A Maryland lawmaker wants to make property tax deductions for unpaid properties tax that would make it easier for people to make the payments.
Maryland lawmakers passed a bill Wednesday that would allow people to deduct up to $50,000 in unpaid property tax that was due to their property from their state income tax bill.
House Bill 489 would make this property tax exemption a taxable deduction for all state income taxes owed to individuals and businesses.
The bill, which was approved by the state House of Delegates, would also exempt from property tax payments to people who have paid more than $5,000 for personal property in the last three years.
If passed by the Senate, the bill would go into effect in 2018.
Marylanders who have unpaid property on their books could also get the property tax deduction, if they have been paying their taxes at least twice a year.
“The state has an obligation to make it as easy as possible for people who are struggling to make ends meet to take advantage of these tax credits,” said Rep. David Tinkler, a Republican from the Baltimore suburbs who sponsored the bill.
“We’ve seen this in other states that have done it.
We’re going to continue to do it here in Maryland.”
The House passed the bill in January.
The state Senate is expected to consider the bill Tuesday.
If signed into law, the law would make the property deduction a taxable tax deduction for the first time.
In Maryland, property tax is assessed on the property and is usually paid at the time of sale, not at the end of the year.
The state has a property tax levy that has increased every year since 2006 and has been scheduled to increase again this year, at least $1 billion.