Maryland Bill Requires Filing Fees on Property Tax Appeals for the First Time

Maryland House Bill HB0896 was introduced by House Delegate Kris Fair in late February. It requires filing fees on appeals of commercial or industrial properties assessed over $1,000,000.

The fees include a $50 appeal filing fee for Maryland Property Tax Assessment Appeal Boards (PTAABs) decisions and a $100 filing fee for property tax assessment valuation appeals before the Maryland Tax Court.

This “pay to play” idea has never been required before and isn’t required in many other jurisdictions. If the appeal results in a successful assessment reduction, the owner will be refunded their paid fee.

HB0896 was approved by the Maryland House of Delegates. Now, it is before the Maryland Senate Committee on Budget and Taxation and may reach the full House Floor soon.

“If HB0866 is passed by the Maryland General Assembly and signed by Governor Moore, owners of multiple properties in economic entities may seek to consolidate lots,” said Darrin Sharp, Director at Clearview Group.

In some instances, a property is broken down into multiple tax parcels (building, plus adjacent land, plus parking lot, etc.). When filing an appeal for these properties, owners could be required to pay a separate fee for each tax parcel.If this legislation is approved and signed, it will be effective October 1, 2023.

UPDATE: The legislation to charge for filing an appeal in the SDAT (MD) state system failed to pass. This means that property owners can still file all appeals at all levels, with no charge by the SDAT.

If your business needs assistance in lot consolidation or understanding the effect of HB0896, get started here.