MD HB390

Authorizes rental property owners and county governing bodies to enter into payment in lieu of taxes (PILOT) agreements that exempt the property from county property tax in exchange for a negotiated payment amount

Requires property owners to maintain at least 25% of rental housing units as affordable dwelling units for a minimum of 15 years to qualify for the exemption

Defines "affordable dwelling unit" as housing affordable to households earning 60% or less of area median income, with housing costs not exceeding 30% of household income

Permits counties to negotiate higher affordability percentages than the 25% minimum requirement in individual PILOT agreements

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