On March 15, 2025, Maryland lawmakers introduced House Bill 691, a legislative proposal aimed at providing financial relief to certain homeowners through a property tax payment deferral program. The bill seeks to empower municipal corporations to authorize deferrals for residential real property taxes for owners who meet specific eligibility criteria.

The primary provisions of House Bill 691 allow for a payment deferral of municipal property taxes for homeowners who have occupied their residence as their principal home for at least five consecutive years. Additionally, the bill extends eligibility to those who are permanently and totally disabled and have qualified for benefits under federal acts, including those for service members of the United States armed forces. Furthermore, the bill includes income eligibility requirements that must be met to qualify for the deferral.

The bill's introduction has sparked discussions among lawmakers regarding its potential impact on local government revenues and the financial burden on municipalities. Proponents argue that the measure will provide much-needed assistance to long-term residents facing financial hardships, particularly the disabled and low-income homeowners. However, some critics express concerns about the implications for municipal budgets, fearing that deferring tax payments could lead to reduced funding for essential services.

House Bill 691 is set to take effect on July 1, 2025, with provisions applicable to taxable years beginning after December 31, 2024, and June 30, 2025, respectively. As the bill progresses through the legislative process, stakeholders are closely monitoring its developments, anticipating debates that may shape its final form and implementation.

In summary, House Bill 691 represents a significant effort by Maryland lawmakers to address housing affordability and support vulnerable homeowners, while also raising important questions about the balance between fiscal responsibility and social support within local governments. The outcome of this bill could have lasting implications for both residents and municipalities across the state.