Property Tax Credit for Elderly Individuals and for Military Retirees

(Bill 42-16, Bill 13-17 and Bill 21-19 )


 

Updated 6/16/20:

The due date for the Elderly Individual and Military Retiree tax credits has been extended until the end of the state of emergency. Please note that all applications received by April 1, 2020, will be on the July 2020, property tax bill. Most applications received after April 1, 2020, will receive a revised property tax bill after the property tax bills are sent in July, but the tax credits will still be for the taxes that are due in 2020.

 

Update: July 30, 2019  :

The County Council recently passed Bill 21-19, which extends the retired military services tax credit to include the surviving spouse.  This bill provides the tax credit to a surviving spouse of a retired member of the uniformed services as long as the surviving spouse is at least 65 years of age and the surviving spouse has not remarried.  The surviving spouse that meets the eligibility criteria must submit an application on or before October 1, 2019 if the individual seeks to receive the tax credit for Fiscal Year 2020.  

Update: July 16, 2018 :

The County Council recently passed Bill 17-18, which removed the requirement for applications for the second through the fifth year of the tax credit program. People must still apply for the credit (by April 1 st) to get the credit for the first time. For example, to get the credit beginning July 2020, one must apply for the credit between July 1, 2019 and April 1, 2020.

 

Bill 17-18 also added a provision that allows Surviving Spouses of Military Retirees to receive the tax credit, if their Military Retiree would have been eligible at the time of his or her death, and if the Surviving Spouse never remarried after being married to the Military Retiree. This means that the Military Retiree, at the time of his or her death, would have to have been at least 65 years old, and would have to be retired from the Army, Navy, Air Force, Marines, Coast Guard, the National Guard, the Military Reserves, the uniformed corps of the Public Health Service or the uniformed corps of the National Oceanic and Atmospheric Administration.

 

Being a veteran of one of the armed services or a veteran of one of the previously mentioned uniformed services is not sufficient—the Military Retiree had to have been retired from one of these services. 

 

Please click here for a copy of the application for the Surviving Spouse credit—  Applications are due April 1st of every year. An application only needs to be submitted once, then after the credit is received no additional applications are required to receive the credit for the additional 4 years. 

 

To receive a Surviving Spouse tax credit you must provide (1) a copy of the death certificate for the deceased Military Retiree; (2) an affidavit signed by the Surviving Spouse declaring that the Surviving Spouse did not remarry after being married to the Military Retiree; and (3) proof that the Military Retiree was retired from one of the services mentioned above (and not only a veteran of one of those services). Without this documentation your application will be rejected.

 

If you have any questions, please call 311 or 240-777-0311 (if you are calling from outside of Montgomery County).

 


Note: Incomplete Applications will not be processed.
Please make sure that you provide the required attachments with your Application .

 

Please use this Application For Elderly Individual and Military Retiree Property Tax Credits (Bill 42-16)  if you are applying for the credit for the first time.

 

To receive this tax credit beginning July 1, 2020, your birthday must be on or before  June 30, 1955. For those who are applying as 40+ year owners, your deed must be dated  June 30, 1980 or earlier. The application is due April 1, 2020.

On March 7, 2017 the Montgomery County Council passed Bill 42-16, which provides a tax credit for people who are over 65 years of age and who either:

  • Have owned and lived in the dwelling that they own for at least 40 consecutive years, or
  • are retired from one of the United States’ armed forces (Air Force, Army, Coast Guard, Marine Corps, Navy), or are retired from the uniformed services of the National Oceanic and Atmospheric Administration or the Public Health Service, or are retired from the military reserves or the National Guard. To meet the Military Retiree requirement, one must be retired from one of these services. Being a veteran of a service but not actually having Retired status from that service does not meet the requirements for this tax credit.

The owner who is 65 or over and who has owned and lived in the dwelling for at least 40 consecutive years must be on the deed for the property.  An owner who is 65 or over and is a military retiree must be on the deed for the property. Not all owners must be over 65, just the one that meets the requirements above. Not all owners must have owned and lived in the dwelling for at least 40 consecutive years, just the one that meets the requirements above. Not all owners must be retired from the U. S. armed forces, just the one that meets the requirements above.

This bill will provide a 20% credit, on County property taxes only, only for owner-occupied dwellings for which at least one of the owners meets the eligibility requirements noted above. The credit is granted for 5 consecutive years, and the credit is not available after that 5 year period. There is only one credit—if an owner is 65 or over and has owned and lived in the same dwelling for at least 40 consecutive years, AND that owner is also a military retiree, the tax credit is still a 20% tax credit on County property taxes only, for 5 consecutive years.

Please note that the term “dwelling” means the entire property, not just the home on the land—it includes the land. The assessment on a dwelling is therefore the assessment that is shown on your tax bill, as this includes both the home and the land.

For owners that are at least 65 years of age and have owned and lived in the same dwelling for at least 40 consecutive years, the tax credit is only available if the dwelling has an assessment of $650,000 or less, at the time of the application for the credit. If the dwelling is assessed at more than $650,000, then the property is not an eligible property, and no credit will be granted.

For owners that are at least 65 years of age and are military retirees the tax credit is only available if the dwelling has an assessment of $500,000 or less, at the time of the application for the credit. If the dwelling is assessed at more than $500,000, then the property is not an eligible property, and no credit will be granted.

Please note that for all properties that are titled in the name of a trust or in the name of the trustees of a trust you MUST fill out and sign the Affidavit Re Trust Ownership to receive this tax credit. The affidavit can be opened here , or you can get a paper copy from our office.

New applications are due on April 1, before the tax year that begins on July 1 of the same calendar year. Tax years begin on July 1 st—the 2020 tax year begins on July 1, 2020.  The application deadline for 2020 tax credits is April 1, 2020.


The tax credit will appear as a line item deduction on the bill. You can review your bill on our website at https://www2.montgomerycountymd.gov/realpropertytax/default.aspx . At this site you can look up your tax bill by address, by your account number, or by your bill number.

The revised bill amount will also be available by calling MC311 (dial 311 if you are in the County, and dial 240-777-0311 if you are calling from outside of Montgomery County).


Please mail your application to:
Department of Finance, Division of Treasury
     Attn: Bill 42-16 Tax Credit
255 Rockville Pike, Suite L-15
Rockville, Maryland 20850

July 2018