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New Maryland Property Tax on Impervious Surfaces

In 2010 the Environmental Protection Agency decreed that Maryland had to reduce the amount of stormwater runoff entering the Chesapeake Bay.  Maryland decided to pay for this federal mandate by taxing the “impervious surfaces” of property owners starting on July 1, 2013.  The state is requiring the 10 largest jurisdictions to raise revenue by taxing each property owner (state owned properties are exempt, non-profits are not) based on the properties’ ground surface that does not absorb rainwater – roofs, parking lots, driveways, etc.  The new tax will be calculated using satellite imagery to measure the impervious surfaces on each property.  Each of the jurisdictions must decide how to impose the tax and the fee schedule.

The official name of this tax is the Stormwater Remediation Fee, otherwise known as the Stormwater Fee, or simply the “Rain Tax”. There will be an appeal process if the property is misclassified or there is an error in calculating the impervious surface.  In some cases there is a reduced fee for non-profits and the fee can be reduced if it can be demonstrated there is a reduction in storm runoff.  The KatzAbosch State and Local Tax (SALT) team will be happy to review your new tax assessment to make sure it complies with the state and local mandates and determine if you qualify for fee reductions.

Please contact the KatzAbosch SALT Group if you have any questions regarding this new tax or other SALT issues: 410-828-CPAs, or email

The SALT (State and Local Tax) Shaker is prepared by Andy Bareham, Chair of the KatzAbosch SALT Group

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