Bill No.
22-14
Concerning:
Property
Tax -
Rent
Reduction Tax Credit
Revised:
1012112014
Draft No.
7
Introduced:
April 22. 2014
Enacted:
October 28, 2014
Execuwe: __
~
______________
Effective:
July 1, 2015
Sunset Date: June 30,2018
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council Vice President Leventhal and Councilmembers Berliner, EIrich. Floreen and Navarro
AN
ACT to:
(1)
(2)
create a property
tax
credit for a property owner providing reduced rent for certain
elderly or disabled tenants; and
generally amend the law relating to property
tax
credits.
By adding
Montgomery County Code
Chapter 52, Taxation
Section [[52-18T]] 52-18W
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Headmgor~finedrenn
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[Single boldface brackets)
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* * *
Addedto existing law
by
original bill.
Deletedfrom exisimg law by origmal bill.
Added
by
amendment.
Deletedfrom existing law or the bill by amendment.
Exisimg law unqIJected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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Bill No. 22-14
1
Sec. 1. Section [[52-18T)) 52-18W is added as follows:
[[52-18T]] 52-18W.
disabled tenants.
(ill
Definitions.
In
this Section:
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Property tax credit reduced rent for elderly or
=
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Director
means the Director of Finance or the Director's designee.
Elderly or disabled tenant
means
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tenant who meets the income- and
asset-based eligibility requirements established
subsection
ill
and:
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hY
regulation under
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ill
ill
is at least 65 years old;
has been found permanently and totally disabled and has
qualified for benefits under:
CA)
ill}
{Q
the Social Security Act;
the Railroad Retirement Act;
any federal act for members of the United States armed
forces; or
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ill}
any federal retirement system; or
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has been found permanently and totally disabled
hY
the County
health officer.
Market rent
means an amount, determined
Housing and Community Affairs, equal to:
hY
the Department of
ill
ill
the rent charged to other tenants for comparable units in the
same property; or
if there are no other comparable units in the same property, the
rent charged for comparable units in the same market area.
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Reduced rent
means rent charged to an elderly or disabled tenant that
is at least 15% less than market rent.
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Rent reduction
means the difference between the market rent and
reduced rent for the dwelling.
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BILL
No. 22-14
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Tax-Property Article
means the Tax-Property Article of the Maryland
Code.
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®
Credit.
As authorized
.by
§9-219 of the Tax-Property Article, the
owner of
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rental dwelling who provides reduced rent to an elderly or
disabled tenant may receive
~
credit against the County property tax.
Amount
gf
Credit.
ill
The credit allowed under this Section is 50% of the total rent
reductions provided
.by
the owner to elderly or disabled tenants
during the tax year.
ill
A credit granted to
~
person under this Section must not exceed
the amount of County property tax paid
.by
the person
in
the tax
year
in
which the credit is granted.
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@
Annual aggregate limit.
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Unless
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larger amount is approved
in
the annual operating
budget or
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Council resolution, during any fiscal year, the total
credits granted under this Section must not exceed $250.000.
ill
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Credits must be granted in the order in which the Department of
Finance receives complete applications under subsection
hl
A complete application that, if granted, would cause the limit
set
in
paragraph
ill
of this subsection to be exceeded. must be
granted
in
the next fiscal year or years based on the order
in
which the Department ofFinance received the application.
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W
Application.
ill
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A property owner must submit an application to the Director on
or before the date that the Director sets.
An
application must:
CA)
be on the form that the Director reguires; and
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BILL NO. 22-14
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.an
ill
Regulations.
demonstrate that the taxpayer is entitled to the credit.
The County Executive must adopt regulations under
administer this Section, including income- and asset­
method
ill
to
based tenant eligibility requirements.
[[(g}
Applicability.
The credit authorized
Qy
this Section applies to any tax
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year beginning after June 30, 2014.]]
Sec. 2.
Effective and Sunset Date.
This Act takes effect on July 1.
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[[2014]]2015 and is effective through the tax year ending on June 30.
[[2017]]2018. This Act and any regulation adopted under it is not effective for any
tax year beginning on or after July
1.
[[2018]]2019.
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Approved:
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Craig
L.
Rice,
Date
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Approved:
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Isiah Leggett, County Executive
Date
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This is a correct copy ofCouncil action.
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Linda M. Lauer, Clerk of the Council
Date
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