Introducing Legislation To Add Vacant Property Tax To Vacant Lots

This legislation adds the vacant property tax to vacant lots. In 2024, after several years of debate, the General Assembly passed legislation authorizing Baltimore City and each jurisdiction to tax vacant properties and vacant lots at a different rate. Thank you to Delegate Boyce and Senator Hayes for their incredible work to get this over the finish line. 

Last year, the City Council passed my bill to add a vacant property tax to vacant structures only. The bill mandated the tax to be three times the current property tax rate in the first year, and four times the rate every year after that. In addition, there was a sunset provision, and the tax would not be levied on tax bills until proper notice is provided, and not until the tax bills are sent out in July of 2026. 

This legislation before us adds the vacant property tax to vacant lots, as authorized in the state legislation. It also changes the rate to a flat four times the rate and removes the sunset provision. The notice requirements, reporting, and July 2026 timeframe are all the same as the last bill.

I do not think we will ever collect this vacancy tax. It is not for money making purposes. Ultimately, the reason for a vacant property and vacant lot tax is to incentivize the owner to do something with the property, such as rehab the vacant building or build on the vacant lot. Alternatively, the liens will get higher than the assessed value of the property much quicker, so that the City can foreclose on the vacant property or lot through the In Rem process and take possession of the property. The city will then partner with the community to ensure the property returns to productive use. 

The reason we did not include vacant lots in the first legislation last year was a concern about side lots that owners were starting to purchase, and community gardens on private property, where the owner was informed and either gave permission or never responded. In addition, the data on vacant lots is sometimes inaccurate, with some lots actually having buildings on them, or some buildings listed that are actually gone. DHCD is conducting a survey to improve the data and find the uses on each lot. Although they said it would be completed by June, the study has just begun. I believe we can still move forward with our legislation despite it not being completed, and send a complete list of vacant properties and lots getting the tax to the General Assembly by December 1 as mandated in the state legislation.

There are ways to address the side lot and community garden issue. First, DHCD could potentially develop a USE permit similar to what we have for buildings. If a vacant lot has a USE permit, based on specific criteria, then it would not get the tax. This all has to be worked out. Since USE permits are not in the code, we did not include them here. However, it can be done through regulation. Thank you to Councilman Mark Parker for this idea.

I am looking forward to the discussion on this bill and working with our colleagues to complete this initiative.