MD HB23

Baltimore City and Maryland counties may establish a subclass of commercial and industrial real property and impose a special property tax rate up to 12.5 cents per $100 of assessed value

Revenue from the special rate may only fund transportation improvements within special taxing districts or county board of education approved budgets

Residential portions of mixed-use buildings must receive either a tax exemption or credit against the special rate, calculated based on square footage, income percentage, or other reasonable method

Counties may grant a property tax credit against the special rate for businesses with 15 or fewer employees

Takes effect June 1, 2025, applicable to taxable years beginning after June 30, 2025