Clerk's Note: Corrected to include Lines 54 and 55 as enacted.
Bill No.
22-14
Concerning: Prooertv Tax
Rent
Reduction Tax Credit
Revised: 10/21/2014
Draft No. 7
Introduced:
April 22. 2014
Enacted:
October 28. 2014
Executive:
November 10. 2014
Effective:
July 1. 2015
Sunset Date: June 30. 2018
Ch.
_1§__,
Laws of Mont. Co.
2014
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council Vice President Leventhal and Councilmembers Berliner, Elrich, 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
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deleted.from 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. 22-14
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Sec. 1. Section [[52-18T]] 52-18W is added as follows:
[[52-18T]] 52-18W.
disabled tenants.
.{fil
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Property tax credit= reduced rent for elderly or
Definitions.
In
this Section:
Director
means the Director of Finance or the Director's designee.
Elderly or disabled tenant
means
subsection
ill
and:
~
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tenant who meets the income- and
asset-based eligibility requirements established
12y
regulation under
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9
10
ill
ill
is at least 65 years old;
has been found permanently and totally disabled and has
qualified for benefits under:
(A)
(ID
the Social Security Act;
the Railroad Retirement Act;
any federal act for members of the United States armed
forces; or
ill}
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©
any federal retirement system; or
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ill
has been found permanently and totally disabled
12y
the County
health officer.
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Market rent
means an amount, determined
12y
the Department of
Housing and Community Affairs, equal to:
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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.
-2-
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BILL NO. 22-14
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Tax-Property Article
means the Tax-Property Article of the Maryland
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Code.
.(hl
Credit.
As authorized
of~
hY
§9-219 of the Tax-Property Article, the
owner
rental dwelling who provides reduced rent to an elderly or
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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
.Qy
the owner to elderly or disabled tenants
during the tax year.
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ill
A credit granted to
~
person under this Section must not exceed
the amount of County property tax paid
.Qy
the person in the tax
year in which the credit is granted.
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@
Annual aggregate limit.
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ill
Unless
~
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.
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ill
ill
Credits must be granted in the order in which the Department of
Finance receives complete applications under subsection
.{il
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 of Finance received the application.
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53
W
Application.
ill
A property owner must submit an application to the Director on
or before the date that the Director sets.
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55
ill
An
application must:
(A)
be on the form that the Director requires; and
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BILL NO. 22-14
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ill}
demonstrate that the taxpayer is entitled to the credit.
The County Executive must adopt regulations under
administer this Section, including income- and asset-
ill
Regulations.
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method
ill
to
based tenant eligibility requirements.
[[{g}
Applicability.
The credit authorized
J2y
this Section applies to any tax
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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Date
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Approved:
~:~~
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This is a correct copy of Council action.
Zbvldddl'(
!Date
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Linda M. Lauer, Clerk of the Council
Date
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