§ 9-105. Homestead tax credit
West's Annotated Code of MarylandTax-PropertyEffective: June 1, 2022
Effective: June 1, 2022
MD Code, Tax - Property, § 9-105
§ 9-105. Homestead tax credit
(iii) a member of a limited liability company or partner in a limited liability partnership who has or shares the authority to manage, control, and operate the limited liability company or limited liability partnership and who shares the assets and earnings of the limited liability company or limited liability partnership under an operating agreement under § 4A-402 of the Corporations and Associations Article or under a partnership agreement.
(9) “Taxable assessment” means the assessment on which the property tax rate was imposed in the preceding taxable year, adjusted by the phased-in assessment increase resulting from a revaluation under § 8-104(c)(1)(iii) of this article, less the amount of any assessment on which a property tax credit under this section is authorized.
(b)(1) If there is an increase in property assessment as calculated under this section, the State and the governing body of each county and of each municipal corporation shall grant a property tax credit under this section against the State, county, and municipal corporation property tax imposed on real property by the State, county, or municipal corporation.
(c)(1) If a dwelling is not used primarily for residential purposes, the Department shall apportion the total property assessment between the part of the dwelling that is used for residential purposes and the part of the dwelling that is not used for residential purposes.
(3) If a homeowner otherwise eligible for a credit under this section does not actually reside in a dwelling for the required time period because the dwelling is damaged due to an accident or natural disaster, the homeowner may continue to qualify for a credit under this section for the current taxable year and 2 succeeding taxable years even if the dwelling has been removed from the assessment roll in accordance with § 10-304 of this article.
B. if the agricultural ownership entity is a limited liability company and the dwelling was originally transferred to the agricultural ownership entity as part of a conversion from a partnership under § 4A-211 of the Corporations and Associations Article, then at the time of its transfer to the former partnership; and
2. the agricultural ownership entity and the active member who occupies the dwelling must file an application with the Department establishing initial eligibility for the credit on or before June 30 for the following taxable year and, at the request of the Department, must file an application in any future year to verify continued eligibility.
(ii) If a homeowner otherwise eligible for a credit under this section does not actually reside in a dwelling on the subject property for the required period of time under subsection (a)(5) or (d)(2) of this section because the dwelling was razed by the homeowner for the purpose of replacing it with a new dwelling or was vacated by the homeowner for the purpose of making substantial improvements to the property, the homeowner may continue to qualify for a credit under this section for the tax year in which the razing or the substantial improvements were commenced and 1 succeeding tax year even if the dwelling has been removed from the assessment roll.
(iii) If a homeowner qualifies for a credit under this paragraph, the full benefit of the credit existing at the commencement of the tax year in which the razing or vacating of the dwelling occurred may not be diminished during that tax year except that neither the calculation of the abatement nor the assessment under this paragraph shall include an assessment less than zero.
(iv) If a homeowner qualifies for a credit under this paragraph, the calculation of the credit associated with the initial taxable assessment of the substantially completed new improvements, which is effective on or before the second July 1 after the razing or vacating of the dwelling, shall include the revaluation under § 8-104(c)(1)(iii) of this article.
(iii) The credit allowed under this paragraph shall be calculated based on the prior year's taxable assessment of the dwelling determined as if the credit had not been lost for the intervening taxable years when the homeowner was an employee of the United States government stationed outside the State.
(d)(1) Subject to the provisions of paragraph (6) of this subsection, the Department shall authorize and the State, a county, or a municipal corporation shall grant a property tax credit under this section for a taxable year unless during the previous taxable year:
(5)(i) If the dwelling was transferred for consideration in a deed dated on or after January 1 but before the beginning of the next taxable year and the deed was recorded with the clerk of the circuit court or the Department on or after July 1 but before September 1 of the next taxable year, the new owner may submit a written application to the Department on or before September 1 of the second taxable year following the date of the deed requesting that the date of the deed be accepted by the Department as the date of transfer under paragraph (1) of this subsection.
(iv) If a homeowner submits an eligible application under this paragraph after May 1 of the first taxable year following the date of the deed and the homeowner is due to receive a reduction in the homeowner's property tax bill in the second taxable year following the date of the deed as a result of the credit under this section, property tax is not due on the dwelling for the second taxable year following the date of the deed until 30 days after a revised tax bill is sent to the homeowner.
(iii) For a dwelling that was last transferred for consideration to new ownership on or before December 31, 2007, an application shall be filed with the Department on or before December 30, 2013, or the Department may not authorize and the State, county, and municipal corporation may not grant the property tax credit under this section:
(e)(1) For each taxable year, the property tax credit under this section is calculated by:
(f)(1) The Department shall give notice of the possible property tax credit under this section.
(g) A homeowner who meets the requirements of this section shall be granted the property tax credit under this section against the State, county, and municipal corporation property tax and any property tax imposed for a bicounty commission imposed on the real property of the dwelling.
(h) The tax credit under this section shall be included on the homeowner's property tax bill.
(i)(1) When property that has received a credit under this section for the current taxable year includes improvements that are removed from the assessment roll under § 10-304 of this article because of damage due to an accident or a natural disaster:
(k) The tax credit under this section shall be known as the homestead property tax credit.
(l) The Comptroller shall:
(m)(1) The counties shall reimburse the Department for the administration of the application process under subsection (d)(6) of this section.
(2) For each fiscal year, the reimbursement required under this subsection shall be prorated based on the ratio of the number of improved properties that would be eligible for the credit under this section located in the county compared to the total number of improved residential properties eligible for the credit under this section statewide as of July 1 of that fiscal year.
(n)(1) A person who has been granted a property tax credit under this section and is subsequently found to not qualify for the credit by the Department shall be assessed all State, county, and municipal corporation property tax otherwise due for each taxable year the person did not qualify to receive the credit.
(2)(i) If a person is found by the Department to have willfully misrepresented facts regarding qualification for the property tax credit under this section, the person shall be assessed a penalty equal to 25% of the amount of the property tax credit received during each taxable year for which the person did not qualify.
Credits
Added by Acts 1985, c. 8, § 2, eff. Feb. 1, 1986. Amended by Acts 1985, c. 609; Acts 1986, c. 171; Acts 1986, c. 854; Acts 1988, c. 776, §§ 1, 3; Acts 1989, c. 5, § 1; Acts 1990, c. 1; Acts 1990, c. 2; Acts 1990, c. 12, § 2; Acts 1990, c. 226; Acts 1990, c. 227; Acts 1991, c. 246; Acts 1991, c. 348; Acts 1993, c. 221; Acts 2004, c. 43, § 1, eff. April 13, 2004; Acts 2004, c. 501, § 1, eff. June 1, 2004; Acts 2005, c. 25, § 1, eff. April 12, 2005; Acts 2005, c. 345, § 1, eff. June 1, 2005; Acts 2005, c. 555, § 1, eff. July 1, 2005; Acts 2006, c. 160, § 1, eff. July 1, 2006; Acts 2006, c. 169, § 1, eff. June 1, 2006; Acts 2007, c. 208, § 1, eff. June 1, 2007; Acts 2007, c. 209, § 1, eff. June 1, 2007; Acts 2007, c. 564, § 1, eff. Oct. 1, 2007; Acts 2007, c. 565, § 1, eff. Oct. 1, 2007; Acts 2009, c. 362, § 1, eff. June 1, 2009; Acts 2010, c. 72, § 1, eff. April 13, 2010; Acts 2010, c. 336, § 1, eff. June 1, 2010; Acts 2010, c. 571, § 1, eff. June 1, 2010; Acts 2010, c. 572, § 1, eff. June 1, 2010; Acts 2012, c. 701, § 1, eff. June 1, 2012; Acts 2013, c. 25, § 1, eff. April 9, 2013; Acts 2013, c. 26, § 1, eff. April 9, 2013; Acts 2014, c. 526, § 1, eff. June 1, 2014; Acts 2014, c. 527, § 1, eff. June 1, 2014; Acts 2017, c. 239, § 1, eff. June 1, 2017; Acts 2018, c. 12, § 6; Acts 2018, c. 297, § 1, eff. Oct. 1, 2018; Acts 2018, c. 781, § 1, eff. July 1, 2018; Acts 2020, c. 420, § 1, eff. June 1, 2020; Acts 2020, c. 628, § 1, eff. May 8, 2020; Acts 2021, c. 333, § 1, eff. June 1, 2021; Acts 2022, c. 129, § 1, eff. June 1, 2022; Acts 2022, c. 130, § 1, eff. June 1, 2022.
Formerly Art. 81, § 12F-7.
MD Code, Tax - Property, § 9-105, MD TAX PROPERTY § 9-105
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document |