SDAT tells Ways and Means Committee HB54 procurement could run to FY2026; agency outlines outreach and credit-processing changes

The Maryland Department of Assessments and Taxation told the Ways and Means Committee on Jan. 14 that the procurement to implement House Bill 54 — a state-authorized payment-plan program for property taxes — could extend into fiscal year 2026 and will require a federal- and state-security review, a 45-day public RFP period and possible Board of Public Works approval if the contract exceeds $200,000.

The briefing, led by Dan Phillips, director of the Department of Assessments and Taxation, covered three bills the department must implement (HB54, HB236 and HB16), recent changes in assessment notices and customer service, and operational steps SDAT has taken to clear application backlogs for homestead credits.

House Bill 54, procurement timeline and implementation

Bob Yeager, newly appointed deputy director of SDAT, described HB54 as a vendor-operated program that would “allow property owners to enter into a payment plan to pay their property taxes,” with the vendor paid through fees charged to enrollees. He told the committee that SDAT and the Department of Information Technology (DoIT) have concluded no existing state system meets HB54 requirements and that SDAT must issue an RFP. Yeager said DoIT’s drafters are finalizing technical language; the RFP must be posted for 45 days, may generate many vendor questions and could be revised and reissued before award. He recommended a conservative timeline that could put full award and vendor onboarding in fiscal year 2026.

Yeager also told members that the Board of Public Works may need to approve the award if the procurement amount exceeds $200,000 and that the vendor’s proposed operational scope will determine how much SDAT itself must staff versus what the vendor will handle.

Ombudsman outreach under HB236 and homeowner-protection efforts

Marie Smith, identified in the briefing as the state tax-sale ombudsman, said House Bill 236 (2023) requires SDAT to locate and contact homeowners at risk of tax sale and to use outreach methods beyond mail. Smith said SDAT has hired two outreach staff, has met with partners on protocols for information sharing, and has begun outreach using the 2024 tax-sale list with plans to complete outreach before the 2025 tax-sale season.

Sherry Williams, homeowner-protection program manager, explained the existing homeowner-protection program and said it is operational now; HB54 would create a separate, broader payment-plan option available to owner-occupied property owners whether or not they qualify for income-based credits.

Donation portal under HB16

Williams also discussed House Bill 16, which requires an online donation portal for citizens to contribute to the homeowner-protection program. SDAT said an add-on to existing software may take up to six months to implement; the agency has met with vendors and expects to identify a suitable vendor within weeks, but said integrating the functionality securely will take additional time.

Assessment notices, homestead backlog and tax-credit processing times

Director Dan Phillips told the committee SDAT worked with its vendor to simplify and verify the printing of assessment notices; the department printed and mailed notices on Dec. 30 as required by law. Phillips said the agency is making incremental internal changes rather than large system overhauls, and that it has adjusted phone systems to reduce dropped calls.

On homestead property-tax credits, Phillips said the department has eliminated the backlog and is processing applications as they arrive. He described one common delay for homestead-credit applicants as the need for property owners to update their driver’s license to reflect primary residency, which can delay processing and is controlled by the applicant.

For the income-based homeowner tax credit, SDAT described a labor-intensive process because many applicants still submit paper forms that must be keyed and audited. The department told the committee that, for a complete and responsive paper application, the internal processing target is about 45 days from receipt to determination. For renter tax credit payments, the department said the practical timeline from approval to a mailed check is roughly 90 days.

Timing of credits on tax bills depends on county tax-rate schedules. SDAT told lawmakers that counties legally must set rates before July 1; if a property owner applies by April 15, their homeowner credit (if approved) will be calculated and reflected on that year’s tax bill. Applications filed after April 15 generally produce a direct reimbursement to the owner rather than a credit on the first billing.

Language access and outreach limits

Several delegates asked about language access. Phillips said SDAT has discussed translating forms and using telephone-translation contracts but has not yet completed translation of applications. He said the department’s goal is to make applications available in other languages and that program staff have expanded call-center capacity to assist non-online applicants.

Assessment methodology, agriculture definitions and appeals recording

On valuation methods, Phillips explained SDAT relies on recent sales comparables for residential assessments and uses income and cost approaches for commercial and special-use properties when appropriate. He said COMAR-based rules for agricultural assessment focus on production uses; optional statutory definitions available to counties have produced variation across jurisdictions, and SDAT has participated in interagency work groups and reporting to the legislature on the issue.

Phillips also said SDAT revised its procedures to ensure property owners may record first-line appeal hearings and that county offices were notified of the revised guidance.

Committee questions and follow-up

Delegates from both parties pressed SDAT on processing times, county coordination, recruitment and training to reduce delays, and steps to make notices clearer for residents. Phillips said the department has reduced vacancies, has implemented training and audiovisual tools for staff and plans additional notice-format changes next year (for example, replacing the term “improvements” with clearer wording). He encouraged committee members to send constituent cases for follow-up.

What happens next

SDAT told the committee it will continue the HB54 procurement in collaboration with DoIT and the Office of State Procurement, expects further vendor engagement following the public RFP, and aims for a conservative implementation timeline through fiscal 2026. The ombudsman office will continue outreach required by HB236 ahead of the 2025 tax-sale season, and the department will pursue language-access translations and notice-format revisions.

The briefing concluded with SDAT staff offering follow-up meetings and an invitation for delegates to provide constituent names when delays occur so the agency can investigate and resolve case-specific problems.