Vacancy Tax legislation in the General Assembly
Delegate Regina Boyce and Senator Antonio Hayes have introduced a bill (HB002/SB138) to give Baltimore City permission to set a special tax rate for vacant and abandoned properties and vacant lots. Once this passes, I'll introduce the legislation to create this tax here.
The vacancy tax is critical to disincentivize speculators from holding vacant properties, and to help move properties to the In Rem process for acquisition. There are hearings on this bill in the General Assembly this week, and I will be present to testify.
For years we have been talking about creating a vacancy tax, but need permission from the General Assembly to do so. Currently under state law, each jurisdiction can set their own tax rate, but every property has to have the same rate. Under this bill, properties that are designated vacant and abandoned and vacant lots can have a different rate. The City Council will still have to create the rate.
The purpose of doing this is twofold:
To disincentivize speculation and investors holding vacant properties without doing anything with them. Right now, taxes are low for properties that are vacant, and speculators and investors can just hold them until they feel necessary. Adding a significant tax to these vacant properties will hopefully encourage the rebuilding of the property.
To make properties eligible for In Rem. The likelihood of the owner of these properties paying the taxes is minimal. Many of the properties are owned by people who are deceased, or defunct LLCs. Increasing the liens to assist in stacking them up to make the properties eligible for In Rem will allow the City to take action quicker. Code enforcement is understaffed, and while we can increase the citations (which we have done), an automatic tax would accomplish the goals quicker.
To track these bills, you can view the Maryland General Assembly website. If you want to participate in testimony or advocacy, please contact Delegate Boyce’s office or our office.