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SB 58MARYLANDSession 2026State BillSigned into law

Enacted

Maryland authorizes property tax credits for former gas stations and provides state reimbursement

Original title: Property Tax Credit - Retail Service Station Conversions

Last action · May 26, 2026: Approved by the Governor - Chapter 642Sponsors: Ben Brooks and 8 others

Companion · HB 161same policy, House version

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What This Bill Does

Maryland authorizes local governments and Baltimore City to grant property tax credits for former retail service stations converted to other retail, residential, or mixed uses, and requires the State to reimburse local jurisdictions for half of the forgone tax revenue.

Why it matters

Property owners converting former gas station sites gain potential local tax relief, while local governments receive partial state reimbursement for the resulting tax revenue reduction, provided environmental cleanup requirements are met.

Background

The legislation amends the Tax-Property Article of the Annotated Code of Maryland by adding Section 9-276. context

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

Baltimore City and county and municipal governments

Local governments are authorized to create property tax credits for converted service station properties and are eligible to receive state reimbursement equal to 50% of forgone revenue.

Directly affected

Property owners converting retail service stations

Property owners may apply for local property tax credits to help offset the costs of removing underground storage tanks and cleaning up contamination.

Key Facts

Local governments and Baltimore City may enact laws to grant property tax credits on real property converted from a retail service station to another retail use, residential use, or mixed retail and residential use.
Tax credits cannot be granted unless underground storage tanks located or formerly located on the property have been permanently closed according to Department of the Environment regulations.
Excluded from qualifying retail uses are discount stores, self-service storage facilities, licensed cigarette retailers, other tobacco product retailers or tobacconists, electronic smoking device retailers or vape shop vendors, and Class A retail alcoholic beverage license holders.
The State must pay each county or municipal corporation granting the tax credit an amount equal to 50% of the property tax revenue that would have been collected without the credit.

Show all 7 facts

Local jurisdictions may determine by law the amount, duration, and additional eligibility criteria for the tax credit, as well as application and processing procedures.
The General Assembly states its intent that the tax credit be used primarily to defray costs associated with removing underground storage tanks and remediating contamination.
The Act takes effect on June 1, 2026, and applies to all taxable years beginning after June 30, 2026.

Frequently Asked Questions

Which properties are eligible for the new property tax credit?

Real property that has been converted from a retail service station to another retail use, residential use, or a mixed retail and residential use is eligible, provided underground storage tanks have been permanently closed according to state environmental regulations and the local government has enacted the credit by law.

Does the State provide any financial support to local governments that offer this tax credit?

Yes. The State must pay each county or municipal corporation that grants the tax credit an amount equal to 50% of the property tax revenue that would have been collected if the credit had not been granted.

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Where This Stands

Current status: Signed into law.

Procedural history

19 actions

May 26, 2026Governor of MarylandEnrolled
Approved by the Governor - Chapter 642
Apr 8, 2026SenateFloor
Passed Enrolled
Apr 8, 2026SenateFloor
Third Reading Passed (44-0)
Apr 8, 2026SenateFloor
Senate Concurs House Amendments
Apr 7, 2026HouseFloor
Third Reading Passed (128-6)
Apr 3, 2026HouseFloor
Second Reading Passed with Amendments

Show 13 earlier actions

Apr 3, 2026House
Favorable with Amendments { 433126/1 Adopted
Apr 2, 2026HouseCommittee
Favorable with Amendments Report by Ways and Means
Mar 16, 2026House
Hearing 3/24 at 1:00 p.m.
Feb 18, 2026HouseCommittee
Referred Ways and Means
Feb 17, 2026SenateFloor
Third Reading Passed (42-0)
Feb 12, 2026SenateFloor
Second Reading Passed with Amendments
Feb 12, 2026Senate
Favorable with Amendments { 743020/1 Adopted
Feb 11, 2026SenateCommittee
Favorable with Amendments Report by Budget and Taxation
Jan 15, 2026Senate
Hearing 1/21 at 10:00 a.m.
Jan 15, 2026Senate
Hearing canceled
Jan 15, 2026Senate
Hearing 1/21 at 10:00 a.m.
Jan 14, 2026SenateIntroduced
First Reading Budget and Taxation
Sep 10, 2025SenateIntroduced
Pre-filed

Version history

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