MD SB327

Authorizes owners of rental housing properties 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 units 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 above the 25% minimum threshold in their PILOT agreements

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