Real Property - Taxation of Vacant Property, Certification of Company Representatives, and Short-Term Rentals
Impact
The legislation empowers local authorities to take more control over the taxation of vacant residential properties, which may lead to increased revenue for municipalities while also encouraging property owners to either occupy or renovate unoccupied properties. Additionally, the bill mandates that entities owning residential real properties must submit annual certifications to the State Department of Assessments and Taxation. This measure is intended to enhance transparency and accountability in property management by ensuring that property owners maintain updated contact information for representatives authorized to engage with the public.
Summary
Senate Bill 779, titled 'Real Property - Taxation of Vacant Property, Certification of Company Representatives, and Short-Term Rentals', aims to introduce a special property tax rate for certain vacant residential properties within Baltimore City and other counties in Maryland. The bill outlines provisions for local governing bodies to establish this tax structure, effectively creating a subclass of real property that includes these vacant units. This is designed to incentivize the rehabilitation of vacant properties and address housing shortages in urban areas that have experienced significant vacancy rates.
Contention
Key points of contention surrounding SB 779 include the implications of increased local authority in regulating short-term rentals and property taxation. The bill grants local governments the ability to implement rules surrounding the high-intensity use of short-term rentals, aimed at maintaining housing affordability. Some stakeholders may view this as a necessary measure to protect local communities from the negative impacts of unregulated short-term rentals, while others could argue that it may disproportionately burden property owners and undermine the rental market. Further debate may focus on the balance between local regulatory power and the need to encourage investment and redevelopment in distressed areas.