MD HB135

Authorizes local governments to designate noncontiguous areas as development districts for tax increment financing (TIF) purposes, expanding beyond the current requirement that development districts be contiguous

Defines "blighted area" as an area where a majority of buildings have declined in productivity due to obsolescence, depreciation, or other causes to the point they no longer justify fundamental repairs and adequate maintenance

Creates a special exception for Baltimore City, which is generally exempt from the TIF subtitle but may now use the noncontiguous blighted area provisions

Requires political subdivisions to pass a resolution designating noncontiguous blighted areas as development districts before issuing TIF bonds

Takes effect October 1, 2026