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Montgomery County Senior Property Tax Deferral Program

This new program was enacted by Expedited Bill 10-16, and is effective beginning July 1, 2016

This program begins on July 1, 2016, and applications will be available in printed form at the Division of Treasury (255 Rockville Pike, Suite L-15, Rockville, MD 20850). To open an electronic version of the Application, click here . For instructions on how to fill out the Application, click here . Click here to open a copy of the Tax Deferral and Lien Agreement, which must accompany each application. Click here for instructions to complete the Tax Deferral and Lien Agreement.

  •  The amount that a taxpayer who meets all of the requirements of the law will be allowed to defer is the amount by which their 2016 County Tax exceeds their 2015 County Tax
  • There is no deferral for State taxes; there is no deferral for municipal taxes, fees and charges; there is no deferral for County charges for Water Quality Protection, Solid Waste Fees, or any other charges.
  • Only the County Property Tax may be deferred—on your tax bill it is the line labeled COUNTY PROPERTY TAX .
  • At least one of the Applicants must be at least 65 years old. 
  • The property must be the applicants’ principal residence. 
  • At least one of the Applicants must have resided in the dwelling as their principal residence for five consecutive years, and must continue to occupy the property as their principal residence.
  • The combined income of those who live in the house must not have exceeded $80,000 in the previous calendar year. 
  • The tax deferred will not be charged interest during the period of deferral. The deferral period ends when any one of the following occurs:
    1. the property is transferred to another person;  OR
    2. the applicant no longer occupies the property as their principal residence;  OR
    3. the property becomes subject to tax sale;  OR
    4. the use of the property changes. 
  • The amount of accumulated deferred taxes cannot exceed 50% of the fair market value of the property. 
  • The deferred taxes are a lien on the property, and the County will file a lien in the land records of the County at the expense of the property owner. 
  • The deferred taxes are a personal liability of the applicant, and the applicant must sign a Tax Deferral and Lien Agreement that details this liability, on a form the County will provide. 
  • The County will notify all mortgage companies or beneficiaries under any deed of trust of a payment deferral, including the amount of tax to be deferred. 
  •  A property owner may apply for a deferral each year; an application for deferral is only for the current tax year. All applications are due to Treasury by September 1 st of each year.
 

 

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