This week’s article is a summary of all the “Tax Rates and Credits,” “Common Ownership Communities” and “Land Use, Property Rights and the Environment” related legislation that passed during the 2025 447th Maryland General Assembly session. The session convened on January 8th and adjourned on April 7th. Maryland REALTORS® issues a recap of all of the pertinent legislation affecting the real estate industry.
TAX RATES AND CREDITS
HB 390/SB 327 Affordable Housing Payment In Lieu of Taxes Expansion Act Effective June 1, 2025 Operators of rental housing developments may enter into payment in lieu of taxes with local governments for maintaining at least 25% of the units as affordable.
HB 698/SB 814 Development Impact Fees, Surcharges, and Excise Taxes Effective October 1, 2025 By July 1, each county must annually report to the Governor and the General Assembly information relating to the collection and expenditure of development impact fees, surcharges, or excise taxes over the prior year
SB 979 Short-Term Rentals - Tax Collection by Comptroller Effective July 1, 2027
Short-term rental platforms with at least 200 bookings or $100,000 in revenue will collect and remit the applicable hotel occupancy tax to the Comptroller, which will then be distributed to the respective county where the rental is located
COMMON OWNERSHIP COMMUNITIES
HB 292/SB 63 Funding of Reserve Accounts and Preparation of Funding Plans Effective October 1, 2025 This bill grants additional flexibility to meet required reserve funding requirements and creates a financial hardship process to alter approved reserve funding plans for up to one fiscal year.
LAND USE, PROPERTY RIGHTS, AND THE ENVIRONMENT
HB 4/SB 120 Restrictions on Use - Solar Collector Systems Effective October 1, 2025
Restrictions that increase the cost of the installation of a solar collector system by more than 5% or reduce the energy generation by 10% are prohibited.
HB 49 Building Energy Performance Standards - Alterations and Analysis Effective October 1, 2025 Initially, this bill would have charged a fee for buildings that did not meet energy usage requirements. As amended, this bill certifies county building energy programs and excludes emissions from public health and safety facilities.
SB 117/HB 131 Bay Restoration Fund - Septic System Upgrade Program Effective July 1, 2026
This bill modifies the prioritization and eligibility for projects that receive funding from the Bay Restoration Fund’s (BRF) septics’ account, adding failing systems in the broader Chesapeake Bay watershed and those in the 500-year floodplain.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
