In Baltimore, some homeowners are learning the hard way that a small phrase on a city record can mean a very big property tax bill. Starting with the tax year that begins July 1, homes that carry a Vacant Building Notice will be taxed at a sharply higher rate, a change that has buyers of seemingly finished rehabs scrambling to sort out permits, repair surprise defects, and fight off eye‑popping bills.
How the vacancy tax works
The City Council approved an ordinance that sets a special tax rate for any structure the Department of Housing and Community Development (DHCD) classifies as vacant. Under the city legislation, qualifying properties are taxed at three times the normal rate in the first full tax year they are labeled vacant and four times the rate in any year after that. The ordinance sets the first applicable tax year as July 1, 2026, through June 30, 2027.
What homeowners are reporting
Some recent buyers say they thought they were purchasing fully rehabilitated homes, only to find out later that the city still considers those houses officially vacant. That discovery often arrives in the form of a Vacant Building Notice and a list of violations that must be fixed.
Homeowner Renay Mitchell told WBAL that she learned after closing that her property lacked a use-and-occupancy permit and could need more than $100,000 in repairs. “This was our dream home, and it has turned into a nightmare,” she said.
Why some rehabs still carry notices
According to city materials and DHCD outreach, that kind of scenario usually traces back to rehabs done without complete permits, or to sellers who list and sell properties before formally clearing a Vacant Building Notice. The department’s Vacant Building Notice fact sheet states that only a valid Use and Occupancy certificate will remove a VBN from a property.
The city’s disclosure law, outlined in Baltimore City Code §14-8, requires sellers to tell buyers if a property has a current or prior Vacant Building Notice. That is supposed to keep buyers from learning about the “vacant” label only after the tax bill or violation notice shows up.
How many properties could be affected
Officials and reporters have been warning that this is not a niche issue. Council members have cited roughly 13,000 vacant properties across Baltimore, and earlier reporting estimated that about 3,600 could qualify for In Rem action or for the special tax rate. CBS Baltimore has covered those figures, and the ordinance itself requires the city to report each year on how many parcels actually fall under the higher rate.
Relief and next steps for owners
The system is not entirely stuck with no carrot. Owner-occupants who fix up a cited vacant dwelling may qualify for the Vacant Dwelling Property Tax Credit, which can wipe out the vacancy-related increase in the first year and then step the benefit down over five years. Live Baltimore details how that credit works…