Mayor Scott announces property tax relief, sale reforms | The Locally Times
The city's plan lowers the effective residential tax rate below $2.00 per $100 of assessed value while establishing tax sale payment plans for at-risk homeowners.
On February 9, 2026, Mayor Brandon M. Scott announced two significant initiatives designed to reshape the property tax landscape and reform the tax sale process for Baltimore residents. The city's strategy aims to reduce the effective property tax rate for residential homeowners and introduce new protections for those facing tax sale (City of Baltimore, February 9, 2026, announcement). The announcement details a plan to lower the effective residential tax rate from $2.048 to $1.99 per $100 of assessed value. This reduction is part of a broader effort to improve the city's property tax competitiveness and ease financial burdens for vulnerable residents, according to the city's communication. Mayor Scott indicated that the city's property tax rate has historically made it challenging to attract new residents and has placed a burden on existing families, particularly older adults. The announced changes seek to ensure that current residents benefit from the city's growth (City of Baltimore, February 9, 2026, announcement). ## Property Tax Relief Strategy Outlined The property tax relief strategy comprises three distinct components. The first involves adjusting the Homestead Tax Credit cap. Legislation to implement this change, moving the cap from 4% to 6%, was scheduled for introduction at the February 9, 2026, City Council meeting, with an effective date for the FY 2027 tax season. State law permits local jurisdictions to set this cap between 0% and 10%, and the city's current 4% cap has been in place since the 1990s. The city's announcement states that this adjustment, when combined with other proposed changes, will generate sufficient revenue to lower property taxes for the majority of residential homeowners. This is expected to result in a decreased or net neutral overall tax burden for most affected residents (City of Baltimore, February 9, 2026, announcement). The second component focuses on expanding the Targeted Homeowners Tax Credit. This expansion, slated for presentation to the Board of Estimates alongside Mayor Scott's FY 2027 Budget, intends to drastically increase the credit. The city projects this will reduce the effective homeowner tax rate to $1.99 per $100 of assessed value. The expanded credit is designed to offset the amounts owed by property owners impacted by the adjusted Homestead Tax Credit, leading to lower than expected tax receipts in FY 2027 for tens of thousands of residents. City Council Vice President Sharon Green Middleton indicated support for the strategy, noting it provides meaningful relief without increasing taxes or compromising essential city services. Budget and Appropriations Committee Chair Councilwoman Danielle McCray stated the bill reflects a fiscally responsible approach to preserving community stability and supporting middle neighborhoods (City of Baltimore, February 9, 2026, announcement). The third part of the strategy involves boosting enrollment in state tax credit programs, specifically the State Homeowners' Property Tax Credit and the Renter's Tax Credit. Analysis of U.S. Census and property assessment data indicates that thousands of eligible Baltimore residents are not currently enrolled in these programs. To address this, the city plans an ongoing campaign, partnering with nonprofit organizations, to identify and assist eligible households with the enrollment process (City of Baltimore, February 9, 2026, announcement). ## Tax Sale Process Reforms In addition to property tax relief, the city announced significant changes to its tax sale process. These reforms stem from an agreement reached with Maryland Legal Aid to resolve ongoing legal challenges against the city's tax sale system. The changes include raising the minimum bid for tax sale to the assessed value of the property. This measure aims to prevent homeowners from losing equity when their property transfers through the tax sale process (City of Baltimore, February 9, 2026, announcement). Furthermore, the city will establish payment plans for residents at risk of facing tax sale. This marks the first time in the city's history that such payment plans will be available. The city's announcement indicates that these plans will allow residents to address large, overdue tax bills through installments, thereby helping legacy homeowners retain their properties. Establishing these payment plans requires additional action by the City Council. Vicki Schultz, Executive Director of Maryland Legal Aid, stated that the agreement represents meaningful steps toward building a tax sale system that is fairer, more accountable, and grounded in the real value of people's homes (City of Baltimore, February 9, 2026, announcement). ## Unanswered Questions Remain While the city's announcement outlines the core components of these initiatives, several details remain unspecified. The projected fiscal impact of these combined tax relief and reform measures on the city's overall budget is not detailed in the provided information. The specific eligibility criteria and terms for the newly proposed tax sale payment plans are not publicly available. The precise nature of the "ongoing legal challenges" brought by Maryland Legal Aid against the city's tax sale system, which led to this agreement, is not described. Additionally, the structure of the city's campaign to boost enrollment in state tax credit programs, the resources allocated to it, and the names of the partnering nonprofit organizations are not listed. The timeline for City Council action on establishing payment plans is also not provided (City of Baltimore, February 9, 2026, announcement).