Local governments may offer tax credits for converted service stations

Baltimore City, counties, and towns may authorize a property tax credit for converting a former service station. The property must change from a retail service station to another retail use, housing, or a mix of retail and housing. A discount store, self-storage site, or certain tobacco, vaping, or alcohol retailers do not count as a retail use. The local government must authorize the credit by law and may set its amount, duration, and additional eligibility rules. Underground tanks on the property, or formerly on it, must be permanently closed under state environmental rules. The law says the credit is intended mainly to help cover tank removal and cleanup costs. The law takes effect June 1, 2026, and applies to taxable years beginning after June 30, 2026.

The State may repay a local government half of the property tax revenue it would have collected without the credit. The payment may go to each county or municipal corporation that grants the credit. The State may make the payment; it is not guaranteed. This applies to credits for taxable years beginning after June 30, 2026.