HAGERSTOWN – City officials are considering imposing higher property tax rates on long-term vacant buildings, a move aimed at addressing blight and encouraging redevelopment.
During the Mayor and Council work session, staff members presented data showing 296 vacant properties citywide, including 243 residential structures and 53 non-residential buildings, among them 18 vacant storefronts downtown. That figure represents less than 2 percent of Hagerstown’s housing and business stock, down from more than 500 vacant properties in 2017.
Learning from other cities
The discussion focused on models in Baltimore City and Frederick, where local governments have adopted escalating tax rates for properties that have been left empty for years. Council members signaled interest in targeting only long-term vacancies, typically three to five years or more, rather than homes or storefronts that may be empty for shorter periods due to estate settlements or business transitions.
Balancing incentives and penalties
Supporters of the proposal argue that higher taxes on vacant properties could create more substantial incentives for owners to repair, sell or redevelop buildings that would otherwise remain idle. Downtown storefronts, in particular, have drawn attention as city leaders look for ways to improve the business district’s appearance and vitality.
At the same time, council members emphasized the need for clear definitions and a fair process. Officials noted that some properties become vacant due to structural problems, market conditions or complex ownership disputes.
Next steps
City staff members will review Frederick’s vacancy tax framework, including how that city defines long-term vacancy and how its escalating tax rates are applied. A detailed comparison will be presented at a future Hagerstown work session.
If adopted, the measure would mark a new tool in Hagerstown’s effort to reduce blight, building on progress already made in cutting the number of vacant properties nearly in half over the past decade.
