AGENDA ITEM #4
April 29, 2014
Public Hearing
MEMORANDUM
April 24, 2014
TO:
FROM:
SUBJECT:
County Council
~~
Josh Hamlin, Legislative Attomr- ,
Public Hearing:
Bill 17-14, Property Tax Credit - Senior Citizens of Limited
Income
Bill 17-14, Property Tax Credit Senior Citizens of Limited Income, sponsored by
Councilmembers Riemer, Andrews, Floreen, Branson, Navarro and Berliner, was introduced on
March 4, 2014. A Government Operations and Fiscal Policy Committee worksession will be
scheduled at a later date.
Bill 17-14 would double the amount of each year's property tax credit for senior citizens
of limited income from 25% to 50% of the State and County Homeowners' Property Tax Credit
awarded in that year. The fiscal and economic impact statements were received on March 18,
2014.
This packet contains:
Bill 17-14
Legislative Request Report
Fiscal and Economic Impact Statement
Circle #
1
3
4
F;\LA W\BILLS\1417 Property Tax Credit For Senior Citizens\Public Hearing Memo.Doc
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Bill No.
17-14
Conceming: Property Tax Credit ­
Senior Citizens of Limited Income
Revised:
01/16/2014
Draft No. _1_
Introduced:
March 4. 2014
Expires:
September 4, 2015
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: _--:-_--::--_ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmembers Riemer, Andrews, Floreen, Branson, Navarro and Berliner
AN
ACT to:
(1)
increase the amount of the property
tax
credit for senior citizens of limited income;
and
(2) generally amend the County law regarding property
tax
credits.
By amending
Montgomery County Code
Chapter 52, Taxation
Section 52-11C, Property tax credit - senior citizens of limited income
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
'"
'"
'"
Heading or defined term,
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL No. 17-14
1
2
3
4
Sec
1.
Section 52-IIC is amended as follows:
52-IIC. Property tax credit ­ senior citizens of limited income.
*
(b)
*
*
For each taxable year, the credit under this Section equals [25%] 50% of
the total state and County credit awarded for that tax year under state
law and Section 52-11A.
5
6
7
*
Sec 2. Effective Date.
*
*
8
9
10
The amendment to Section 52-11C in Section 1 ofthis Act takes effect on July
1, 2014 and applies to any tax year that begins on or after that date.
Approved:
11
12
Craig L. Rice, President, County Council
Date
13
Approved:
14
Isiah Leggett, County Executive
Date
15
This is a correct copy o/Council action.
16
Linda M. Lauer, Clerk of the Council
Date
(9
t\law\bills\1417 property
tax
credit for senior citizens\bill1.doc
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LEGISLATIVE REQUEST REPORT
Bill 17-14
Property Tax Credit Senior Citizens ofLimited Income
DESCRIPTION:
Bill 17-14
would double the amount of each year's property tax
credit for senior citizens of limited income from 25% to 50% of the
State and County Homeowners' Property Tax Credit awarded in that
year.
PROBLEM:
GOALS
AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITIDN
MUNICIPALITIES:
PENAL
TIES:
The County wishes to increase financial assistance to residents most
in need.
!o provide additional property tax relief to senior citizens of limited
Income.
Office of Finance
To be requested.
To be requested.
To be requested.
To be researched.
Josh Hamlin,
240-777-7892
Tax credit applies Countywide.
Not applicable.
F:\LAW\BILLS\1417 Property Tax Credit For Senior Citizens\LEGISLATIVE REQUEST REPORT.Doc
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ROCKVILLE, MARYLAND
MEMORANDUM
March 18,2014
TO:
FROM:
SUBJECT:
Craig Rice, President, County Council
Jennifer A. Hughes, Director, Office of
Joseph F. Beach, Director, Department of Finan
Manage~g~
tj''''.
I
1/
FEIS for
Bill 17·14,
Property Tax Credit·Senior Citizens of Limited Income
Please find attached the fiscal and economic impact statements for the above-referenced
legislation.
JAH:fz
cc: Bonnie Kirkland, Assistant Chief Administrative Officer
Lisa Austin, Offices of the County Executive
Joy Nurmi, Special Assistant to the County Executive
Patrick Lacefield. Director, Public Infonnation Office
Joseph F. Beach. Director, Department of Finance
Michael Coveyou, Department
of
Finance
David Platt, Department of Finance
Robert Hagedoom, Department of Finance
Jedediah
Millard, Office of Management and Budget
Blaise DeFazio, Office of Management and Budget
Alex
Espinosa,
Office
of
Management
and
Budget
Felicia
Zhang,
Office of Management
and
Budget
Naecm Mia, Office of Management Ilnd Budget
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Fiscal Impact Statement
Council Bill 17-14, Property Tax Credit - Senior Citizens of Limited Income
1. Legislative Summary
This legislation would double the amount of each year's property
tax
credit for senior
citizens of limited income from 25 percent to 50 percent of the State and County
Homeowners' Property Tax Credit awarded that year.
2.
An
estimate of changes in County revenues and expenditures regardless of whether the
revenues or expenditures are assumed in the recommended or approved budget. Includes
source of information, asswnptions, and methodologies
used.
Under the current program, the number of recipients was 3,063 in levy year 2012.
Finance assumes that the number of recipients will remain the same under the proposed
legislation. Also, under the CWTent program. the average credit increased at an average
annual
rate of
4
percent. Therefore, Finance assumes that the average credit
will
increase
from $179.15 in levy 2012 to $193.88 in levy year 2014 (fiscal year 2015). The total
amount for the program, under: the current program, would increase from $548,733 to
approximately $593.850 by levy year 2014.
The bill proposes to increases the
tax
credit from 25 percent or 50 percent thereby
doubling the amount ofthe average credit from $193.88 to $387.76 for each recipient.
Therefore, the
total
amount of the program would be approximately $1,187,700 in levy
year 2015.
Sources of information: Department of Finance and the Department of Finance's
Tax
Expenditure Report,
June 2013
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
Finance assumes that the nwnber of recipients will effectively remain constant through
the next six fiscal years with average annual increases of 4%.
Recipients
Average Credit·
Total
FY15
3068
193.88
594,824
FY16
3100
201.64
625,069
FY17
3100
209.70
650,072
FY18
FY19
3100
226.81
703,118
3100
218.09
676,075
FY20
3100
235.88
731,242
-Includes 4% average annual increase
4.
An
actuarial analysis through the entire amortization period for each bill that would affect
retiree pension or group insurance costs.
N/A
5. Later actions that may affect future revenue and expenditures if the bill authorizes future
spending.
N/A
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6.
An
estimate of the staff time needed to
imple~ent
the bill.
The Department of Finance does not anticipate
the
need for additional staff'time needed
to implement Bill
17-14.
7.
An
explanation of how the addition of new staff responsibilities would affect other duties.
See #6
8.
An
estimate of costs when an additional appropriation is needed.
N/A
9. A
description ofany variable that could affect revenue and cost estimates.
Variables affecting the cost ofthis program include the number of recipients and the rate
of the match to
the
County and State Homeowner's Property
Tax
Credit
(25
percent
CUITentiy,
50
percent proposed by Bill
17-14).
10. Ranges of revenue or expenditures that are uncertain or difficuJt to project.
N/A
11.
If a bill is likely to have no fiscal impact, why that is the case.
N/A
12.
Other fiscal impacts or comments.
N/A
13.
The following contributed to and concurred
with
this analysis: (Enter name and
department),
Jedecliah Millard - Office of Management and Budget
Robert Hagedoom - Department of Finance
~a~1J4
' £ :
Hughes::rect
r
Date
Office ofManagement and Budget
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Economic Impact Statement
Bill 17-14, Property Tax Credit - Senior Citizens of Limited Income
Background:
This legislation would double the amount of each year's property
tax
credit for senior
citizens of limited income from 25 percent to 50 percent of the State and County
Homeowners' Property Tax Credit awarded that year.
1.
The sources of information, assumptions, and methodologies used.
Department of Finance,
Tax Expenditure Report,
June 2013.
The report provides a description and data on the estimated number of recipients ofthe
senior
tax
credit and the amount of the credit. Based on the latest data for levy year 2012,
there were an estimated 3,063 recipients who received a total of$548,733 or $179.15 per
recipient.
In
levy year 2011, the average credit was $173.81 and in levy year 2010, the
average credit was $165.40.
2. A description of any variable that could affect the economic impact estimates.
The variables that could affect the economic impact are the number of recipients and the
average credit. Under the current program, the number of recipients was 3,063 in levy
2012. Finance assumes that the number of recipients will remain the same under the
proposed legislation. Also, under the current program, the average credit increased at an
average annual rate of 4 percent. Therefore, Finance assumes that the average credit will
increase from $179.15 in levy 2012 to $193.88 in levy year 2014 (fiscal year 2015). The
total amount for the program, under the current program, would increase from $548,733
to approximately $593,850 by levy year 2014.
The bill proposes to increase the
tax
credit from 25 percent or 50 percent thereby
doubling the amount ofthe average credit from $193.88 to $387.76 for each recipient.
Therefore, the total amount of the program would be approximately $1,187,700
in
levy
year 2015.
3. The Bill's positive or negative effect, if any on employment, spending, saving,
investment, incomes, and property values in the County.
The bill would have a positive economic effect on senior citizens who are currently
eligible for the senior tax credit. Their average annual disposable income would increase
from approximately $194 dollars per year to approximately $388 dollars per year. This
bill is not assumed to have a material effeCt on employment, investment, and property
values.
Page 1 of2
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Eeonomic Impact Statement
BiU 17-14, Property Tax Credit - SenJor Citizens of Limited Income
4.
If
8
Bill is Ukely to have no eeonomic impact, why is that the case?
See #3
5.
ne
foUowing contributed to aod concurred with this analysis:
David
Platt
and
Robert Hagedoom ofthe Department of Finance.
J
~L
Director
~
:'F?Bth,
'7-!v-­
Department ofFinance
Da~
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