Maryland Reviews Tax-Exempt Property in Southern Counties
A state analysis finds tax-exempt property makes up a significant share of the tax base in Calvert, Charles and St. Mary's counties.
Updated on Nov. 4, 2026 in Commercial
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The Department of Legislative Services presented an analysis of tax-exempt real property to the Task Force to Modernize County and Municipal Revenue Structures. The review shows exempt property equals 11.5% of the statewide real property base, with higher shares in several southern Maryland counties.
Why it matters
Exempt property reduces local property tax collections and lowers the local wealth measure used in state aid formulas. Because more than 70% of state aid to local governments uses that measure, the findings could affect how funding is distributed across Maryland counties.
The analysis measures assessed value of exempt property for fiscal 2026, not forgone tax revenue. Calvert, Charles and St. Mary's counties hold exempt shares of 11.6%, 14.2% and 16.7% of their real property bases, respectively, against a statewide average of 11.5%.
The players
Wes Moore
Wes Moore is the Governor of Maryland who signed House Bill 1142 ordering the review of tax-exempt property.
Department of Legislative Services
The Department of Legislative Services is the nonpartisan staff agency of the Maryland General Assembly that prepared the exempt property analysis.
The details
Exemptions cover government property and categories such as educational, religious and charitable ownership, and organizations must meet both ownership and use requirements. Exemption applications are submitted to the assessment office in the county where the property is located.
Timeline
Apr. 14: Gov. Wes Moore signed House Bill 1142, ordering the review.
Oct. 30: The Department of Legislative Services presented the analysis to the task force.
Dec. 1: The task force must submit findings and recommendations to the governor and legislative committees.
Roadmap
House Bill 1142 set up the task force that now reviews how Maryland's counties and municipalities raise revenue from property. The exempt property analysis is one of the first findings the group has taken up under that mandate.
Property owners in Calvert, Charles and St. Mary's counties could see changes in local tax burdens if the task force recommends revising exemption rules. Local governments may also face revised state aid levels tied to the wealth measure.
The takeaway
Property classification affects both local budgets and state aid, so changes to exemption rules can ripple beyond the property owners directly affected. Residents interested in the outcome should watch the task force's December report.
What happens next
The task force must submit its findings and recommendations to the governor and legislative committees by December 1.
Further reading
Explore more Commercial real estate coverage for context on how property classification shapes local development.
Source note: This article includes information reported by The Bay Net.
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