SB 765

WES MOORE, Governor  Ch. 719
Chapter 719
  (Senate Bill 765)
AN ACT concerning
Property Taxes – Tax Sales, Heirs Legacy Protection Program, and Tax Credits
FOR the purpose of altering eligibility for certain services and programs offered by the
     State Tax Sale Ombudsman to include certain persons acting on behalf of a deceased
     homeowner or an heir or a legatee of a deceased homeowner; establishing an Heirs
     a Legacy Protection Program administered by the Ombudsman for the purpose of
     allowing heirs who inherit a dwelling to become the record title holder of the
     dwelling, preventing tax sales of dwellings inherited by heirs, and allowing heirs to
     remain in their homes; requiring the Ombudsman to conduct certain outreach,
     disseminate certain information, and provide certain grants to carry out the Heirs
     Legacy Protection Program; establishing the Heirs Legacy Protection Fund financed
     by the State and county governments to provide funding for the Heirs Legacy
     Protection Program; requiring interest earnings to be credited to the Fund; altering
     eligibility for the homeowners’ and homestead tax credits to include certain heirs
     who are not shown as the record title holder of a dwelling in the land records of the
     county for a certain period of time if certain requirements are met; and generally
     relating to protecting heirs from property tax sales, the Heirs Legacy Protection
     Program, and the State property tax credit programs.
BY repealing and reenacting, without amendments,
      Article – State Finance and Procurement
      Section 6–226(a)(2)(i) and (ii)
      Annotated Code of Maryland
      (2021 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
      Article – State Finance and Procurement
      Section 6–226(a)(2)(iii)212. and 213.
      Annotated Code of Maryland
      (2021 Replacement Volume and 2025 Supplement)
BY adding to
     Article – State Finance and Procurement
     Section 6–226(a)(2)(iii)214.
     Annotated Code of Maryland
     (2021 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
      Article – Tax – Property
      Section 2–112, 9–104(a)(9) through (12), (f), (l), and (u)(1) and 9–105(a)(7) through
  (9), (d)(6), and (g)
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Ch. 719  2026 LAWS OF MARYLAND
      Annotated Code of Maryland
      (2019 Replacement Volume and 2025 Supplement)
BY adding to
     Article – Tax – Property
     Section 2–113, 9–104(a)(9), and 9–105(a)(7)
     Annotated Code of Maryland
     (2019 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, without amendments,
      Article – Tax – Property
      Section 9–104(a)(1) and 9–105(a)(1) and (d)(7) and (8)
      Annotated Code of Maryland
      (2019 Replacement Volume and 2025 Supplement)
BY repealing
      Article – Tax – Property
      Section 9–104(a)(13)
      Annotated Code of Maryland
      (2019 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
      Chapter 717 of the Acts of the General Assembly of 2024, as amended by Chapters
  237, 409, and 410 of the Acts of the General Assembly of 2025
      Section 8(87) and (88)
BY adding to
     Chapter 717 of the Acts of the General Assembly of 2024, as amended by Chapters
  237, 409, and 410 of the Acts of the General Assembly of 2025
     Section 8(89)
      SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
  Article – State Finance and Procurement
6–226.
      (a)    (2)   (i)      This paragraph does not apply in fiscal years 2024 through 2028.
  (ii)   Notwithstanding any other provision of law, and unless
inconsistent with a federal law, grant agreement, or other federal requirement or with the
terms of a gift or settlement agreement, net interest on all State money allocated by the
State Treasurer under this section to special funds or accounts, and otherwise entitled to
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General
Fund of the State.
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  WES MOORE, Governor  Ch. 719
  (iii) The provisions of subparagraph (ii) of this paragraph do not
apply to the following funds:
  212.    the Department of Social and Economic Mobility Special
Fund; [and]
  213.    the Population Health Improvement Fund; AND
  214. THE HEIRS LEGACY PROTECTION FUND.
  Article – Tax – Property
2–112.
      (a)     (1)   In this section the following words have the meanings indicated.
  (2)   (I)    “Homeowner” has the meaning stated in § 9–105 of this article.
  (II)   “HOMEOWNER” INCLUDES:
  1.      THE ESTATE OF A DECEASED HOMEOWNER;
  2.      THE PERSONAL REPRESENTATIVE OF A DECEASED
HOMEOWNER; OR
  3.      AN INDIVIDUAL WHO IS AN HEIR OR LEGATEE OF A
DECEASED HOMEOWNER  WHO IS ENTITLED TO INHERIT THE DECEASED
HOMEOWNER’S DWELLING.
  (3)   “Tax” has the meaning stated in § 14–801 of this article.
      (b)     There is a State Tax Sale Ombudsman in the Department.
      (c)     The Ombudsman:
  (1)   shall be appointed by the Director;
  (2)   shall be in the management service of the State Personnel Management
System; and
  (3)    may be removed from office only after a hearing before the Department
and a finding of incompetency or other good cause.
      (d)     The Ombudsman shall:
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Ch. 719  2026 LAWS OF MARYLAND
  (1)    assist homeowners to understand the process for collection of
delinquent taxes;
  (2)    actively assist homeowners to apply for tax credits, discount programs,
and other public benefits that may assist the homeowners to pay delinquent taxes and
improve their financial situation;
  (3)   refer homeowners to legal services, housing counseling, and other social
services that may assist homeowners to pay delinquent taxes and improve their financial
situation;
  (4)   maintain a website that functions as a clearinghouse for information
concerning:
  (i)     the process for collection of delinquent taxes; and
  (ii)   services and programs that are available to assist homeowners
to pay delinquent taxes and improve their financial situation; and
  (5)    maintain a toll–free telephone number that a homeowner may call to
obtain individualized personal assistance with delinquent taxes.
       (e)   A county may, by law, establish a County Tax Sale Ombudsman to fulfill all
the responsibilities of the State Tax Sale Ombudsman under subsection (d) of this section
with respect to homeowners within the county.
     (f)   (1)   The Ombudsman shall contract with a vendor to operate an installment
payment program for the payment of taxes in which any homeowner may enroll.
  (2)   The installment payment program shall allow a homeowner to:
  (i)     make advance payments of taxes;
  (ii)    make payments of taxes currently due; or
  (iii)   make payments of taxes in arrears.
  (3)    (i)   A homeowner whose dwelling is subject to a deed of trust, a
mortgage, or any other encumbrance that includes the escrowing of tax payments may not
enroll in the installment payment program for the advance payment of taxes.
  (ii)   An advance payment of taxes is calculated by applying the
current property tax rate to the assessment of the homeowner’s property for the prior year.
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  WES MOORE, Governor  Ch. 719
  (iii) If the advance payment is different than the taxes due as finally
determined, the vendor shall:
  1.     bill the homeowner for the unpaid balance; or
  2.     refund any excess tax paid.
  (iv) The failure by a homeowner to make an advance payment under
the installment payment program may not be considered to be a failure to pay the property
tax when due except as provided under Title 10, Subtitle 1 of this article.
  (4)  The Ombudsman shall notify the collector to whom the taxes are owed
when a homeowner enters into an installment payment plan under this subsection.
  (5)   If a homeowner is in compliance with the terms of an installment
payment plan, the collector may not take action under Title 14, Subtitle 8 of this article to
collect any property taxes in arrears that are included in the installment payment plan.
  (6)    A homeowner is not in compliance with the terms of an installment
payment plan if the homeowner fails to make a payment for a period of 90 days after the
date the payment is due, or a longer period determined by the Ombudsman.
  (7)      If a homeowner is not in compliance with the terms of an installment
payment plan:
  (i)   the Ombudsman:
  1.     may terminate the installment payment plan; and
  2.     shall notify the collector to whom the taxes are owed; and
  (ii)  the collector may take action under Title 14, Subtitle 8 of this
article to collect any property taxes in arrears that were included in the installment
payment plan.
  (8)   The cost of the contract with the vendor to operate the installment
payment program shall be paid entirely by reasonable fees imposed on homeowners
enrolled in the program.
2–113.
      (A)    (1)    IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
  (2)    “DWELLING” HAS THE MEANING STATED IN § 9–105 OF THIS
ARTICLE.
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Ch. 719  2026 LAWS OF MARYLAND
  (3)   “HEIR” MEANS AN INDIVIDUAL WHO IS AN HEIR OR A LEGATEE OF
A DECEASED HOMEOWNER WHO IS ENTITLED TO INHERIT THE DECEASED
HOMEOWNER’S DWELLING.
  (4)   “HOMEOWNER” HAS THE MEANING STATED IN § 9–105 OF THIS
ARTICLE.
  (5)
  “OMBUDSMAN” MEANS THE STATE TAX SALE OMBUDSMAN
ESTABLISHED UNDER § 2–112 OF THIS SUBTITLE.
  (6)
  “PROGRAM” MEANS THE HEIRS LEGACY PROTECTION PROGRAM
ESTABLISHED UNDER THIS SECTION.
  (7) “RECORD TITLE HOLDER” MEANS THE PERSON WHO IS LISTED AS
THE OWNER OF A DWELLING ON A DEED RECORDED IN THE LAND RECORDS OF THE
COUNTY WHERE THE DWELLING IS LOCATED.
      (B)   (1)THERE IS AN HEIRS A LEGACY PROTECTION PROGRAM
ADMINISTERED BY THE OMBUDSMAN IN THE DEPARTMENT.
  (2)   THE PURPOSE OF THE PROGRAM IS TO:
  (I)
  ALLOW HEIRS WHO INHERIT A DWELLING TO BECOME THE
RECORD TITLE HOLDER OF THE DWELLING;
  (II)   PREVENT TAX SALES OF DWELLINGS INHERITED BY HEIRS;
AND
  (III) ALLOW HEIRS TO REMAIN IN THEIR HOMES.
      (C)   WHEN  THE DEPARTMENT RECEIVES INFORMATION THAT A
HOMEOWNER WHO WAS GRANTED THE CREDIT UNDER § 9–104 OR § 9–105 OF THIS
ARTICLE HAS DIED, THE OMBUDSMAN SHALL SEND A NOTICE BY MAIL TO THE
HOMEOWNER’S FORMER DWELLING NOTIFYING ANY HEIR THAT MAY BE RESIDING IN
THE DWELLING:
  (1) THAT THE HEIR MAY BE ELIGIBLE FOR THE CREDITS UNDER §
9–104 OR § 9–105 OF THIS ARTICLE;
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  WES MOORE, Governor  Ch. 719
  (2) HOW TO APPLY FOR THE CREDITS UNDER § 9–104 OR § 9–105 OF
THIS ARTICLE BY COMPLETING AN APPLICATION AND FILING AN AFFIDAVIT OF
HEIRSHIP;
  (3) WHY IT IS IMPORTANT FOR THE HEIR TO BECOME THE RECORD
TITLE HOLDER OF THE DWELLING;
  (4)THAT THE HEIR SHOULD CONTACT THE OMBUDSMAN FOR
INFORMATION ABOUT HOW TO BECOME THE RECORD TITLE HOLDER OF THE
DWELLING; AND
  (5)  THAT FREE LEGAL SERVICES AND GRANTS MAY BE AVAILABLE TO
ASSIST THE HEIR TO BECOME THE RECORD TITLE HOLDER OF THE DWELLING.
     (D)   IN COLLABORATION WITH THE REGISTERS OF WILLS, THE OMBUDSMAN
SHALL:
  (1)DEVELOP A BRIEF, EASY–TO–UNDERSTAND, STEP–BY–STEP GUIDE
TO PROBATING AN ESTATE AND BECOMING THE RECORD TITLE HOLDER OF A
DWELLING; AND
  (2) POST THE GUIDE DEVELOPED UNDER ITEM (1) OF THIS
SUBSECTION ON THE OMBUDSMAN’S WEBSITE AND PROVIDE THE GUIDE TO HEIRS
WHO CONTACT THE OMBUDSMAN.
     (E) (1) THE OMBUDSMAN SHALL PROVIDE GRANTS TO QUALIFIED LEGAL
SERVICES ORGANIZATIONS FOR THE PURPOSE OF PROVIDING FREE LEGAL
ASSISTANCE TO HEIRS TO NAVIGATE THE PROBATE PROCESS AND BECOME THE
RECORD TITLE HOLDER OF THEIR DWELLINGS.
  (2)   THE OMBUDSMAN SHALL DETERMINE:
  (I)THE LEGAL SERVICES ORGANIZATIONS TO RECEIVE GRANTS
UNDER PARAGRAPH (1) OF THIS SUBSECTION;
  (II)   THE AMOUNT OF GRANTS TO INDIVIDUAL LEGAL SERVICES
ORGANIZATIONS; AND
  (III) THE CUMULATIVE AMOUNT OF GRANTS TO AWARD IN EACH
FISCAL YEAR.
  (3)   AN HEIR MAY QUALIFY TO RECEIVE FREE LEGAL ASSISTANCE
FROM A LEGAL SERVICES ORGANIZATION THAT RECEIVES A GRANT UNDER
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Ch. 719  2026 LAWS OF MARYLAND
PARAGRAPH (1) OF THIS SUBSECTION IF THE HEIR’S DWELLING IS VALUED AT
$350,000 $450,000 OR LESS, AS SHOWN IN THE RECORDS OF THE DEPARTMENT.
     (F) (1) THE OMBUDSMAN SHALL PROVIDE GRANTS DIRECTLY TO HEIRS
TO PAY ALL OR PART OF PROBATE FEES UNDER § 2–206 OF THE ESTATES AND
TRUSTS ARTICLE OR, INHERITANCE TAXES UNDER TITLE 7, SUBTITLE 2 OF THE
TAX – GENERAL ARTICLE, OR ANY OTHER TAX OR FEE THAT AN HEIR MUST PAY TO
COMPLETE THE PROBATE PROCESS AND BECOME THE RECORD TITLE HOLDER OF
THE HEIR’S DWELLING.
  (2)
  AN HEIR MAY QUALIFY TO RECEIVE A GRANT IF THE HEIR’S
DWELLING IS VALUED AT $350,000 $450,000 OR LESS, AS SHOWN IN THE RECORDS
OF THE DEPARTMENT.
  (3)   THE OMBUDSMAN SHALL DETERMINE:
  (I)
  THE INDIVIDUAL HEIRS TO RECEIVE GRANTS UNDER
PARAGRAPH (1) OF THIS SUBSECTION;
  (II)   THE AMOUNT AND PURPOSE OF GRANTS TO INDIVIDUAL
HEIRS; AND
  (III) THE CUMULATIVE AMOUNT OF GRANTS TO BE AWARDED TO
ALL HEIRS IN EACH FISCAL YEAR.
  (4) THE OMBUDSMAN MAY ESTABLISH ADDITIONAL ELIGIBILITY
CRITERIA FOR GRANTS THAT PRIORITIZE LOW–INCOME, ELDERLY, AND DISABLED
HEIRS.
     (G)   THE OMBUDSMAN SHALL PROVIDE THE NAME OF EACH HEIR WHO
CONTACTS THE OMBUDSMAN AND THE ADDRESS OF THE HEIR’S DWELLING TO THE
COUNTY WHERE THE HEIR’S DWELLING IS LOCATED FOR INCLUSION ON THE
COUNTY’S REGISTRY OF PROPERTIES TO BE WITHHELD FROM TAX SALE UNDER §
14–811(J) OF THIS ARTICLE.
     (H) (1) IN THIS SUBSECTION, “FUND” MEANS THE HEIRS LEGACY
PROTECTION FUND.
  (2)   THERE IS AN HEIRS A LEGACY PROTECTION FUND.
  (3)   THE PURPOSE OF THE FUND IS TO FINANCE THE PROGRAM.
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  WES MOORE, Governor  Ch. 719
  (4)   THE DEPARTMENT SHALL ADMINISTER THE FUND.
  (5) (I)     THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE.
  (II)THE STATE TREASURER SHALL HOLD THE  FUND
SEPARATELY, AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND.
  (6)   THE FUND CONSISTS OF:
  (I)    MONEY APPROPRIATED IN THE STATE BUDGET TO THE
FUND;
  (II) MONEY   PAID    BY   COUNTY   GOVERNMENTS   UNDER
PARAGRAPH (8) OF THIS SUBSECTION;
  (III) INTEREST EARNINGS; AND
  (IV) ANY OTHER MONEY FROM ANY OTHER SOURCE ACCEPTED
FOR THE BENEFIT OF THE FUND.
  (7) FOR EACH FISCAL YEAR, THE GOVERNOR SHALL INCLUDE IN THE
ANNUAL BUDGET BILL AN APPROPRIATION OF $250,000 OF THE INTEREST ON
OVERDUE STATE PROPERTY TAX TO THE FUND.
  (8) (I)    FOR EACH FISCAL YEAR, COUNTY GOVERNMENTS SHALL
COLLECTIVELY PAY $500,000 TO THE FUND.
  (II) THE AMOUNT REQUIRED TO BE PAID UNDER
SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL BE ALLOCATED AMONG THE
COUNTIES BASED ON THE NUMBER OF REAL PROPERTY ACCOUNTS IN EACH COUNTY
AS A PERCENTAGE OF THE TOTAL NUMBER OF REAL PROPERTY ACCOUNTS
STATEWIDE AS OF JULY 1 OF THE PRECEDING FISCAL YEAR.
  (III) THE AMOUNT PAID BY EACH COUNTY UNDER THIS
PARAGRAPH SHALL BE DERIVED FROM INTEREST ON OVERDUE COUNTY PROPERTY
TAX.
  (IV)EACH COUNTY SHALL REMIT TO THE DEPARTMENT THE
COUNTY’S SHARE OF THE AMOUNT REQUIRED UNDER SUBPARAGRAPH (I) OF THIS
PARAGRAPH ON OR BEFORE THE FIRST DAY OF EACH FISCAL YEAR.
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Ch. 719  2026 LAWS OF MARYLAND
  (9)    (I)
  THE FUND MAY BE USED ONLY FOR ANY EXPENSES
ASSOCIATED WITH THE PROGRAM.
  (II) THE FUND MAY NOT BE USED FOR ANY EXPENSES OF THE
OFFICE OF THE STATE TAX SALE OMBUDSMAN THAT ARE NOT DIRECTLY RELATED
TO THE PROGRAM.
  (10) (I)
  THE STATE TREASURER SHALL INVEST THE MONEY OF THE
FUND IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED.
  (II) ANY INTEREST EARNINGS OF THE FUND SHALL BE
CREDITED TO THE FUND.
  (11) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN
ACCORDANCE WITH THE STATE BUDGET.
  (12) THE FUND IS THE EXCLUSIVE SOURCE OF FUNDING FOR THE
PROGRAM.
Chapter 717 of the Acts of 2024, as amended by Chapters 237, 409, and 410 of the
  Acts of 2025
       SECTION 8. AND BE IT FURTHER ENACTED, That, notwithstanding any other
provision of law, and unless inconsistent with a federal law, grant agreement, or other
federal requirement, or with the terms of a gift or settlement agreement, for fiscal years
2024 through 2028, net interest on all State money allocated by the State Treasurer under
§ 6–226 of the State Finance and Procurement Article to special funds or accounts, and
otherwise entitled to receive interest earnings, as accounted for by the Comptroller, shall
accrue to the General Fund of the State, with the exception of the following funds:
  (87)   the Academic Excellence Fund; [and]
  (88)   the Abandoned and Neglected Cemeteries Fund; AND
  (89) THE HEIRS LEGACY PROTECTION FUND.
       SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
  Article – Tax – Property
9–104.
      (a)    (1)    In this section the following words have the meanings indicated.
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  WES MOORE, Governor  Ch. 719
  (9)      “HEIR” MEANS AN INDIVIDUAL WHO IS AN HEIR OR A LEGATEE OF
A DECEASED HOMEOWNER WHO IS ENTITLED TO INHERIT THE DECEASED
HOMEOWNER’S DWELLING.
  [(9)] (10)       (i)   “Homeowner” means an individual who:
  1.    on July 1 of the taxable year for which the tax credit is to
be allowed:
  A.    actually resides in a dwelling in which the individual has
a legal interest; or
  B.     under a court order or separation agreement, permits a
spouse, a former spouse, or a child of the individual’s family to reside without payment of
rent in a dwelling in which the individual has a legal interest; or
  2.    A.     is a home purchaser; and
  B.     actually resides in a dwelling in which the individual has
a legal interest, whether or not the individual resides in the dwelling on July 1 of the
taxable year for which the tax credit is sought.
  (ii)   “Homeowner” includes a beneficiary of a trust described in 42
U.S.C. § 1396p(d)(4), or a trust established for the benefit of an individual with a disability
by an individual other than the beneficiary and that is funded with assets that were never
owned or controlled by the beneficiary, if, on July 1 of the taxable year for which the tax
credit is to be allowed, the beneficiary of the trust is an individual who actually resides in
the dwelling.
  [(10)] (11) “Home purchaser” means an individual who purchases a
dwelling in the taxable year for which the tax credit under this section is sought.
  [(11)] (12) “Legal interest” includes an interest in a dwelling:
  (i)     as sole owner;
  (ii)    as a joint tenant;
  (iii)   as a tenant in common;
  (iv)    as a tenant by the entireties;
  (v)     through membership in a cooperative;
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 Ch. 719  2026 LAWS OF MARYLAND
  (vi)     under a land installment contract, as defined in § 10–101 of the
Real Property Article;
  (vii)   as a holder of a life estate; OR
  (viii) under a continuing care contract for an independent living unit
at a continuing care facility for the aged, which means a nontransferable agreement
between a continuing care facility for the aged as defined in § 7–206 of this article and an
occupant of an independent living unit, which agreement provides that the occupant may
reside in the unit until termination under the terms of the contract[; or
  (ix) as a surviving family member who stands to inherit the dwelling
of a deceased homeowner under the terms of:
  1.     the deceased homeowner’s will or trust or a nonprobate
instrument of writing; or
  2.     under the laws of intestate succession].
  [(12)] (13) “Net worth” means the sum of the current market value of all
assets, less any outstanding liability.
  [(13) “Surviving family member” means an individual related to a deceased
homeowner by blood, adoption, or marriage.]
       (f)   (1) A homeowner who meets the requirements of this section shall be
granted the property tax credit under this section against the property tax imposed on the
real property of the dwelling.
  (2) (I)   AN HEIR WHO IS NOT SHOWN AS THE RECORD TITLE
HOLDER OF A DWELLING IN THE LAND RECORDS OF THE COUNTY SHALL BE
GRANTED THE PROPERTY TAX CREDIT UNDER THIS SECTION IF THE HEIR:
  1.
  FILES AN APPLICATION  IN   ACCORDANCE      WITH
SUBSECTION (D)(6) (L) OF THIS SECTION;
  2.
  MEETS THE ELIGIBILITY REQUIREMENTS FOR A
HOMEOWNER UNDER THIS SECTION; AND
  3.     MEETS ALL THE OTHER REQUIREMENTS OF THIS
SECTION.
  (II)    AN HEIR WHO IS NOT SHOWN AS THE RECORD TITLE
HOLDER OF THE DWELLING IN THE LAND RECORDS OF THE COUNTY MAY BE
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  WES MOORE, Governor  Ch. 719
GRANTED THE TAX CREDIT UNDER THIS SECTION FOR A MAXIMUM OF 3 TAXABLE
YEARS.
  (III) AFTER RECEIVING THE TAX CREDIT UNDER THIS SECTION
FOR 3 TAXABLE YEARS, AN HEIR MAY RECEIVE THE TAX CREDIT UNDER THIS
SECTION ONLY IF THE HEIR IS SHOWN AS THE RECORD TITLE HOLDER OF THE
DWELLING IN THE LAND RECORDS OF THE COUNTY.
      (l)     (1)   On or before the February 15 that precedes the taxable year in which
the property tax credit under this section is sought, the Department shall make available
that year’s property tax credit application form.
  (2)   (i)     Except as provided in subsections (m), (u), and (v) of this section,
on or before October 1 of the taxable year in which the property tax credit under this section
is sought, a homeowner may apply to the Department for a property tax credit under this
section.
  (ii)   The application shall be made on the form that the Department
provides.
  (3)    (i)    For good cause, the Department may accept an application after
October 1 but on or before October 31 of the taxable year.
  (ii)   The Department shall notify the homeowner in writing of its
acceptance or rejection of a late application.
  (4)    The homeowner shall state under oath that the facts in the application
are true.
  (5)    (i)    Except as provided in subparagraph (ii) of this paragraph, to
substantiate the application, the applicant may be required to provide a copy of an income
tax return, or other evidence detailing gross income or net worth.
  (ii)   An applicant who is required to substantiate an application
under subparagraph (i) of this paragraph may, under penalties of perjury, attest to gross
income in lieu of providing an income tax return if the applicant was not required to and
did not file an income tax return.
  (6)    TO APPLY FOR THE CREDIT UNDER THIS SECTION, AN HEIR
SHALL:
  (I)    COMPLETE THE APPLICATION UNDER THIS SUBSECTION;
  (II) COMPLETE AN AFFIDAVIT UNDER OATH ON THE FORM THE
DEPARTMENT PROVIDES ATTESTING THAT THE INDIVIDUAL IS AN HEIR OR A
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 Ch. 719  2026 LAWS OF MARYLAND
LEGATEE OF A DECEASED HOMEOWNER WHO IS ENTITLED TO INHERIT THE
DECEASED HOMEOWNER’S DWELLING; AND
  (III) ATTACH TO THE APPLICATION A COPY OF THE DEATH
CERTIFICATE OF THE DECEASED HOMEOWNER FROM WHOM THE HEIR INHERITED
THE DWELLING.
      (u)   (1)     Under the conditions set forth in this subsection, the Department may
accept an application from a homeowner within:
  (i)    1 year after April 15 of the taxable year for which the property
tax credit under this section is sought, if the homeowner:
  1.     is applying for the first time; or
  2.     has filed an application on or before October 1 in each of
the 3 taxable years immediately preceding the taxable year for which the credit is sought;
or
  (ii)  3 years after April 15 of the taxable year for which a credit is
sought, if the homeowner is:
  1.     A.     at least 70 years old as of the taxable year for which
a credit is sought; [or]
  B.    enrolled in the Homeowner  Protection   Program
established under Title 14, Subtitle 8, Part VII of this article; OR
  C.     AN HEIR; and
  2.    was eligible for the credit under this section for the taxable
year for which the credit is sought.
9–105.
       (a)   (1)    In this section the following words have the meanings indicated.
  (7)    “HEIR” MEANS AN INDIVIDUAL WHO IS AN HEIR OR A LEGATEE OF
A DECEASED HOMEOWNER WHO IS ENTITLED TO INHERIT THE DECEASED
HOMEOWNER’S DWELLING.
  [(7)] (8)    “Homeowner” means an individual who has a legal interest in a
dwelling or who is an active member of an agricultural ownership entity that has a legal
interest in a dwelling.
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  WES MOORE, Governor  Ch. 719
  [(8)] (9)      “Legal interest” means an interest in a dwelling:
  (i)     as a sole owner;
  (ii)    as a joint tenant;
  (iii)   as a tenant in common;
  (iv)    as a tenant by the entireties;
  (v)     through membership in a cooperative;
  (vi)     under a land installment contract, as defined in § 10–101 of the
Real Property Article;
  (vii)   as a holder of a life estate; or
  (viii) as a settlor, grantor, or beneficiary of a trust if:
  1.     the settlor, grantor, or beneficiary of the trust does not pay
rent or other remuneration to reside in the dwelling; and
  2.      legal title to the dwelling is held in the name of the trust
or in the names of the trustees for the trust.
  [(9)] (10)  “Taxable assessment” means the assessment on which the
property tax rate was imposed in the preceding taxable year, adjusted by the phased–in
assessment increase resulting from a revaluation under § 8–104(c)(1)(iii) of this article, less
the amount of any assessment on which a property tax credit under this section is
authorized.
       (d)    (6)   (i)   Except as provided under paragraph (7) of this subsection, to
qualify for the credit under this section, a homeowner shall submit an application for the
credit to the Department as provided in this paragraph.
  (ii)    The application shall:
  1.     be made on the form that the Department provides;
  2.     provide the information required by the form;
  3.     include a statement by the homeowner under oath that the
facts stated in the application are true, correct, and complete; and
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 Ch. 719  2026 LAWS OF MARYLAND
  4.      except as provided in subparagraph (iii) of this paragraph,
be filed on or before the May 1 preceding the first taxable year for which the property tax
credit under this section is to be allowed.
  (iii) For a dwelling that was last transferred for consideration to new
ownership on or before December 31, 2007, an application shall be filed with the
Department on or before December 30, 2013, or the Department may not authorize and the
State, county, and municipal corporation may not grant the property tax credit under this
section:
  1.      for the taxable year beginning July 1, 2014; and
  2.    for a taxable year beginning after June 30, 2015, unless an
application is filed as required under subparagraphs (i) and (ii) of this paragraph.
  (IV)   TO APPLY FOR THE CREDIT UNDER THIS SECTION, AN HEIR
SHALL:
  1.      COMPLETE       THE     APPLICATION        UNDER       THIS
PARAGRAPH;
  2.
  COMPLETE AN AFFIDAVIT UNDER OATH ON THE FORM
THE DEPARTMENT PROVIDES ATTESTING THAT THE INDIVIDUAL IS AN HEIR OR A
LEGATEE OF A DECEASED HOMEOWNER WHO IS ENTITLED TO INHERIT THE
DECEASED HOMEOWNER’S DWELLING; AND
  3.
  ATTACH TO THE APPLICATION A COPY OF THE DEATH
CERTIFICATE OF THE DECEASED HOMEOWNER FROM WHOM THE HEIR INHERITED
THE DWELLING.
  [(iv)] (V)    If a dwelling previously received a credit under this section
and failed to qualify for 1 taxable year because of a failure to file the application required
under this paragraph, the Department:
  1.     shall grant the credit for the dwelling for the next
following taxable year on the timely filing of the application by the same homeowner who
previously received the credit; and
  2.     shall calculate the prior year’s taxable assessment for the
dwelling as if the credit had not been lost for the 1 intervening taxable year.
  [(v)] (VI)  The Department shall provide a homeowner the option to
submit the application required under this paragraph electronically on the Department’s
website.
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  WES MOORE, Governor  Ch. 719
  (7)    If a homeowner submits an application to the Department under this
section and the Department determines that the homeowner was eligible for the credit in
the prior taxable year but failed to file an application for the credit as required under this
subsection:
  (i)   the homeowner shall be retroactively qualified for the
Homestead Property Tax Credit Program for the prior taxable year; and
  (ii)   the Department shall calculate the prior year’s taxable
assessment as if the credit had been granted for the prior taxable year.
  (8)      (i)    This paragraph shall be interpreted broadly to apply to any
homeowner who:
  1.    is at least 70 years of age;
  2.      was eligible for the credit in the prior taxable year but
failed to file an application for the credit; and
  3.    applies for a credit for the current taxable year.
  (ii)   For homeowners that meet the criteria under subparagraph (i) of
this paragraph, the Department shall calculate the current year’s taxable assessment as if
the credit had been granted for the prior taxable year.
  (iii) A homeowner who meets the criteria under subparagraph (i) of
this paragraph is not due a reimbursement of property taxes paid in prior taxable years.
      (g)    (1) A homeowner who meets the requirements of this section shall be
granted the property tax credit under this section against the State, county, and municipal
corporation property tax and any property tax imposed for a bicounty commission imposed
on the real property of the dwelling.
  (2)    (I)    AN HEIR WHO IS NOT SHOWN AS THE RECORD TITLE
HOLDER OF A DWELLING IN THE LAND RECORDS OF THE COUNTY SHALL BE
GRANTED THE PROPERTY TAX CREDIT UNDER THIS SECTION IF THE HEIR:
  1.
  FILES AN  APPLICATION       IN   ACCORDANCE        WITH
SUBSECTION (D)(6) OF THIS SECTION;
  2.    MEETS THE ELIGIBILITY REQUIREMENTS FOR A
HOMEOWNER UNDER THIS SECTION; AND
  3.    MEETS ALL THE OTHER REQUIREMENTS OF THIS
SECTION.
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Ch. 719  2026 LAWS OF MARYLAND
  (II)   AN HEIR WHO IS NOT SHOWN AS THE RECORD TITLE
HOLDER OF THE DWELLING IN THE LAND RECORDS OF THE COUNTY MAY BE
GRANTED THE TAX CREDIT UNDER THIS SECTION FOR A MAXIMUM OF 3 TAXABLE
YEARS.
  (III) AFTER RECEIVING THE TAX CREDIT UNDER THIS SECTION
FOR 3 TAXABLE YEARS, AN HEIR MAY RECEIVE THE TAX CREDIT UNDER THIS
SECTION ONLY IF THE HEIR IS SHOWN AS THE RECORD TITLE HOLDER OF THE
DWELLING IN THE LAND RECORDS OF THE COUNTY.
      SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be
applicable to all taxable years beginning after June 30, 2026.
       SECTION 4. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take
effect July 1, 2026 July 1, 2027.
       SECTION 5. AND BE IT FURTHER ENACTED, That, except as provided in Section
4 of this Act, this Act shall take effect June 1, 2026.
Approved by the Governor, May 26, 2026.
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