Ramos on Introducing the Vacant Property Tax Rate Today
Today we are introducing the vacant property tax. With the signing of HB2, sponsored by Delegate Boyce and Senator Hayes, the General Assembly has given its required permission for all jurisdictions to tax vacant and abandoned properties at a different property tax rate than other properties. This is a very big step in the quest for eliminating vacant properties in our city.
The idea is not to raise funds. We are under no illusion that anyone will pay this tax. Instead, the idea is to continue to increase the liens on vacant properties so that we can get more of them into the new In Rem Foreclosure process. In Rem is used when the liens exceed the value of the property. The city can then foreclose on the property and take possession. In our analysis of properties from this past fiscal year citywide, roughly 28% of the vacant properties are eligible for In Rem which is roughly 3,600 properties. With the vacant property tax, I can anticipate an additional 10-20% becoming eligible in the next year and it will grow exponentially after that. The potential of the city acquiring properties through In Rem. That’s why In Rem is game changing and the vacancy tax helps.
I am so excited to work on this with my colleagues. This is the next step in our work together to eliminate vacant properties. Mayor Scott, GBC, and BUILD came together to announce historic undertakings related to raising the funds needed to rehabilitate vacant properties. Governor Moore signed an executive order recommitting the State to $50million per year, and creating a Council that would coordinate efforts around our shared goals. Mayor Scott and Council President Mosby then introduced one part of the funds through the Affordable Housing TIF, and now we are introducing the vacant property tax. The momentum here is historic. The outcome of intentional mixed income communities across the city is within reach!
The bill is structured as follows:
The tax will be established starting the 2026-2027 tax year. It will be 3 times the current tax rate. That will go up to 4 times the current tax rate in subsequent years.
There will be notices sent ahead of time to owners with properties that have Vacant Building Notices on them.
The tax and legislation has to be reauthorized in three years.
This is one of the many pieces of the puzzle needed to eliminate vacant properties. I look forward to working with my colleagues on the City Council, the Scott Administration, DHCD, the state and so many others.