§ 9-104. Homeowner tax credits
West's Annotated Code of MarylandTax-PropertyEffective: June 1, 2023
Effective: June 1, 2023
MD Code, Tax - Property, § 9-104
§ 9-104. Homeowner tax credits
(ii) “Homeowner” includes a beneficiary of a trust described in 42 U.S.C. § 1396p(d)(4), or a trust established for the benefit of an individual with a disability by an individual other than the beneficiary and that is funded with assets that were never owned or controlled by the beneficiary, if, on July 1 of the taxable year for which the tax credit is to be allowed, the beneficiary of the trust is an individual who actually resides in the dwelling.
(viii) under a continuing care contract for an independent living unit at a continuing care facility for the aged, which means a nontransferable agreement between a continuing care facility for the aged as defined in § 7-206 of this article and an occupant of an independent living unit, which agreement provides that the occupant may reside in the unit until termination under the terms of the contract; or
(3) For any fiscal year, if State appropriations for reimbursement of tax credits under this section do not provide sufficient funds to fully reimburse the counties for tax credits granted under this section, the Governor shall include in the budget bill for the next fiscal year a deficiency appropriation to provide the additional funds to fully reimburse the counties.
(d)(1) Except as provided in subsection (e) of this section, the Department is responsible for the administrative duties that relate to the application and determination of eligibility for a property tax credit under this section.
(e)(1) On or before May 1 of each year, the Department shall provide the Comptroller information identifying owners of residential properties with an assessed value not exceeding $300,000 who, during the preceding 3 years, failed to claim the property tax credit under this section.
(f) A homeowner who meets the requirements of this section shall be granted the property tax credit under this section against the property tax imposed on the real property of the dwelling.
(g)(1) Except as provided in subsection (h) of this section, the property tax credit under this section is the total real property tax of a dwelling, less the percentage of the combined income of the homeowner that is described in paragraph (2) of this subsection.
(h) For home purchasers, the property tax credit is the amount of the credit as calculated under subsection (g) of this section multiplied by a fraction, where:
(i) If a surviving spouse of a homeowner has not remarried and meets the qualifications except for age or disability, the property tax credit under this section is available to the unmarried surviving spouse.
(j)(1) A property tax credit under this section may not be granted to a homeowner whose combined net worth exceeds $200,000 as of December 31 of the calendar year that precedes the year in which the homeowner applies for the property tax credit or whose combined gross income exceeds $60,000 in that same calendar year.
(4) Except as provided in subsection (u) of this section, if a property tax credit is issued under this section, the credit or a voucher for a credit may be used only in the taxable year in which it was issued or the next succeeding taxable year. However, a homeowner whose dwelling is sold for taxes may receive the credit until the final decree under § 14-844 of this article is entered.
(k) A homeowner may qualify for a property tax credit under this section if the homeowner does not actually reside in the dwelling for the required time period because of illness or need of special care even if the homeowner:
(l)(1) On or before the February 15 that precedes the taxable year in which the property tax credit under this section is sought, the Department shall make available that year's property tax credit application form.
(2) Except as provided in subsections (m), (u), and (v) of this section, on or before October 1 of the taxable year in which the property tax credit under this section is sought, a homeowner may apply to the Department for a property tax credit under this section. The application shall be made on the form that the Department provides.
(m)(1) A home purchaser may apply to the Department for a property tax credit under this section after the execution of a contract of sale on the dwelling or settlement on the dwelling by filing an application on the form that the Department provides.
(n) The Department shall notify an applicant in writing if the applicant is not eligible for the property tax credit under this section.
(o)(1) For any eligible application received before the April 15 that precedes the taxable year in which the property tax credit under this section is sought, the Department shall request the appropriate county collector to prepare a tax bill that reflects the final tax liability.
(p) If a municipal corporation or a special taxing district issues a tax bill to a homeowner, the Department shall include the property tax rate of the municipal corporation or the special taxing district in calculating the property tax credit under this section and final tax liability.
(q)(1) Except for transfers between spouses, including a conveyance to a surviving spouse from the personal representative of a deceased spouse, if a homeowner transfers a dwelling that is subject to a property tax credit under this section, the property tax credit ends on the date that the property is transferred. The credit is not ended if the transfer is between spouses.
(3) The homeowner is credited for the part of the property tax credit under this section that the homeowner's period of ownership during the taxable year in which the transfer occurs bears to the entire taxable year. The buyer shall pay the remaining part of the property tax credit under this section to the county.
(r) The final tax liability of a home purchaser due at settlement shall be adjusted to reflect any credit certified by the Department.
(s)(1) Each month or more frequently, if appropriate, each county collector shall submit a request to the Department for reimbursement for an amount equal to the property tax credits under this section and redeemed property tax credit vouchers paid under this section.
(t)(1) An eligible homeowner who has a continuing care contract for an independent living unit at a continuing care facility for the aged shall receive payment for the amount of the property tax credit under this section from the Comptroller upon certification by the Department. A credit granted to the homeowner under this subsection may not be assigned to the continuing care facility.
(2)(i) Notwithstanding the provisions of subsection (g) of this section, if a homeowner under this subsection is a disabled veteran, the homeowner may receive a credit for the total real property tax attributable to the independent living unit, up to the maximum credit authorized under this section.
(u)(1) Under the conditions set forth in this subsection, the Department may accept an application from a homeowner within:
(v)(1) In this subsection, “qualified homeowner” means a homeowner whose gross income includes income only from the following sources:
Credits
Added by Acts 1985, c. 8, § 2, eff. Feb. 1, 1986. Amended by Acts 1985, c. 297, § 2; Acts 1985, c. 331; Acts 1986, c. 171; Acts 1986, c. 522; Acts 1986, c. 705; Acts 1986, c. 716; Acts 1987, c. 154; Acts 1987, c. 678; Acts 1988, c. 6, § 1; Acts 1988, c. 110, § 1; Acts 1988, c. 264; Acts 1988, c. 677; Acts 1989, c. 5, § 1; Acts 1989, c. 8, § 5; Acts 1989, c. 9, § 5; Acts 1990, c. 302; Acts 1991, c. 21, § 3; Acts 1994, c. 177, § 1, eff. June 1, 1994; Acts 1998, c. 6, § 1, eff. July 1, 1998; Acts 2000, c. 80, § 1, eff. Oct. 1, 2000; Acts 2000, c. 393, § 1, eff. July 1, 2000; Acts 2000, c. 394, §§ 1, 2, eff. June 1, 2000; Acts 2002, c. 445, § 1, eff. July 1, 2002; Acts 2002, c. 446, § 1, eff. July 1, 2002; Acts 2005, c. 588, § 1, eff. June 1, 2005; Acts 2006, c. 27, § 1, eff. June 1, 2006; Acts 2006, c. 470, § 1, eff. June 1, 2006; Acts 2016, c. 8, § 5; Acts 2016, c. 667, §§ 1 to 3, eff. Oct. 1, 2016; Acts 2016, c. 668, §§ 1 to 3, eff. Oct. 1, 2016; Acts 2017, c. 62, § 1, eff. April 11, 2017; Acts 2020, c. 507, § 1, eff. June 1, 2020; Acts 2021, c. 333, § 1, eff. June 1, 2021; Acts 2021, c. 717, § 1, eff. June 1, 2021; Acts 2021, c. 718, § 1, eff. June 1, 2021; Acts 2022, c. 112, § 1, eff. Oct. 1, 2022; Acts 2022, c. 131, § 1, eff. June 1, 2022; Acts 2022, c. 132, § 1, eff. June 1, 2022; Acts 2023, c. 528, § 1, eff. June 1, 2023; Acts 2023, c. 529, § 1, eff. June 1, 2023.
Footnotes
Aug. 14, 1935, ch. 531, 49 Stat. 620, codified at 42 U.S.C.A. § 301 et seq.
Pub.L. 93-445, Title I, Oct. 16, 1974, 88 Stat. 1305, codified at 45 U.S.C.A. § 231 et seq.
MD Code, Tax - Property, § 9-104, MD TAX PROPERTY § 9-104
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.
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