Baltimore City wants to raise property tax rates for owners of vacant properties.
The bill introduced to the City Council on Monday night would triple the property tax rate for the first full tax year in which a property is classified as a vacant structure. Real estate tax rates increase by four times the original tax rate each year the property remains vacant.
“We’re here to introduce legislation that would keep vacant properties and the speculators who own them from being on the same playing field as middle-class homeowners across the city. will be subject to a higher tax rate,” Council President Nick Mosby said.
This bill was passed unanimously. According to the bill, the first qualifying tax year would be from July 1, 2026 to June 30, 2027, and the insurance could expire in 2029.
The city has about 13,000 vacant homes, and Maryland Gov. Wes Moore last week set a goal to transition at least 5,000 vacant homes into positive outcomes, such as homeownership, over the next five years. On Sunday at Macedonia Baptist Church in the Upton area, National Housing Secretary Jacob Day pledged $1 billion to the effort over the next 15 years. Mayor Brandon Scott said the 15-year effort will cost $3 billion.
A bill to create a tax increment financing district that would include about 8,000 pieces of city-owned land is before the City Council’s Committee of the Whole. The TIF mechanism allows the city to borrow millions of dollars to fund the acquisition, rehabilitation, and sale of vacant properties. The debt would be repaid through new tax revenue expected to be generated by improvements to the property.
“This definitely allows us to add properties that are eligible for (foreclosure) and ultimately available for redevelopment. This is a really big deal and a really exciting time for Baltimore.” said City Councilmember Odette Ramos.
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