Baltimore Aims to Lower Property Tax Burden for Homeowners

Mayor Brandon M. Scott of Baltimore has announced a two-pronged approach to address property tax affordability for city residents. These initiatives, detailed in a press release from the City of Baltimore, aim to reduce the effective property tax rate for residential homeowners and reform the city’s tax sale process. The measures are designed to make homeownership more accessible and to protect existing homeowners from financial hardship.

The first initiative focuses on property tax relief through a three-part strategy intended to lower the overall tax burden on a majority of residential homeowners without impacting essential city services. This strategy includes adjusting the Homestead Tax Credit cap from its current 4% to 6%, a change that will be introduced to the City Council for consideration for the FY 2027 tax season. This adjustment, along with an increase in funding for the Targeted Homeowners Tax Credit, is projected to reduce the effective homeowner tax rate to $1.99 per $100 of assessed value, a decrease from the current $2.048. These changes are expected to result in lower tax bills for tens of thousands of residents. The third component of this strategy involves an outreach campaign to increase enrollment in the State Homeowners’ Property Tax Credit and Renters’ Tax Credit programs, as analysis suggests many eligible residents are not currently utilizing these benefits.

In parallel with these tax relief measures, the City of Baltimore has reached an agreement with Maryland Legal Aid to modify the tax sale process. This agreement, which comes as a resolution to ongoing litigation concerning the city’s tax sale system, includes raising the minimum bid for tax sales to the assessed value of the property. This change is intended to prevent homeowners from losing significant equity when their property is subject to a tax sale. Furthermore, for the first time in the city’s history, a payment plan option will be established for residents who are at risk of facing tax sale due to overdue property taxes. This program aims to provide a more flexible and accessible way for homeowners to address their tax obligations and remain in their homes. The administration is collaborating with City Council members to draft and pass the necessary legislation to implement these payment plans.

Residents interested in these new property tax relief measures and the upcoming real property payment plans are encouraged to visit the City of Baltimore’s website for updates. The city is also partnering with a payment plan provider that has previously assisted thousands of residents with managing water bills, indicating a commitment to leveraging existing successful systems for this new initiative. Information will be disseminated through various city channels, including its website, customer service teams, social media, and community partners.

The proposed tax relief measures are expected to provide immediate benefits to residents, with positive impacts anticipated on the FY 2027 tax bills. The reforms to the tax sale process are designed to create a fairer system that prioritizes homeowner stability and inter-generational wealth.

Article by Mel Anara, based upon information from the City of Baltimore.

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