Overview
- Mayor Brandon Scott outlined a three-part strategy that adjusts the Homestead Tax Credit, expands the Targeted Homeowners Tax Credit, and boosts enrollment in state homeowner and renter credits.
- Legislation to change the Homestead Tax Credit cap from 4% to 6% was set for introduction at the Feb. 9 City Council meeting with the goal of applying it in the FY2027 tax season.
- Increasing funding for the Targeted Homeowners Tax Credit is projected to reduce the effective homeowner rate from $2.048 to $1.99 per $100 of assessed value, pending Board of Estimates consideration with the FY2027 budget.
- The city reached an agreement with Maryland Legal Aid that stays a lawsuit over the tax sale system, and plans include raising minimum bids to a property’s assessed value to help protect homeowner equity.
- Payment plans for some residents with tax debts are part of the proposal but require additional City Council action, and the city will run a campaign to enroll eligible residents in state tax-credit programs.