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MarylandHB 03902025 Regular SessionHouseWALLET

Affordable Housing Payment In Lieu of Taxes Expansion Act

Sponsored By: Marc Korman (Democratic)

Signed by Governor

Taxes - PropertyHousing and Community DevelopmentBaltimore CityCounties -see also- Chartered Counties; Code Counties; etc.Housing -see also- Apartments; Condos; Mobile & Manuf HomesLandlords and TenantsLeases and RentLow-IncomeProperty TaxReal PropertyTime

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Tax relief for affordable rental housing

Maryland counties and rental property owners can agree to replace county property taxes with a negotiated payment. Owners must keep at least 25% of rental units affordable for at least 15 years. Counties can require a higher share. These units must be affordable to households earning 60% or less of the area's median income. Housing costs cannot exceed 30% of household income. The income benchmark comes from HUD, adjusts for household size, and updates each year. The law took effect June 1, 2025, and applies to taxable years beginning after June 30, 2025.

Sponsors & Cosponsors

Sponsor

  • Marc Korman

    Democratic • House

Cosponsors

  • Kris Fair

    Democratic • House

  • Julie Palakovich Carr

    Democratic • House

  • Vaughn Stewart

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 137 • No: 48

Senate vote • 4/3/2025

Third Reading Passed

Yes: 37 • No: 10

House vote • 3/11/2025

Third Reading Passed

Yes: 100 • No: 38 • Other: 1

Actions Timeline

  1. Approved by the Governor - Chapter 107

    4/22/2025

  2. Returned Passed

    4/4/2025House

  3. Third Reading Passed (37-10)

    4/3/2025Senate

  4. Second Reading Passed

    4/2/2025Senate

  5. Favorable Adopted

    4/2/2025Senate

  6. Favorable Report by Budget and Taxation

    4/2/2025Senate

  7. Referred Budget and Taxation

    3/12/2025Senate

  8. Third Reading Passed (100-38)

    3/11/2025House

  9. Second Reading Passed with Amendments

    3/11/2025House

  10. Favorable with Amendments {103924/1 Adopted

    3/11/2025House

  11. Favorable with Amendments Report by Ways and Means

    3/10/2025House

  12. Hearing 2/04 at 1:00 p.m. (Ways and Means)

    1/18/2025House

  13. First Reading Ways and Means and Environment and Transportation

    1/16/2025House

Bill Text

  • Enacted

    4/22/2025

    PDF

  • Third Reading

    3/11/2025

    PDF

  • First Reading

    1/16/2025

    PDF

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