Council discusses municipal infraction fine changes and options to tax habitually vacant properties

City staff and council members discussed proposed amendments to municipal infraction fines and a separate policy review on taxing vacant properties during the Sept. 23 work session.

Municipal infractions and fines: Staff described a need to amend city code to reflect a recent state law change that allows municipalities to set preset fine amounts up to $5,000 (an increase from prior $1,000). Staff said legal counsel recommended preserving easy‑to‑read preset fine amounts for property maintenance code violations while allowing nuisance and vacant‑structure sections to use a maximum $5,000 figure and an internal policy to guide escalation for repeat offenses within a 24‑month period. Staff noted a discrepancy between printed citations that state a doubling to $5,000 and the state code language: the court cannot double a fine above the preset amount unless state law explicitly provides for that; the printed citation language going into effect Oct. 1 therefore may be inconsistent with the current state statute. Staff proposed bringing back formal code amendments after legal review; the council agreed to return the matter for introduction the following week (multiple chapter amendments will require separate introductions).

Vacant property taxation discussion: Paul Follett (city staff) briefed the council on options and comparative practice. Key facts presented on the record: - Registered vacant properties in Hagerstown: 296 total; 243 residential and 53 nonresidential. - Registration threshold: a property is considered registered vacant after six months of vacancy (with several local exemptions). - Exemptions include properties in their first year of vacancy if listed with a Maryland‑licensed real estate broker and properties with “active work” shown by multiple active permits. - Of the 53 nonresidential vacant properties, staff said 28 are in downtown Hagerstown. - Historical peak: staff noted Hagerstown had over 500 vacant properties in February 2017; the current count is lower.

Follett described how the City of Frederick’s ordinance treats “habitually vacant” properties: vacant three or more years qualifies; Frederick applies a graduated higher tax rate (e.g., two times the tax rate at year three, escalating further in later years). Follett said Frederick’s approach and others could be researched further and that the legal authority varies by jurisdiction; he recommended staff do more comparison and return with proposals. Council members expressed interest in a graduated approach and one member said a three‑to‑five‑year threshold “seems reasonable” to protect owners who are actively trying to sell or rehabilitate property.

Council did not adopt a new taxing ordinance at the meeting; staff will return with comparison data, legal analysis and draft language if the council wants to proceed.