyAbandoned PropertyAssessments and Taxation, Department ofBaltimore CityBeneficiariesCounties -see also- Chartered Counties; Code Counties; etc.Estates and Trusts -see also- BeneficiariesFees -see also- Attys' Fees; Devt Fees & TaxesForeclosureInterestLandlords and TenantsLiensLocal Government MandatesMunicipal Corporations -see also- Annap; Balt; Hager; OCNoticesOmbudsmenPostal ServiceProperty TaxRecords -see also- Land Records; Vital RecordsRegistration -see also- Motor Vehicle RegistrationResidential Property -see also- Apartments; CondominiumsSewageTax SalesTimeWater -see also- Coastal Bays; Riv,Str,Lks; Wastewater; etc.

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 6 benefits, 1 costs, 1 mixed.

More homes protected from tax sales

Collectors must keep owner-occupied or heir-occupied homes out of tax sale when taxes, interest, and penalties total under $1,000. Local governments can also protect owner-occupied homes and homes occupied by heirs of deceased owners using objective local criteria. Separate local protections cover qualifying homeowners or heirs who are low-income, at least 65, or disabled and meet local eligibility rules. The law's tax-sale revisions apply only to certificates issued on or after January 1, 2026.

Homeowner help reaches heirs and estates

The Homeowner Protection Program includes a deceased homeowner's estate, personal representative, and heirs or beneficiaries entitled to inherit the dwelling. The program seeks alternatives to private tax-lien sales that reduce costs and help vulnerable homeowners stay in their homes. Each county and Baltimore City must create a registry where interested parties or the State Tax Sale Ombudsman can identify property for withholding. The state tax department must help create and maintain registries when requested. Registry listing alone does not guarantee protection from sale.

Homes shielded from water-debt tax sales

Collectors must withhold residential and qualifying tax-exempt property from tax sale when its only tax lien is unpaid water and sewer charges. Local governments cannot use the described water-and-sewer lien sale authority against residential or qualifying tax-exempt property. For other property, the lien must generally reach $350, and charges must be at least three quarters overdue. A smaller lien can be enforced against qualifying nonresidential property when another lien also leads to a sale.

Unpaid abandoned-property taxes remain collectible

An abandoned property's tax sale does not erase a shortfall when the sale brings less than the total amount owed. Local governments can seek a judgment for remaining taxes, interest, penalties, and sale expenses. When a private buyer purchases the property, the local government can bring a separate collection case within seven years after sale.

Lower homeowner redemption charges, some fees remain

Owners redeeming an owner-occupied home pay an annual redemption interest rate capped at 10%. Taxes, interest, and penalties accruing after sale are excluded from the redemption payment. Before foreclosure is filed, owners redeeming more than 10 months after sale can also owe specified buyer expenses. Expenses incurred within the first 10 months cannot be reimbursed, extending the previous seven-month protection. Allowed costs include recording and specified mailings, title searches up to $250, and reasonable attorney fees up to $500.

Homeowners get more time before foreclosure

For owner-occupied homes, tax-sale buyers must wait 12 months before filing to end the owner's right to redeem. That wait increases from nine months. The first of two required notices cannot be sent until 10 months after sale, up from seven months. The party bringing the foreclosure must also send written notice to the State Tax Sale Ombudsman.

Renters get notice before losing possession

After a tax-sale foreclosure judgment, the party seeking possession must give each tenant at least 90 days' written notice. The notice must say the tenant has 90 days to leave and must also be posted on the property. A court order for possession can be obtained during the first 90 days after judgment, but cannot be enforced then.

Local tax-sale protection for redevelopment property

Baltimore City, counties, and towns can keep property designated for redevelopment out of tax sale. The property must meet objective criteria set by the local government. This protection is a local choice, not an automatic statewide exemption.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 315 • No: 0

House vote • 4/5/2025

Third Reading Passed

Yes: 129 • No: 0 • Other: 8

Senate vote • 4/3/2025

Third Reading Passed

Yes: 47 • No: 0

House vote • 3/11/2025

Third Reading Passed

Yes: 139 • No: 0

Actions Timeline

  1. Approved by the Governor - Chapter 231

    4/22/2025

  2. Passed Enrolled

    4/5/2025House

  3. Third Reading Passed (129-0)

    4/5/2025House

  4. House Concurs Senate Amendments

    4/5/2025House

  5. Third Reading Passed (47-0)

    4/3/2025Senate

  6. Second Reading Passed with Amendments

    4/2/2025Senate

  7. Favorable with Amendments {923227/1 Adopted

    4/2/2025Senate

  8. Favorable with Amendments Report by Budget and Taxation

    4/2/2025Senate

  9. Hearing 3/27 at 1:00 p.m.

    3/24/2025Senate

  10. Referred Budget and Taxation

    3/12/2025Senate

  11. Third Reading Passed (139-0)

    3/11/2025House

  12. Second Reading Passed with Amendments

    3/11/2025House

  13. Favorable with Amendments {703623/1 Adopted

    3/11/2025House

  14. Favorable with Amendments Report by Ways and Means

    3/10/2025House

  15. Hearing 1/28 at 1:00 p.m.

    1/8/2025House

  16. First Reading Ways and Means

    1/8/2025House

  17. Pre-filed

    10/6/2024House

Bill Text

  • Enacted

    4/22/2025

    PDF

  • Enrolled

    4/5/2025

    PDF

  • Third Reading

    3/11/2025

    PDF

  • First Reading

    1/8/2025

    PDF

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