WES MOORE, Governor Ch. 71
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Chapter 71
(House Bill 133)
AN ACT concerning
State Department of Assessments and Taxation – Notification of Constant Yield
Tax Rate – Repeal Alteration
FOR the purpose of repealing altering the requirement that the State Department of
Assessments and Taxation notify each taxing authority of the constant yield tax rate
for each taxable year by requiring that the notice be sent by the Department to a
taxing authority only on the request of the taxing authority; and generally relating
to the constant yield tax rate.
BY repealing and reenacting, without amendments,
Article – Tax – Property
Section 2–205(a)
Annotated Code of Maryland
(2019 Replacement Volume and 2024 Supplement)
BY repealing
Article – Tax – Property
Section 2–205(c)
Annotated Code of Maryland
(2019 Replacement Volume and 2024 Supplement)
BY repealing and reenacting, with amendments,
Article – Tax – Property
Section 2–205
Annotated Code of Maryland
(2019 Replacement Volume and 2024 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Tax – Property
2–205.
(a) In this section, “taxing authority” means:
(1) the county council or board of county commissioners of a county;
(2) the City Council of Baltimore City; and
(3) the governing body of a municipal corporation. Ch. 71 2025 LAWS OF MARYLAND
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(b) (1) On or before February 14 of each year, the Department shall send each
taxing authority:
(i) an estimate of the total assessment of all real property in the
county or municipal corporation for the next taxable year; [and]
(II) IF REQUESTED BY A TA XING AUTHORITY IN AC CORDANCE
WITH SUBSECTION (C)(1) OF THIS SECTION, THE CONSTANT YI ELD TAX RATE; AND
[(ii)] (III) an estimate of the total assessment:
1. of all new construction and improvements in the county or
municipal corporation not assessed since the last date of finality; and
2. of all real property in the county or municipal corporation
that may be deleted from the assessment records.
(2) The Department shall notify each taxing authority of any change in the
estimated assessment of all real property in the county or the municipal corporation that
results from actions of a property tax assessment appeal board or the Maryland Tax Court.
[(c) (1) The Department shall notify each taxing authority A TAXING
AUTHORITY MAY , ON OR BEFORE FEBRUARY 1 EACH YEAR, REQUEST THAT THE
DEPARTMENT CALCULATE AND NOTIFY THE TAXIN G AUTHORITY of the constant yield
tax rate that will provide the same property tax revenue that is provided by the real
property tax rate that is in effect for the current taxable year.
(2) In calculating a constant yield tax rate for a taxable year, the
Department shall use an estimate of the total assessment of all real property for the next
taxable year exclusive of real property that appears for the 1st time on the assessment
records.
(3) (i) The Department may amend a constant yield tax rate only as
provided in this paragraph.
(ii) On or before April 15 each year, the Department may amend a
constant yield tax rate when a county or municipal corporation alters the homestead tax
credit percentage under § 9–105 of this article.
(iii) On or before May 15 each year, the Department may amend a
constant yield tax rate:
1. when directed to make a change by an enactment of the
General Assembly; WES MOORE, Governor Ch. 71
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2. to correct an error in the calculation of the constant yield
tax rate; or
3. to reflect a significant loss of taxable base, as determined
by the Director.]
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June
1, 2025.
Approved by the Governor, April 8, 2025.