Baltimore City tackles vacant homes crisis with push to increase property tax rates

BALTIMORE -- Baltimore's city council introduced a new bill that would create a special property tax rate increase on vacant homes to encourage owners to take better care of their property and, if necessary, allow the city to take control of these uninhabitable buildings.

The bill, which was unanimously sponsored by all council members on Monday, is another piece of the puzzle in the fight against Baltimore's vacant housing crisis.  

The bill increases taxes on vacant properties threefold, starting in the 2026-2027 tax year, and then four times the following year, if necessary.

"Anybody who's holding properties not doing anything with them, hopefully, this will change behavior and incentivize them to do something," Councilwoman Odette Ramos said.

Baltimore City currently owns fewer than 1,000 vacant properties. Ramos says there are 13,000 city-wide properties with a vacant designation, but there are thousands more falling apart and uninhabitable.

Only 3,600 properties currently qualify for this proposed tax rate hike, but Ramos hopes this bill will increase that number, revitalize full blocks, and take a community approach.

"Enough is enough"

Baltimore City Council President Nick Mosby called the tax rate increase bill a citywide issue that will revitalize communities from East to West Baltimore.

"This has become normalized in our communities in East and West Baltimore, and this is a time where the council, as well as the administration, is saying enough is enough," Mosby said.

City can take control

Ramos has been a staunch advocate of creating a vacant housing policy. She said the vacant homes in the neighborhood surrounding Gorsuch Avenue were a test case for the new bill that the council is considering.

Ramos says the bill will allow more properties to be in "rem," meaning the city can take control of it in foreclosure court.

"When the liens exceed the value of a property, vacant and abandoned property, the city can foreclose and take possession, so that we can take a whole block approach," Ramos said.

Following Washington, D.C.'s model

The city council has been pushing for this type of tax rate increase bill on vacant homes for years but had to wait for approval from the Maryland General Assembly. The state legislature must approve any tax rate change on specific properties. 

This model follows one in Washington, D.C., which has a set dollar amount that vacant homes are taxed.

Multi-layered approach

This bill is part of a multi-layered approach Baltimore City is implementing to tackle the vacant homes problem. Ramos says the city is in the process of securing billions of dollars to work with developers and the community to fix up these homes.

The Baltimore Circuit Court created a specific docket to expedite the legal process and forced foreclosure, but Ramos added that there will be plenty of notice to property owners if their building's taxes will increase and if there is a threat to be in "rem."

Ramos says the city will need to be intentional as it rebuilds to create sustainable communities.

"This problem is one of the most important we should be tackling because it will help us resolve so many other issues in our city," Ramos said. "It's been long-standing and I think we finally have the formula to get it done."

What's next?

Ramos estimates that it will take about 15 years for Baltimore City to get full control of this problem, but added that this bill is a step in the right direction.

While many properties are in disrepair without the vacant designation, Ramos encourages neighbors to call 311 to request a vacant home inspection to see if homes on their block qualify for this status. She says that by reporting them, neighbors can help make a difference to revitalize where they live.

The next step for this bill will be a hearing on Oct. 22. Ramos expects the bill to be passed quickly after that hearing.