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MarylandSB 03272025 Regular SessionSenateWALLET

Affordable Housing Payment In Lieu of Taxes Expansion Act

Sponsored By: Shelly Hettleman (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 PropertyResidential Property -see also- Apartments; CondominiumsTime

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Bill Overview

Analyzed Economic Effects

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

County tax deals support affordable rentals

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 more units. These units must serve households earning no more than 60% of the area's median income, with housing costs capped at 30% of household income. The income benchmark comes from HUD, changes annually, and accounts for household size. The law took effect June 1, 2025, and applies to taxable years beginning after June 30, 2025. County participation is optional, and the law does not guarantee renters an available unit.

Sponsors & Cosponsors

Sponsor

  • Shelly Hettleman

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 137 • No: 50

House vote • 4/7/2025

Third Reading Passed

Yes: 103 • No: 37

Senate vote • 3/12/2025

Third Reading Passed

Yes: 34 • No: 13

Actions Timeline

  1. Approved by the Governor - Chapter 106

    4/22/2025

  2. Returned Passed

    4/7/2025Senate

  3. Third Reading Passed (103-37)

    4/7/2025House

  4. Favorable Adopted Second Reading Passed

    4/3/2025House

  5. Favorable Report by Ways and Means

    4/3/2025House

  6. Hearing 3/26 at 2:15 p.m. (Ways and Means)

    3/26/2025House

  7. Hearing canceled (Ways and Means)

    3/26/2025House

  8. Hearing 3/26 at 1:00 p.m. (Ways and Means)

    3/25/2025House

  9. Hearing canceled (Ways and Means)

    3/25/2025House

  10. Hearing 3/25 at 1:00 p.m. (Ways and Means)

    3/17/2025House

  11. Referred Ways and Means Environment and Transportation

    3/13/2025House

  12. Third Reading Passed (34-13)

    3/12/2025Senate

  13. Second Reading Passed with Amendments

    3/11/2025Senate

  14. Favorable with Amendments {653622/1 Adopted

    3/11/2025Senate

  15. Favorable with Amendments Report by Budget and Taxation

    3/10/2025Senate

  16. Hearing 1/29 at 10:30 a.m.

    1/15/2025Senate

  17. First Reading Budget and Taxation

    1/15/2025Senate

Bill Text

  • Enacted

    4/22/2025

    PDF

  • Third Reading

    3/11/2025

    PDF

  • First Reading

    1/15/2025

    PDF

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