GO Item 3
January 19,2017
Worksession
MEMORANDUM
January 17,2017
TO:
FROM:
SUBJECT:
Government Operations and Fiscal Policy Committee
Amanda Mihill, Legislative AttomeyaA'0Qdult
Worksession 2:
Bill 42-16, Taxation - Property Tax Credit - Elderly Individuals
and Veterans
Bill 42-16, Taxation - Property Tax Credit - Elderly Individuals and Veterans, sponsored by Lead
Sponsor then-Council President Floreen and Co-Sponsors Councilmembers Navarro, Rice, and Katz,
was introduced on October 18, 2016. A public hearing was held on November 15 (see testimony
and correspondence on ©14-31). A Government Operations and Fiscal Policy Committee
worksession was held on December 12, 2016.
Bill 42-16 would create a property tax credit for certain elderly individuals and veterans.
Specifically, Bill 42-16 would provide a 20% county property tax credit for 5 years on an eligible
individual's home.
An
eligible individual is an individual that is:
(1)
at least 65 years old and has
lived in the same dwelling for the preceding 40 years; or (2) is at least 65 years old and is a retired
member of the United States armed forces. Finally, and eligible individual may receive a property
tax credit if the home for which they are seeking the credit is assessed at no more than $500,000.
Background
The County has a number of programs to provide
tax
relief to different subsets of the
Coun~y
populous, including programs for senior citizens and veterans. These programs include the
property tax credit for seniors of limited income (County Code §52-92), the residential real
property tax deferral for seniors of limited income (County Code §52-22), and the property tax
refund for disabled veterans and blind persons (County Code §52-23). In addition to these
programs, senior citizens and veterans may be eligible for other, more generally applicable tax
relief programs, such as the homeowners tax credit (County Code §52-85).
The County was granted the authority to institute the tax credit provided in Bill 42-16 earlier this
year via House Bill 898 (©5-6). The enabling legislation provided for specific definitions for
"eligible individual" (which are repeated in Bill 42-16), and provided for the maximum amount of
property tax credit (no more than 20% of the tax imposed) and the maximum duration of the
property tax credit (up to 5 years). The enabling legislation further allows the County to provide
for the maximum assessed value of a dwelling eligible for the tax credit and additional eligibility
criteria.
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Summary of Public Hearing Testimony and Correspondence
The Council has heard from several residents and interested individuals. Most individuals that
contacted the Council supported Bill 42-16 with amendments (©14-28). Suggested amendments
will be addressed below. Two individuals, Joyce Siegel and Barbara Siegel opposed Bill 42-16. In
their opposition letters, these individuals did not believe that the Council should encourage "aging
in place" for senior residents (©29-31). The County Executive has not taken a position on Bill
42-16.
Summary of First Committee Worksession
The Committee held a first worksession on Bill 42-16 on December 12, 2016. At that worksession,
the Committee reviewed background issues and addressed several issues that had been raised for
Committee consideration. The Committee discussed the following three issues and Council staff
noted that amendments to the state enabling legislation would be required to address these issues:
• whether eligibility of the tax credit be expanded to include retired members ofthe u.S.
Public Health Service and National Oceanic and Atmospheric Administration;
• whether eligibility for the tax credit should be limited to seniors who have lived in their
house for 40 years; and
• whether the duration of the tax credit be expanded beyond 5 years.
Issues for Committee Consideration
1.
Should the maximum assessed value
0/
a dwelling be increased?
Bill 42-16 would
limit eligibility of the tax credit to dwellings that have a maximum assessed value of $500,000.
Several residents urged the Council to increase the maximum assessed value, though they offered
different maximum values (©26-28). Resident Pat Garvey suggested including yearly inflation
adjustments to this cap (©28).
Council staff comments: Unlike the issues raised above, the state enabling legislation
allows the County the discretion to set a maximum assessed value of a dwelling or not and to
determine what the maximum assessed value should be. The Fiscal Impact Statement (©7)
estimates that the revenue loss from the amount of tax credits granted would likely be about $1.14
million per year (assuming that the maximum assessed value was $500,000.). At the first
worksession, the Committee requested additional information on the estimated fiscal impact for
various assessment values. This information is provided in the table below.
Max.
Assessed
Value
Est.
Fiscal
Impact
$500,000
$550,000
$600,000
$650,000
$700,000
$750,000
$1,138,420
$1,282,060
$1,425,699
$1,364,413
$1,492,289
$1,620,165
2
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In determining whether to raise the maximum assessed value cap, Committee members
must weigh the benefits to eligible residents against the decline in revenue that is likely to result
from increasing the cap.
2. Other recommended amendments.
Bill 42-16 requires that a property owner submit an
application to the Director on or before a date the Director sets. The County Attorney's office
recommends that the law establish the submission deadline and recommended April 1. Council
staff recommendation: amend Bill 42-16 to require a property owner to submit an application by
April 1 each year that the individual wants to receive the credit.
This packet contains:
Bill 42-16
Legislative Request Report
State enabling legislation
Fiscal and Economic Impact statements
Select testimony and written correspondence
Circle
#
1
4
5
7
14
F:\LA w\BILLS\1642 Tax Credit For Elderly-Vet\GO Memo 2.Docx
3
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Bill No.
42-16
Concerning: Taxation - Property Tax
Credit - Elderly Individuals and
Veterans
Revised: 10/13/2016
Draft No. 4
Introduced:
October 18,2016
Expires:
April 18, 2018
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:
---'..!.No~n~e'___
_ _ _ _ __
ChI _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President Floreen
Co-Sponsors: Councilmembers Navarro, Rice, and Katz
AN
ACT to:
(1)
(2)
(3)
create a property
tax
credit for certain elderly individuals and veterans;
provide for the eligibility for the property
tax
credit; and
generally amend the law relating to property
tax
credits.
By adding
Montgomery County Code
Chapter 52, Taxation
Section 52-110, Property
tax
credit - elderly individuals and veterans
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.
Deleted from existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves thefollowing Act:
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BILL
No. 42-16
1
2
Sec.
I.
Section"
52-110
is added as follows:
52-110.
Property tax credit
=
elderly individuals and veterans.
3
4
5
W
Definitions.
In
this Section, the following words have the meanings
indicated:
Department
means the Department of Finance.
Director
means the Director of the Department or the Director's
designee.
6
7
8
9
10
11
Dwelling
has the same meaning as in §9-105 ofthe Tax-Property Article
of the Maryland Code.
(Q)
Credit.
As authorized
Qy
§9-257 of the Tax-Property Article of the
Maryland Code, an eligible individual may receive
~
credit against the
12
13
14
County property
tax
imposed on the dwelling of an eligible individual.
(£)
Eligibility.
An individual is eligible to receive
~
property
tax
credit if:
ill
the individual is at least 65 years old and:
CA)
has lived in the same dwelling for at least the preceding 40
years; or
15
16
17
ill}
is
~
retired member ofthe United States anned forces; and
18
19
20
ill
@
the dwelling for which
~
property
tax
credit is sought has
~
maximum assessed value of $500,000.
Amount and duration
Q[
credit.
21
22
ill
ill
The credit allowed under this Section is 20% of the county
property tax imposed on the dwelling.
The credit must be granted each year for
l
years if the individual
remains eligible for the credit.
23
24
o
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BILL No. 42-16
25
1iU
Application.
26
27
ill
A property owner must submit an application to the Director on or
before the date that the Director sets for each year that the
individual remains eligible for the credit.
28
29
30
31
32
33
ill
An application must:
(A)
be on the form that the Director requires; and
demonstrate that the taxpayer is entitled to the credit.
ill)
ill
Approved:
Regulations.
The County Executive may issue regulations under Method
2
-
this tax
-
to administer
- -
credit.
34
35
Roger Berliner, President, County Council
36
Approved:
Date
37
Isiah Leggett, County Executive
38
This is a correct copy ofCouncil action.
Date
39
Linda M. Lauer, Clerk ofthe Council
Date
-3-
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tax
credit for elderiy-vet\bill 4.docx
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LEGISLATIVE REQUEST REPORT
Bill 42-16
Taxation
-
Property Tax Credit
-
Elderly Individuals and Veterans
DESCRIPTION:
Bill 42-16 would create a property tax credit for certain elderly
individuals and veterans and provide for the eligibility for the property
tax credit.
During the 2016 legislative session, the General Assembly enacted,
and the Governor signed, House Bill 898 which authorized local
governments to provide for a property tax credit for certain elderly
individuals and veterans.
To implement authority granted by the State.
Finance
To be requested.
To be requested.
To be requested.
To be researched.
Amanda Mihill, Legislative Attorney, 240-777-7815
Taxes and credits apply countywide
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IlVIPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
NI
A
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LAWRENCE
J.
HOGAN,
JR.,
Governor
Chapter 498
Ch.498
(House Bill 898)
AN ACT concerning
Property Tax Credit - Elderly Individuals and Veterans
FOR the purpose of authorizing the Mayor and City Council of Baltimore City and the
governing body of a county or municipal corporation to provide a property tax credit
against the county or municipal corporation property tax imposed on the dwelling of
certain individuals who are elderly or veterans; providing for the amount and
duration of the tax credit; authorizing the Mayor and City Council of Baltimore City
and the governing body of a county or municipal corporation to provide for
c~rtain
matters relating to the tax credit; defining certain terms; providing for the
application of this Act; and generally relating to a property tax credit for certain
individuals who are elderly or veterans.
BY adding to
Article - Tax - Property
Section 9-257
Annotated Code of Maryland
(2012 Replacement Volume and 2015 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article - Tax - Property
9-257.
(A)
(1)
INDICATED.
IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
(2)
TITLE;
"DWELLING" HAS THE MEANING STATED IN
§
9-105
OF THIS
(3)
"ELIGIBLE INDIVIDUAL" MEANS:
(I)
AN INDIVIDUAL WHO IS AT LEAST
65
YEARS OLD AND HAS
LIVED IN THE SAME DWELLING FOR AT LEAST THE PRECEDING
40
YEARS; OR
(II) AN INDIVIDUAL WHO IS AT LEAST
65
YEARS OLD AND IS A
RETIRED MEMBER OF THE ARMED FORCES OF THE UNITED STATES.
-1­
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Ch.498
2016 LAWS OF MARYLAND
(B)
THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY GRANT, BY LAW,
A PROPERTY TAX CREDIT UNDER THIS SECTION AGAINST THE COUNTY OR
MUNICIPAL CORPORATION PROPERTY TAX IMPOSED ON THE DWELLING OF AN
ELIGIBLE INDIVIDUAL.
(C)
THE PROPERTY TAX CREDIT ALLOWED UNDER THIS SECTION MAY:
NOT EXCEED
20%
OF THE COUNTY OR MUNICIPAL CORPORATION
PROPERTY TAX IMPOSED ON THE PROPERTY; AND
(1)
(2)
BE GRANTED FOR A PERIOD OF UP TO
5
YEARS.
(D)
THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY PROVIDE, BY
LAW, FOR:
THE MAXIMUM ASSESSED VALUE OF A DWELLING THAT IS
ELIGIBLE FOR THE TAX CREDIT UNDER THIS SECTION;
(1)
(2)
THIS SECTION;
ADDITIONAL ELIGIBILITY CRITERIA FOR THE TAX CREDIT UNDER
REGULATIONS AND PROCEDURES FOR THE APPLICATION AND
UNIFORM PROCESSING OF REQUESTS FOR THE TAX CREDIT; AND
ANY OTHER PROVISION NECESSARY TO CARRY OUT THE TAX
CREDIT UNDER THIS SECTION.
(3)
(4)
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June
1, 2016, and shall be applicable to all taxable years beginning after June 30, 2016.
Approved by the Governor, May 10, 2016.
-2­
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ROCKVILLE, MARYLAND
MEMORANDUM
November 8, 2016
TO:
Nancy Floreen, President, County Council
FROM:
SUBJECT:
Jennifer A.
Office
Budget
Alexandre
A.~i~'a;l)lrector.
Department ofFmance
FEIS for Bill 42-16, Taxation -Property Ta.x Credit·- Elderly Individuals and
Veterans
H~.~~~or.
ofManagefit~ntand
Plea..<.;e find attached the fiscal and economic
impact
statements
for the
above­
reierenced legislations.
JAH:fz
cc;
BOn}lie
Kirkland.
Assistant
Chief Administrative Officer
Lisa
Austin, Offices
of
the County Executive
Joy
Nurmi, Special Assistant
to
the County Executive
Patrick Lacefield. Director, Public
Information
Office
David Piatt, Department
of
Fit'lance
Dennis Hetman, Department of Finance
Jane Mukira, Office of Management and Budget
Naeem
Mia~
OtJice of Management and Budget
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Fiscal Impact Statement
DiU 42-i 6, Taxation - Property Tax Credit - Elderly Individuals and Veterans
1. Legislative Summary
Bill 42-16 provides a property
tax
credit for certain property o\\-ners who are at least 65
years of
age
and either,
(1)
have resided afthe
same
property for at
least
40 years, or
(2)
are retired from the
t.nilitary~
The tax credit is available to all taxpayers "wo meet these
requirements, if
their
property's assessed value
is
no mote than $500,000.
2.
An
estimate of changes
in
County
~venu~
and expenditures regardless of whether
the revenUeS or expenditures are assumed in the recommended or approved budget.
Includes source of information, assumptions, aud methodologies used.
The estimated amount of the credit granted in the fIrst year
is
approximately
$1.14
million, which is not currently budgeted in the FYI7 approved budget.
The DepartInentofFinance.(Department) notes that there are
·189
property
tax
accOunts
in
the County
that
have been owned by the same entity for
at
least 40 years. The
Commission on Veterans Affairs provided
the
Department data that
was
used
to
estimate
that there are approximately 1,964 County residents who are at least 65 years of age and
are
also retired
from the
U.S.
Anned Forces.
The
Department notes
that this
program
will
likely have more eligible applicants
than
all
other County-administered property
tax
credits combined. Therefore, the Department
believes
that it
will
n~
one additional
full~time
tax
credit administrator
(Grade 18
to
23)
to handle this additional workload.
3.
Revenue and expenditure estimates covering
at
least
the
next
6
fIScal
years.
The amount of
tax
credits granted will likely be approJ(imately
$
L 14 million per year
over the next 6 years. An additional expenditure
fot
a new ad:ministrative position v"ill
range from $74,000 to $94,000 per year, inCluding benefits, depending on the grade of
the
position.
.
.
The re'V-enue
loss would
be
approximately
$6.8 million
over
six
years,
and
expenditures
would be between $4#,000 and
$564,000
over six years. Expenditures
are
primarily
personnel costs for administration of
the
tax
credits. The Department ofFina:nce currently
administers
18 tax
credit programs
and
two
tax
deferral programs with only one
dedicated position. The scope and impact of this new
tax
¢redit program, though only
incremental on an
on~going
basis, is such
that additional dedicated resources
are
required
to
continue
to
effectively and efficiently administer these programs.
4.
An
aduarial analysis through the entire amortization period for each bill that would
affect retiree pension or
group
insurance
costs.
Not applicable.
5. An estimate of
expenditures related
to County's information rechDology (IT)
systems, including Enterprise Resource Planning (ERP) systems.
Page 1
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Fiscal Impact Statement
Bill 42-16, Taxation - Property Tax Credit - Elderly Individuals and Veterans
Not applicable.
6. Later actions that may affect
future
revenue and expenditures
if
the
bill
authorizes
future spending.
Not applicable.
7.
An
estimate of the staff time needed to implement the bill.
It is estimated that one additional full-time position is needed to properly implement the
tax
credit program.
.
The Department of Finance currently administers 18
tax
credit programs and two tax
deferral programs with only one dedicated position. The scope
and
impact ofthis new
tax
credit program, though only incremental on
an
on-going
basis,
is
such
that
additional
dedicated resources are needed to continue
to
effectively and efficiently administer these
programs.
Initial implementation should take approximately 60 hours and includes developing
informational material for print
and
for posting On
Courtty
websites to explain the
program, including the origip. of the prognim. the applicatiOn process. and the timing of
the entire program (the estimated schedule
to
get from the receipt ofan application
by
the
DepartmehtofFinance
to
the actual posting of
the
taxcredit
to
the
tax
bill). Initial
implementation includes setting
up
internaltrackillg of applications and
the
credits
in
a
MS
Excel
spreadsheet,
to begin
the
program. It includes working
with
Finance-IT,
and
possiply DTS,
to
get
the initial website(s)
rtu:iJ:iiIig.
It
also includes training Treasury
Division staff on what to do when they receive applications in the mail, or are asked
questions by customers at our two service counters. Initial implementation
also
includes
making paper copies ofapplication packets which
will
include
the
infonnational material.
After implementation,
initial
administration of the program entails accepting applications,
reviewing
them,
making a decision, calculating the
tax
credits (initially in
MS
Excel, but
potentially in
a
stand-alone application developed by Finance-IT or DTS)
and
then
preparing files of
tax
credits for processing
in
the
tax
system. The number of applications
received
in
the first year will likely be close
to
2,000, ifnot higher. This will require full­
time
work for most of the year.
In .addition
to
the administrative work:,
the
administrator
will
work with Finance-IT or
DTS
(or both) as the functional lead for developing a
software application specific to
this tax
credit, because of the number ofcredits that
\\;11
likely
be
granted.
It
is not possible
to
determine
if
a new software application is
necessary, at this time.
Page 2
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FiscaHmpact Statement
Bm
:;1·16,
Taxation - Pr.operty Tax Credit'- Elderly Individuals and Vete.-ans
After the first year, ongoing administration entails accepting applications, revie\\i.ng
them, making a decision, calculating the
tax
credits and then preparing files of
tax
credits
for processing in the ta.x system. For example:
.
a. For taxpayers who have already received the credit
in
the previous year, ongoing
admitristration entails certifYing
that
the owner of record who received the tax
credit
in
the previous year remains the owner of record;
calcul~ngthe
tax
credit
for the new year, and preparing files oftax credits for processing in the
tax
system.
b.
The administrative workload after the first year is expected to be lower, but the
workload
v.i.1l
be more than current
staffhave
the
ability
to
provide, without
degradation of other cu....tomer service related work, as noted above.
8. An explanati.on .of how the additi.on .of new staff resp.onsibilities would affect .other
duties.
If no additional staff are
granted,
these tax credits will
be
scheduled to
be made
after all
other credits are given, and other work, such as
tax
refunds, will also be delayed in order
to make certain that all of the tax credits are provided in as timely a manner
a..fi
possible.
9. An estimate.of costs when an additi.onal appr.opriati.on
is
needed.
Not applicable.
10. A descripti.on of any variable that could affect revenue and cost estimates.
The
number of eligible applicants may be higher or lower
than
estimated. There may
be
a
number of applications that
are ineligible
because
their
property value
is over $500,000
or increases
to
over $500,000
over time.
U. Ranges of revenue .or expenditures that are uncertain or difficult to project.
See above.
12.
If
a bill is
likely
t.o have no fiscal impact, why that
is
the case.
Not applicable.
13. Other fiscal impacts .or comments.
Not applicable.
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Fiscal Impact Statement
,
Bill 42-16, Taxation - Property Tax Credit - Elderly Individuals and Veterans
14. The following contributed to and concurred with this analysis:
Mike Coveyou, David Platt, Dennis Hetman, Finance
Jane
Mukira, OMB;
ok
!
Page4of4
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Economic
Impact Statement
Bill 4246
Taxation -
Property
Tax
Credit -
Elderly Indil'iduals and
Veterans
Background:
Bill 42-16 would create a property
tax.
credit for certain elderly individuals and veterans and
provide for the eligibility
for
the property
tax
credit. During the
2016
legislative session, the
General Assembly
enacted,
and
the
Governor signed, House Bill 898 which authorized local
governments
to
provide for a property
tax
credit for certain elderly individuals aqd veterans.
An
individual would be eligible
to
receive
a
property
tax
credit if:
1.)
the
individual
is
at least
65
years old and: (a) has
lived
in
the same dwelling for
at
least the preceding 40 Year's; or (b)
is a
retired member of the United States armed forces and 2.) the dwelling fbt which a property tax
credit is sought has
amaximwn assessed
value
of
$500,000.
1. The sources
of
information, assumptions, and methodologies
used.
U.S.
Census Bureau, 2015 American Community
Survey
Commission of Veterans Affairs, 2015 report
The Department of
Finance
has
ton;nulated an estimate of
the annual
property
tax
credit as a
result of
the
Bill assuming a median taxable assessmcnt base of$325,000 for properties valued
less
than
$500,000, a real propcrty
tax
rate
of
$1.0264, and an income
taX
offset credit of $692.
There are
an
estimated 189 property
tax
accounts in
the
County
that
have. been
owned
by the
same entity for at least
40
years. The Commission on Veterans Affairs provided
data
that
was
used to estimate
that
there
are
approximately 1.964 men
and
women
in
the County who are at
least 65 years of age and who are also retired from the U.S. Armed Forces.
2. A
description
of any variable that
could
affect the
economic:
impad estimates.
Given the assumt'Ci totals, the Department of Finance estimates the amount of credit granted in
the first
year to be approximately
$1.14
million:
65+ and 40
years
$325,000
$1.0264
$3,335.80
($692.00)
1
$2,643.80
I
20.00%
j
$528.76
1891
Retired
Military
$325.000
$1.0264 ,
Median
Taxable
Assessment at
or below
$500,000
Weighted Real
Property
Tax
Rate: FY2017
I
Income Tax Offset (Tax credit)
Estimated Tax Bill
Credit Bill
42-16:
Section S2-110(d)(1)
Amount of Credit Allowed
under
Bi1142-16
Number of estimated applicants
Estimate loss
of
Property Tax Revenues
I
I
I
!
$99,9361
$3,335.80
!
($6n.OO)
$2,643.80
20.00%
$528.76
1,964
$1,038,485
TOTAL ESTIMATED lOSS
Page 1
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Economic Impact Statement
BiU 42-16 Taxation - Property Tax Credit - Elderly Individuals and Veterans
Variables that could affect the economic
impact
estimate include the number of retire4 military
and
individuals over the
age
of
65 that
have lived
in
the same
dwelling for
OYer
40
years.
There
is
also
the
potential
for
overlap
between
the
two
groups that
coilld
slightly
reduce estimates.
3. The Bill's positive or negative
effect~
if
any on employment, spending, sa\ings,
investment, incomes, and property values
in
the County.
Based
on
the asswnptions and calculations, Bill 42-16 could
have
a
de minimis
positive
economic impact on the personal income for
those
individuals
over the
age of 65 and retired
military that qualify for the credit. On a per household basis the credit equates to approximately
$528 per
year
for
those
eligible. On
amacroecon()mic
level, the Bill Will not
dramatically
alter
employment,spending, or
property values
in any measurable way.
4.
If
a Bill is likely to have no economic impact, why is that the case?
This
legislation
will have an
economic
impact. Seeparagrdph #3
5. The following contributed to or concurred with this analysis:
David Platt)
Dennis
Hetman,
and Rob
Hagedoorn,
Finance.
Date
Page 2 of2
@
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Monigl?lTIeryCou,nty
Chapter
P.O. 'Box 34127
West
Betlie$,
·.Mar)'lqiid
·2Q821~0127
Tesfirnony
re,garding
Cour\cilBil142-16
November 15, 20
16
Good
qfterno()h
Pn:;lsident
Fl6reei!
boprnembet$
of
th~C:qliD:tvC6~ncil,1
ortl
Dqvici
H.
Peter~9h
<Jnq
I.
qryl
h~te
lqdbYQnbehallof
the
M9ntgOrn,~ry
CQ~nty
Chopter;
the
Ipcol offiliote
of
lh.~
notiQnot MiUtoryOfficeTS
As~ociotiQ.n
of
America
(M0AA1.
MQAA ond.
ifsoffiliated
chopters
ore
non-paniSQH
adVOcates
forour Nation's
seven
unIformed
services..·
.
ThisbiU
flowsftom
State Ie gisla
fion
enactededrlierthisyear
(PlB898),
providing aUfhorlty
fOrd
loedl
propertyfdx credit .16rcertdln
lndividuo'ls, and
specifying cerlbir'lC6nditidflS for
ellglOiH1y:
In
general;
my
cl1QPterm~h'}ber$
sGppprfthe 0c:f9ptiOriollhis
legjslotipnby
Morjtg6rneryGotJnty~
We
qat
hOWeYer~
hqve q
conperoapoljt ooe qspectof
the
Pill's
provi$ions~qnd w~se~~
your
qssistan~e
andSlJPport forootqiningo
modification JOqqjust
its seGtibnon
eligjbiHty~
Our concern regardlng COlJncilBill 42..16is bhlywItn tneiiEligibillty'i
provision os drafted.
Secti611~2'-110(cJfl)lB)i
pr6vlqes
eligibility fo
rE?H'r~d
members'ot-the "armed
f¢r¢es,
"woo
al~()
meet
theqge
requirement.
lrUhe
$nopling
State
leQislqtiqn,
if
descripedds" Ao
ACI¢on<.:~rrijri9.Prop¢rty
Tox
Credit-., Elderly lndivk:fuals
and
Veterans.
n
Tbereis sometbinQof
0.
disconnect
in
this formulation. Maryland hasadefinftionof
"veteron
u
used
In
Qther]egislqtion
thafis
more
inclv.slve.
encompassing
oJlseven
"uniformed services,"nofjusf
the
five
'iormedservices~i'ltls
my
chapter's
respectful
request
thatourCoun1y
Council recqgtHze.
that
anuhlntended
,discrepancy
may
wen
6x1stih
the sfate
H;~gislatioh~
whIch
WoUld
heed a
technical
correction
in the'
comIng General
Assernplysession~ W~oskthClt
the
Council
bring
this
c:if¢urnstqn¢$
t9tne
att~ntiQn()f th~
CQunty's
House
and
S~nat~ c:fel~gqtionsi
portk;l.!I.qrfylhosewhe
serve
on
th~J'ous.e
Woys
ond.MeonsCommittee,
oH of
whom
w~reQO~SPQnsQrs.
is
of the House
b.ilL
.
Ihmy Original readjngof theenabllhgStatelegislatior1,
my
assumption
wQsfhatIf
appeared
to includE? kmguageproviding
locaijLJrisdk:tions
with
d.
certoin
.orn()lJnt
of
discreti()fl
in
,s~ttingddqiol'iprial"eJigibilit:Y c:rjt~tiot
Hhq$t
SectiQn9'-2tJ7 of
the
Tox-Pr9perty
A.rti(JI$,
Port
P
sets
forth
"Th¢... gov$h)jng
PQdy
ofa
county., •may
provldeiPyJaw;
for: {2J oddiijona1eligibiliiy criteria
fqrjhe
tqx.
@
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credrfunder this.section."
I
was informed
by
your
legi~ative(]ttorneyjyst
rec~ritlySVcHQn
QSSlJmption
was.incorrect
and
that
gnlyo modificotiqn
tothe
enoblltig
l~gisl(]fIoncm.)lq prodLJc~the
<>vtcorne
my
chaptersee~s"
1served ,in two of my
country's
uniforms
over
a
38
year
Cdreer.
I
cah
see
no
justified
explonctiQHTOr limiting
eligibility in this legislatioh, bthetthcln.
perhaps
d
draftitlgoversight
by
the
GenerclAssembly.Members
Qf
the
Commissioned
Corps
of
the
United
States
PubliC
Hedlth
SerYk;e
drid
the
COh1miS$jqn~d<;orpsof
the
National Oceahlcand
AtrT19Spheric
Aqminist(otion
Jake
th~sQme
commissioning
oath
before
the
flag
of our
copntry,as
do
mernb~rs
ofthe
armed
forc~s.
For their
seNlce
tpQur Nation, they earn .andreceive
the
same
pay,
entitlements,
oodbenefifs as
those
eqrned
by
members
of the
other
services.
They are
on
duty
24/71365,
unless
they
are
on
leave~
ond
thayere,
always
$.I,JbJect
to
orders
to
any
assig.ned duty, and to .recall.
DraWing
011
my
oWn
career as
an
example,
during
my
two
late-career sea
duty
toursiri command
()f
NOAA
ships,
1was subject to
the
sarne
dccQuntabiiHies;
and
responsfqilities
ds
NavYdndCodstGu.ard
officers·
in
GOrnrY1dnd>.Whije
more could pe.sqid
if
time
permitt$d, rthink
ftlis
gives
yqu
a
$erise'thot
a
limitqtiQnon
eJigipi!lty
i~
qqite
.'
.
inequitable.;, that a technicql
correction
is
warranted.
One
last
fact
that
1
shar~
with·You is
that
both
the
PHS
Corps
and
the
NOAA Corps
have
their
service
headquarters
right
here
in Monfgomery
County,
PHS in .Rockvilleand NOAA
in5i1ver
Spring.
.
Thdnk.youfor
yoUr
attention
to the MOAAMontgomeW CovntYChapter'$
concerns
regarqing
this
legislation:..
It
is our
hope
that you will view these
cqnstituent
comments
in the
h~lpful
spirit
in whiCh
they are
offerecj
and
intended.
(/.
~J. ~t
1d£U.4-.--1__
Cqptqin Dovid.H.
PeterSOI"),
NOAA
(Ret]
President
Montgomery
County
Chapter
c/o 7612
Anamos.o
Way
Derwood, Maryland 20855
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Commissioned Officers Association
of the U.S. Public Health Service
November 10,2016
Montgomery County Council
100 Maryland .Avenue
Rockville. MD 20850
Dear Council Members:
Tam writing
to
you about BiJ142-16, which would provide tax reliefto certain elderly individuals and
retired veterans.
I
am Executive Director ofthe Commissioned Officers AssOciation ofthe U.S. Public Health
Service (USPHS), which has app-oximately 1100 members in Montgomery County. Of
these
perhaps
200
are
retired from the USPHS and might be eligible for this
tax
relief. Including the[JJ.
in
your legislation could result,
as
I
am sure you understand. in more officers remaining in Montgomery County after they retire.
The problem that some have identified it is that the Maryland law that
is
the basis for the County
CounciJ's action uses the term "armed forces" to define those eligible for this
tax
relief-
I
don't believe that
this
is actually a problem,
as
Maryland Jaw, Chapter 553, enacted
in
2007, includes U.S. Public Health Service
officers and officers of the National Oceanic and Atmospheric Administration
as
being members of a "military
service" for purposes oftuation in Maryland. (Copy attached). We believe that "armed forces" and
"'military
services"
are
totally syuonymous terms, and that there is therefore no reason
to
deny PHS and NOAA officers
the benefits of this proposed legislation. Federal law (42 U.S.Code 213 (d» states that, "Active service of
commissioned officcrs ofthe [U.S. Public Health] Service shall
be
deemed to
be
active military service in the
Armed Forces of tile United States ...... reinforcing our contention that the
terms
"armed forces" and "military
services" are synonymous. PHS officers
are
also recognized
as
"veterans" under this statutory provision and are
entitled to all the privileges thereof. (Copy ofstatute attached),
We therefore
urge
you as members of the Montgomery County Council to include
both
PHS and NOAA
officers in your eligibility criteria for
tax
relief. Their numbers are small, but
we
ask you to consider what they
contribute to Montgomery County and to our country through their work at the
FDA, NIH.
and other locations
in Montgomery County.
Please do not hesitate to contact me if you need additional information about the U.S. Public health
Service and its status under Maryland law.
Sincerely.
James
T.
Currie
Colonel. USA (Ret),
Ph.D.
Executive Director
820 I Corporate Drive.
Suite 1170.
Landover, Maryland
20785 • (30
I)
731·90&0 •
FAX (JO I) 731-9084
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MARTIN O'MALLEY. Governor
Ch.553
CHAPTER 553
(House Bill 392)
AN
ACT concerning
Income Tax - Subtraction Modification -
Military
Retirement Income for
Commissioned
Officers
FOR the purpose of altering a certain subtraction modification under the State income
tax
for certain military retirement income to include
certain
individuals;
defining certain terms; providing for
the
application of this
Act;
and generally
relating
to
the State income _ taxation of certain retirement income.
BY
repealing and reenacting, without amendments,
Article - Tax - General
Section 10-207(a)
Annotated Code of Maryland
(2004 Replacement Volume and
2006
Supplement)
BY
repealing
and reenacting, with amendments,
Article - Tax - General
Section 10-207(q)
Annotated Code of Maryland
(2004 Replacement Volume and
2006
Supplement)
SECTION
1.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND.
That the
Laws
of Maryland read
as
follows:
Article -
Tax. -
General
10-207.
(a)
To the extent included in federal adjusted
gross
income. the amounts
under this section are subtracted from the federal adjusted gross income of a resident
to detennine Maryland adjusted gross income. .
(q)
(1)
(i)
In this subsection the following words have the
meanings
indicated.
(ii)
"Military
service" means:
-1­
@
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Ch. 553
2007 LAWS OF MARYLAND
induction into the armed forces of
the
United
States
for training and service under the Selective Training and Service Act of 1940 or a
subsequent act of a similar nature;
2.
forces of the United States;
3.
forces of the United States;
4.
membership in a reserve component
of
the armed
1.
membership
in
an active component of the armed
membership
in
the Maryland National Guard; or
5.
[with
respect to a person separated from employment
on or after July
I,
1991,] active duty with the commissioned corps of the Public Health
Service,
the
National Oceanic and Atmospheric Administration, or the Coast and
Geodetic Survey.
"Military
retirement income" means retirement income
received as a result of
military
service.
(iii)
(2)
The subtraction under subsection (a) of this section includes the
first
$5,000
of military retirement income received by an individual during the taxable
year.
SECTION 2. AND BE IT FURTHER ENACTED, That this
Act
shall take
effect
July 1.
2007,
and shall
be
applicable to
all
taxable years beginning after December 31,
2006.
Approved by
the Governor,
May 17, 2007.
-2­
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42 U.S. Code
§
213 -
Military benefits
Current through Pub. L. 113-234.
(d)
Active service deemed active military service with respect to laws administered
by
Seeretary
~r
Veterans
Affairs
Active service of commissioned officers of the [US Public Health] Service shall
be
deemed to
be
active
military
sexvice in the Anned Forces of the United States for the purposes of all laws
administered by the Secretary of Veterans Affairs (except the Servicemen's Indemnity Act of
1951) and section 417 of this title.
(e) Active service deemed active military service with respect to Servicemembers
Civil
Relief Act
Active sexvice of commissioned officers of the Service shall
be
deemed
to
be active military
sexvice in the Armed Forces of the United States for the purposes ofall
rights,
privileges,
immunities, and benefits now or hereafter provided under the Servicemembers Civil Relief Act
(50
APR. U.S.C.
501
et seq.).
(t)
Active service deemed active military service with respect to anti-discrimination laws
Active sexvice of commissioned officers of the Service shall
be
deemed to
be
active military
sexvice in the
Anned
Forces ofthe United States for purposes of
aU
laws related
to
discrimination on the basis ofrace, color, sex. ethnicity, age. religion, and disability.
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From: "Fred Marks" <fred@finadirect.com>
Date:
10/31120165:31:56
PM
To: "county.counci1@montgomerycountymd.gov" <county.council@montgomerycountymd.gov>
Cc:
Subject: Proprty tax credit for seniors
Requiring one residence for 40 years is arbitrary and unfair. My wife and I have lived in just two houses
in
Gaithersburg for 52 years. Ask Sidney, he
will
confIrm that. We are in our eighties and you just jacked up
our property tax by 10% while giving Marriot a huge tax break. We need it; they don't.
Sincerely,
Fred and Patsy Marks
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From: "L CLAUDIA HANLON" <ponydublin@msn.com>
Date: 10/31120163:46:34 PM
To: "county.council@montgomerycountymd.gov" <county.council@montgomerycountymd.gov>
Cc:
Subject: Nancy Floreen's Bill 42-16
By simple arithmetic, to qualify just on the basis of length of time living in one residence, the owner living
continuous at the same residence for 40 years would have been 20 years old to qualify financially. This
would rarely apply to such a few, if any people at all, considering 40 years ago, would have been 1976
during the administration end (1977) ofFord and Carter 1977 to 1981 during a time of extremely high
interest rates. How long do you expect people to live in large numbers in Montgomery County.
Sounds like very little research was done before putting out the "sweet words" to the seniors living on
pensions whose only asset is a paid off mortgage but low on money for cost of living. This idea based on the
info in Nancy Floreen's Newsletter is a total waste of Tax Payers Money. I add that this age to qualify is the
only thing that was considered in my research.
There were other qualifications
&
regulations mentioned that probably just added to the complications of
getting any tax help.
I have lived in Montgomery County since 1950 but not all in the same house. Thank you for your public
service, but this is, in my opinion, not a good idea and a waste of your time
&
tax payer money.
L.C.Hanlon
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From: "Joan Bull" <BULLJ1@WESTAT.com>
Date:
10/31120163:39:05
PM
To: "county.council@montgomerycountymd.gov" <county.council@montgomerycountymd.gov>
Cc:
Subject: Bi1142-16
I moved to Montgomery County when I was 2 and, except for a couple years
in
college, have lived here all
my life.
I'll be 65 in a few years. But I won't qualify for the
tax
credit. You really expect me to have lived at the same
address for at least 40 years? Was this bill designed to help, what, 5 people?
Joan Bull
Kensington, MD
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From: "Robert Jenkins" <rj3684@gmai1.com>
Date:
111212016
10:27:16 AM
To: "county.council@montgomerycountymd.gov" <county.council@montgomerycountymd.gov>, "Robert
Jenkins" <rj3684@gmai1.com>
Cc:
Subject: Bill 42-16
If a person needs to be 65 years old and have lived in the same house for
40 years, That means that in order to qualify for this tax relief you must
have purchased the home prior to the age of25. Many residents were just
out of college and starting their careers and not able to buy their first
home prior to the age of25, thus severely limiting the numbers of long
term residents that would qualify for this relief. I would like to suggest
that the bill be amended to include any homeowner over the age of 66 and
living in the county for more than 30 years. That would encourage senior
citizens on fixed / retirement incomes to stay in their homes.
Regards
Robert Jenkins
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From: "Cindy Davis" <cdavisgo123@gmail.com>
Date:
11/5/20163:07:
10 PM
To: "county;counci1@montgomerycountymd.gov" <county.council@montgomerycountymd.gov>
Cc:
Subject: Bi1l42-16
Hello,
I'd like to know if the tax credit will be income based in addition to age
based. In addition, it would be more beneficial if the length of time to
have lived in the dwelling is reduced to 25 years. Most people don't live
in the homes they purchased at 20 years old.
Thank you for your time.
*Cindy Davis*
REIMAX Town Center
12505 Park Potomac Ave., Suite #220
Potomac, MD 20854
301-637-9762 Office
301-787-8744 Cell
Email isnotsecu*reorconfidential.REIMAX Town Center and our agents
will NEVER ask you about wiring instructions by email. If you receive any
email requesting bank information or suggesting updated wiring
instructions, it is FRAUD. Do not comply and make sure you inform us
immediately. *
* <http://www.agentssucceedhere.com/>*
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From: "Mel Banks" <melbanks@earthlink.net>
Date: 111112016 12:06:08 PM
To: "county.council@montgomerycountymd.gov" <county.council@montgomerycountymd.gov>
Cc: "eldabanks@earthlink.net" <eldabanks@earthlink.net>
Subject: Proposed Real Estate Tax Credit for Seniors
Dear Council Members:
As life-long residents of Montgomery County, now retired on fixed income and
facing ever-increasing real estate tax, health care costs, and other
incrementally increasing fees and taxes, we face the choice of living out
our lives here with an eroding standard of living, or relocating to a more
tax friendly state (such as Delaware, with no sales tax, and real estate tax
a third of what it is here.)
We applaud any effort to reduce our taxes, and the proposed 20% real estate
tax credit for seniors with 40 years in the same home would certainly be a
step in the right direction.
As worded in Ms. Floreen's email of
10/31116,
it sounds as if the annual
credit is only for five years. Is this correct? If so, when the credit
expires we'd be five years older, have lived in the home five more years,
and in more need of the credit than before. Hopefully the credit can be
renewed every five years, assuming we're still in the same house.
Thank: you,
Mel and Elda Banks
Silver Spring, MD
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Stanley D. Abrams
15101 EMORY LANE
ROCKVILLE, MARYLAND 20853
TELEPHONE: (301) 460-1030
October 25,2016
Hon. Nancy Floreen, President
Montgomery County Council
County Council Office Building
Sixth Floor
100 Maryland Avenue
Rockville, Maryland 20853
Re:
Bill No. 42-16
Property Taxation Credits
Dear President Floreen:
The above referenced Bill grants a property tax credit to seniors (over age 65) and
veterans who have lived in the same dwelling for at least the preceding 40 years, provided that
that the property does not have a maximum assessed value of $500,000.00.
I
believe this Bill
should be adopted but with a maximum limit of$7S0,000.00 for its application.
No one needs to tell you that Montgomery County is an expensive place to own a home
and a $SOO,OOO.OO limit on assessed value for those who have lived
in
a home for
40+
years and
seen assessment rise over that period would not qualify even in areas of modest incomes.
As
an
example even in my own middle income area in Rockville, assessed values 40 years ago were
around $SS,OOO.OO - $60,000.00 and today, they are between $600,000.00 - $650,000.00. This is
not unusual. Even in older down county areas being redeveloped or near metro, such as Silver
Spring, Wheaton, Glenmont and Rockville, property values have escalated.
So
if you really want
to help seniors and veterans who have invested in and improved their homes for four decades or
more and don't want or can't afford to move in a housing market dominated by expensive
condos or expensive rentals,
be
realistic. Even resale MPDV's
in
certain areas are at or above
$SOO,OOO.OO
in
sales prices.
Please consider this request when the PHED Committee meets on this Bill.
Thank You,
'StanleyD~
cc:
Councilman George Levanthal
Councilman Hans Reimer
~
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From: "Naomi Yount" <NaomiYount@Westat.com>
Date: 10/31120162:26:03 PM
To: "county.council@montgomerycountymd.gov" <county.council@montgomerycountymd.gov>
Cc:
Subject: Bill 42-16
Hello,
I am writing in support of the bill 42-16 which offers
tax
credits to longtime residents however I think the
clause that exempts homeowners of houses that have an assessed value of over $500,000 defeats part of that
bill. There are many longtime residents who bought when the market was very low and have lived here for a
long time, and now their dwelling is worth a lot, but they are not exactly benefiting from that increase in
housing appraisal. They don't want to move, but are suffering from high property taxes.
Please look at the increase of the housing market over 40 years and the average home value and reassess that
max value.
I am decades from qualifying for this so have no vested interest but do think this unfair for the
residents/neighbors I do know who have been here the longest. They need the tax credit just as much as the
next person. Maybe increase the assessed value to more than $800,000?
Thanks
Naomi Yount
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From: "Patrick Garvey" <garvpI75@verizon.net>
Date: 1111120166:03:02 PM
To: "county.council@montgomerycountymd.gov" <county.council@montgomerycountymd.gov>
Cc: "Councilmember.elrich@montgomerycountymd.gov"
<Councilmember.elrich@montgomerycountymd.gov>,
"Councilmember.Berliner@montgomerycountymd.gov"
<Councilmember.Berliner@montgomerycountymd.gov>
Subject: Tax Credit for long time seniors
Very good idea. Please include yearly inflation adjustments or the $500,000 maximum value will severely
limit this needed tax break. You might consider 35 years as the residential term since many retire after 35
years of working and start to be on limited fixed incomes.
If you keep 40 years as the benchmark, then you eliminate a large number of retirees who must make
decisions to relocate after retirement when fixed incomes are set and not keeping up with inflation. That
additional 5 year gap forces folks to relocate to other locations due to MoCo cost of living index.
Great idea however. Inflation should be part of the proposal. And a thorough examination of 40 yrs. versus
35 years for" long term" residents.
Patrick Garvey
5105 Saratoga Ave
Bethesda Md 20816
Pat Garvey
Sent from my iPad
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From: Floreen's Office, Councilmember [Councilmember.Floreen@montgomerycountymd.gov]
Sent:
Friday, November 04, 2016 10:37:18 AM
To: Council President
Subject:
FW: Bill 42-16 draft letter to Council
From: Joyce Siegel [mailto:joybsiegel@aol.com]
Sent: Thursday, November 03, 20164:23 PM
To: Berliner's Office, Councilmember <Councilmember.Berliner@montgomerycountymd.gov>; Eirich's Office,
Councilmember <Councilmember.Elrich@montgomerycountymd.gov>; Floreen's Office, Councilmember
<Councilmember.Floreen@montgomerycountymd.gov>; councilmemberkatz@montgomerycountymd.gov; Navarro's
Office, Councilmember <Councilmember.Navarro@montgomerycountymd.gov>; Riemer's Office, Councilmember
<Councilmember.Riemer@montgomerycountymd.gov>; Leventhal's Office, Councilmember
<Councilmember.Leventhal@montgomerycountymd.gov>
Subject: Fwd: Bill 42-16 draft letter to Council
I am opposed to Bill 42-16 for a variety of reasons. Most people who purchased their
homes 40 or more years ago have seen the value of their homes increase enormously.
Yes, some have used that equity to get second and third mortgages in order to manage
day-to-day expenses but many others are sitting on the increased equity... even lucky
enough to have money in case assisted living or nursing care is needed and/or for their
children.
My husband and I lived in our home for 46 years. The four bedroom split level, on one
quarter acre, was way too big for two people. The gardening and house maintenance were
getting too much. We sold our house to a young family and moved to a condo within a
walk of metro. Our former home was meant for a family and we were happy to see it
recycled, with the children going to the neighborhood schools. The street we used to live
on has numerous elderly widows ...one in a five bedroom split level. She can't drive. She
can't garden. She's stuck in this huge house. Is that the best use of our housing stock? I
think not.
Older people are being encouraged to age in place but for many that's not the best idea. I
have several friends who are now prisoners of their large houses. They lost their
husbands, decided to stay in their homes and now are totally trapped without the
energy... or even the health to make a positive move. They can't drive any longer and have
become totally dependent on others.
We should put our attention to providing affordable, appropriate housing for older people.
Moving to the condo was the absolutely best thing we could have done. We are active in
our new mixed age, ethnicity and income community. We enjoy the amenities ... a pool, a
walk to metro, a few social programs. We've made new friends and become very active in
the governance of the condo.
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Joyce Siegel
h
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From:
Floreen's Office, Councilmember [Councilmember.Floreen@montgomerycountymd.gov]
Sent: Thursday, November 03,20162:58:23 PM
To: Council President
Subject: FW: bill 42-16 opposed
From: Barbara Siegel [mailto:barbsiegel@verizon.net]
Sent: Thursday, November 03, 2016 2:07 PM
To: Floreen's Office, Councilmember <Councilmember.Floreen@montgomerycountymd.gov>
Subject: bill 42-16 opposed
Dear Council President Floreen,
I"m writing in opposition to bill 42-16.
Below I have included excerpts from a letter my 83 year old mother is submitting on the subject. I'm sure my
views on 'aging in place' were formed by my mother - a housing activist from way back. She always talked
about moving when they got older and that big houses should be for families.
Additionally, I don't understand why this bill is only geared to people whose homes are under $500,000. Most
people who have lived in the same home for 40 years in MoCo are likely to have homes valued over $500,000.
For example, I bought my house in 93 for $230,000 (downtown Bethesda). A few years later we put an
addition on ($110,000). My home is now worth well over $500,000. Why should we be excluded just because
we bought smart and lived without a car for several years.
I also agree with my mother that the idea of aging in place is a disservice to the elderly. It's very expensive to
live in a home. Where I can cut my own grass and do my own repairs, elderly need to hire help.
It's fine if people want to make the choice to stay in their own homes. That's up to them. I disagree with
County Council encouraging it.
There was a profound difference between the experience of my parents (see below) and my in-laws. My in-laws
stayed in their house until they had to. Within a month of moving my mother-in-law had a huge health set back
- we think because of the confusion caused by the move (my father
in
law simply couldn't take care of the house
any longer). My in-laws are living a miserable isolated existence while both of my parents are engaged,
independent, and continuing to enjoy life. The true elderly do end up isolated
in
their single family home. By
allowing them to ignore for as long as possible the unpleasant reality that 'time and tide wait for no man" they
end up waiting until it's too late. If Council wants to make a positive difference in the lives of the elderly
perhaps the better move would be to raise taxes on families that have lived in their house for more than 40 years.
Respectfully,
Barb SIegel
http://look2listen.com
Barb@10ok21isten.com
Through the process ofgraphic consultation, my clients and I use drm<.rings, colm; typography and other creative elements tofind greater
understanding and solutions in ways that are impossible with conversation alone. The amOlott ofbrain space dedicated to visual processing is
greater than that for all other sensory processing combined: this process builds on our natural inclinations to broaden our thinking and
improve performance.
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GO Item 3
January 19,2017
Worksession
MEMORANDUM
January 17,2017
TO:
FROM:
SUBJECT:
Government Operations and Fiscal Policy Committee
Amanda Mihill, Legislative AttomeyaA'0Qdult
Worksession 2:
Bill 42-16, Taxation - Property Tax Credit - Elderly Individuals
and Veterans
Bill 42-16, Taxation - Property Tax Credit - Elderly Individuals and Veterans, sponsored by Lead
Sponsor then-Council President Floreen and Co-Sponsors Councilmembers Navarro, Rice, and Katz,
was introduced on October 18, 2016. A public hearing was held on November 15 (see testimony
and correspondence on ©14-31). A Government Operations and Fiscal Policy Committee
worksession was held on December 12, 2016.
Bill 42-16 would create a property tax credit for certain elderly individuals and veterans.
Specifically, Bill 42-16 would provide a 20% county property tax credit for 5 years on an eligible
individual's home.
An
eligible individual is an individual that is:
(1)
at least 65 years old and has
lived in the same dwelling for the preceding 40 years; or (2) is at least 65 years old and is a retired
member of the United States armed forces. Finally, and eligible individual may receive a property
tax credit if the home for which they are seeking the credit is assessed at no more than $500,000.
Background
The County has a number of programs to provide
tax
relief to different subsets of the
Coun~y
populous, including programs for senior citizens and veterans. These programs include the
property tax credit for seniors of limited income (County Code §52-92), the residential real
property tax deferral for seniors of limited income (County Code §52-22), and the property tax
refund for disabled veterans and blind persons (County Code §52-23). In addition to these
programs, senior citizens and veterans may be eligible for other, more generally applicable tax
relief programs, such as the homeowners tax credit (County Code §52-85).
The County was granted the authority to institute the tax credit provided in Bill 42-16 earlier this
year via House Bill 898 (©5-6). The enabling legislation provided for specific definitions for
"eligible individual" (which are repeated in Bill 42-16), and provided for the maximum amount of
property tax credit (no more than 20% of the tax imposed) and the maximum duration of the
property tax credit (up to 5 years). The enabling legislation further allows the County to provide
for the maximum assessed value of a dwelling eligible for the tax credit and additional eligibility
criteria.
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Summary of Public Hearing Testimony and Correspondence
The Council has heard from several residents and interested individuals. Most individuals that
contacted the Council supported Bill 42-16 with amendments (©14-28). Suggested amendments
will be addressed below. Two individuals, Joyce Siegel and Barbara Siegel opposed Bill 42-16. In
their opposition letters, these individuals did not believe that the Council should encourage "aging
in place" for senior residents (©29-31). The County Executive has not taken a position on Bill
42-16.
Summary of First Committee Worksession
The Committee held a first worksession on Bill 42-16 on December 12, 2016. At that worksession,
the Committee reviewed background issues and addressed several issues that had been raised for
Committee consideration. The Committee discussed the following three issues and Council staff
noted that amendments to the state enabling legislation would be required to address these issues:
• whether eligibility of the tax credit be expanded to include retired members ofthe u.S.
Public Health Service and National Oceanic and Atmospheric Administration;
• whether eligibility for the tax credit should be limited to seniors who have lived in their
house for 40 years; and
• whether the duration of the tax credit be expanded beyond 5 years.
Issues for Committee Consideration
1.
Should the maximum assessed value
0/
a dwelling be increased?
Bill 42-16 would
limit eligibility of the tax credit to dwellings that have a maximum assessed value of $500,000.
Several residents urged the Council to increase the maximum assessed value, though they offered
different maximum values (©26-28). Resident Pat Garvey suggested including yearly inflation
adjustments to this cap (©28).
Council staff comments: Unlike the issues raised above, the state enabling legislation
allows the County the discretion to set a maximum assessed value of a dwelling or not and to
determine what the maximum assessed value should be. The Fiscal Impact Statement (©7)
estimates that the revenue loss from the amount of tax credits granted would likely be about $1.14
million per year (assuming that the maximum assessed value was $500,000.). At the first
worksession, the Committee requested additional information on the estimated fiscal impact for
various assessment values. This information is provided in the table below.
Max.
Assessed
Value
Est.
Fiscal
Impact
$500,000
$550,000
$600,000
$650,000
$700,000
$750,000
$1,138,420
$1,282,060
$1,425,699
$1,364,413
$1,492,289
$1,620,165
2
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In determining whether to raise the maximum assessed value cap, Committee members
must weigh the benefits to eligible residents against the decline in revenue that is likely to result
from increasing the cap.
2. Other recommended amendments.
Bill 42-16 requires that a property owner submit an
application to the Director on or before a date the Director sets. The County Attorney's office
recommends that the law establish the submission deadline and recommended April 1. Council
staff recommendation: amend Bill 42-16 to require a property owner to submit an application by
April 1 each year that the individual wants to receive the credit.
This packet contains:
Bill 42-16
Legislative Request Report
State enabling legislation
Fiscal and Economic Impact statements
Select testimony and written correspondence
Circle
#
1
4
5
7
14
F:\LA w\BILLS\1642 Tax Credit For Elderly-Vet\GO Memo 2.Docx
3
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Bill No.
42-16
Concerning: Taxation - Property Tax
Credit - Elderly Individuals and
Veterans
Revised: 10/13/2016
Draft No. 4
Introduced:
October 18,2016
Expires:
April 18, 2018
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:
---'..!.No~n~e'___
_ _ _ _ __
ChI _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President Floreen
Co-Sponsors: Councilmembers Navarro, Rice, and Katz
AN
ACT to:
(1)
(2)
(3)
create a property
tax
credit for certain elderly individuals and veterans;
provide for the eligibility for the property
tax
credit; and
generally amend the law relating to property
tax
credits.
By adding
Montgomery County Code
Chapter 52, Taxation
Section 52-110, Property
tax
credit - elderly individuals and veterans
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.
Deleted from existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves thefollowing Act:
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BILL
No. 42-16
1
2
Sec.
I.
Section"
52-110
is added as follows:
52-110.
Property tax credit
=
elderly individuals and veterans.
3
4
5
W
Definitions.
In
this Section, the following words have the meanings
indicated:
Department
means the Department of Finance.
Director
means the Director of the Department or the Director's
designee.
6
7
8
9
10
11
Dwelling
has the same meaning as in §9-105 ofthe Tax-Property Article
of the Maryland Code.
(Q)
Credit.
As authorized
Qy
§9-257 of the Tax-Property Article of the
Maryland Code, an eligible individual may receive
~
credit against the
12
13
14
County property
tax
imposed on the dwelling of an eligible individual.
(£)
Eligibility.
An individual is eligible to receive
~
property
tax
credit if:
ill
the individual is at least 65 years old and:
CA)
has lived in the same dwelling for at least the preceding 40
years; or
15
16
17
ill}
is
~
retired member ofthe United States anned forces; and
18
19
20
ill
@
the dwelling for which
~
property
tax
credit is sought has
~
maximum assessed value of $500,000.
Amount and duration
Q[
credit.
21
22
ill
ill
The credit allowed under this Section is 20% of the county
property tax imposed on the dwelling.
The credit must be granted each year for
l
years if the individual
remains eligible for the credit.
23
24
o
f:\law\bills\1642 tax credit for elderty-vet\bill4.docx
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BILL No. 42-16
25
1iU
Application.
26
27
ill
A property owner must submit an application to the Director on or
before the date that the Director sets for each year that the
individual remains eligible for the credit.
28
29
30
31
32
33
ill
An application must:
(A)
be on the form that the Director requires; and
demonstrate that the taxpayer is entitled to the credit.
ill)
ill
Approved:
Regulations.
The County Executive may issue regulations under Method
2
-
this tax
-
to administer
- -
credit.
34
35
Roger Berliner, President, County Council
36
Approved:
Date
37
Isiah Leggett, County Executive
38
This is a correct copy ofCouncil action.
Date
39
Linda M. Lauer, Clerk ofthe Council
Date
-3-
f:\law\bills\1642
tax
credit for elderiy-vet\bill 4.docx
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LEGISLATIVE REQUEST REPORT
Bill 42-16
Taxation
-
Property Tax Credit
-
Elderly Individuals and Veterans
DESCRIPTION:
Bill 42-16 would create a property tax credit for certain elderly
individuals and veterans and provide for the eligibility for the property
tax credit.
During the 2016 legislative session, the General Assembly enacted,
and the Governor signed, House Bill 898 which authorized local
governments to provide for a property tax credit for certain elderly
individuals and veterans.
To implement authority granted by the State.
Finance
To be requested.
To be requested.
To be requested.
To be researched.
Amanda Mihill, Legislative Attorney, 240-777-7815
Taxes and credits apply countywide
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IlVIPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
NI
A
F:\LAW\BILLS\1642 Tax Credit For Elderly-Vet\LRR.Docx
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LAWRENCE
J.
HOGAN,
JR.,
Governor
Chapter 498
Ch.498
(House Bill 898)
AN ACT concerning
Property Tax Credit - Elderly Individuals and Veterans
FOR the purpose of authorizing the Mayor and City Council of Baltimore City and the
governing body of a county or municipal corporation to provide a property tax credit
against the county or municipal corporation property tax imposed on the dwelling of
certain individuals who are elderly or veterans; providing for the amount and
duration of the tax credit; authorizing the Mayor and City Council of Baltimore City
and the governing body of a county or municipal corporation to provide for
c~rtain
matters relating to the tax credit; defining certain terms; providing for the
application of this Act; and generally relating to a property tax credit for certain
individuals who are elderly or veterans.
BY adding to
Article - Tax - Property
Section 9-257
Annotated Code of Maryland
(2012 Replacement Volume and 2015 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article - Tax - Property
9-257.
(A)
(1)
INDICATED.
IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
(2)
TITLE;
"DWELLING" HAS THE MEANING STATED IN
§
9-105
OF THIS
(3)
"ELIGIBLE INDIVIDUAL" MEANS:
(I)
AN INDIVIDUAL WHO IS AT LEAST
65
YEARS OLD AND HAS
LIVED IN THE SAME DWELLING FOR AT LEAST THE PRECEDING
40
YEARS; OR
(II) AN INDIVIDUAL WHO IS AT LEAST
65
YEARS OLD AND IS A
RETIRED MEMBER OF THE ARMED FORCES OF THE UNITED STATES.
-1­
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Ch.498
2016 LAWS OF MARYLAND
(B)
THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY GRANT, BY LAW,
A PROPERTY TAX CREDIT UNDER THIS SECTION AGAINST THE COUNTY OR
MUNICIPAL CORPORATION PROPERTY TAX IMPOSED ON THE DWELLING OF AN
ELIGIBLE INDIVIDUAL.
(C)
THE PROPERTY TAX CREDIT ALLOWED UNDER THIS SECTION MAY:
NOT EXCEED
20%
OF THE COUNTY OR MUNICIPAL CORPORATION
PROPERTY TAX IMPOSED ON THE PROPERTY; AND
(1)
(2)
BE GRANTED FOR A PERIOD OF UP TO
5
YEARS.
(D)
THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY PROVIDE, BY
LAW, FOR:
THE MAXIMUM ASSESSED VALUE OF A DWELLING THAT IS
ELIGIBLE FOR THE TAX CREDIT UNDER THIS SECTION;
(1)
(2)
THIS SECTION;
ADDITIONAL ELIGIBILITY CRITERIA FOR THE TAX CREDIT UNDER
REGULATIONS AND PROCEDURES FOR THE APPLICATION AND
UNIFORM PROCESSING OF REQUESTS FOR THE TAX CREDIT; AND
ANY OTHER PROVISION NECESSARY TO CARRY OUT THE TAX
CREDIT UNDER THIS SECTION.
(3)
(4)
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June
1, 2016, and shall be applicable to all taxable years beginning after June 30, 2016.
Approved by the Governor, May 10, 2016.
-2­
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ROCKVILLE, MARYLAND
MEMORANDUM
November 8, 2016
TO:
Nancy Floreen, President, County Council
FROM:
SUBJECT:
Jennifer A.
Office
Budget
Alexandre
A.~i~'a;l)lrector.
Department ofFmance
FEIS for Bill 42-16, Taxation -Property Ta.x Credit·- Elderly Individuals and
Veterans
H~.~~~or.
ofManagefit~ntand
Plea..<.;e find attached the fiscal and economic
impact
statements
for the
above­
reierenced legislations.
JAH:fz
cc;
BOn}lie
Kirkland.
Assistant
Chief Administrative Officer
Lisa
Austin, Offices
of
the County Executive
Joy
Nurmi, Special Assistant
to
the County Executive
Patrick Lacefield. Director, Public
Information
Office
David Piatt, Department
of
Fit'lance
Dennis Hetman, Department of Finance
Jane Mukira, Office of Management and Budget
Naeem
Mia~
OtJice of Management and Budget
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Fiscal Impact Statement
DiU 42-i 6, Taxation - Property Tax Credit - Elderly Individuals and Veterans
1. Legislative Summary
Bill 42-16 provides a property
tax
credit for certain property o\\-ners who are at least 65
years of
age
and either,
(1)
have resided afthe
same
property for at
least
40 years, or
(2)
are retired from the
t.nilitary~
The tax credit is available to all taxpayers "wo meet these
requirements, if
their
property's assessed value
is
no mote than $500,000.
2.
An
estimate of changes
in
County
~venu~
and expenditures regardless of whether
the revenUeS or expenditures are assumed in the recommended or approved budget.
Includes source of information, assumptions, aud methodologies used.
The estimated amount of the credit granted in the fIrst year
is
approximately
$1.14
million, which is not currently budgeted in the FYI7 approved budget.
The DepartInentofFinance.(Department) notes that there are
·189
property
tax
accOunts
in
the County
that
have been owned by the same entity for
at
least 40 years. The
Commission on Veterans Affairs provided
the
Department data that
was
used
to
estimate
that there are approximately 1,964 County residents who are at least 65 years of age and
are
also retired
from the
U.S.
Anned Forces.
The
Department notes
that this
program
will
likely have more eligible applicants
than
all
other County-administered property
tax
credits combined. Therefore, the Department
believes
that it
will
n~
one additional
full~time
tax
credit administrator
(Grade 18
to
23)
to handle this additional workload.
3.
Revenue and expenditure estimates covering
at
least
the
next
6
fIScal
years.
The amount of
tax
credits granted will likely be approJ(imately
$
L 14 million per year
over the next 6 years. An additional expenditure
fot
a new ad:ministrative position v"ill
range from $74,000 to $94,000 per year, inCluding benefits, depending on the grade of
the
position.
.
.
The re'V-enue
loss would
be
approximately
$6.8 million
over
six
years,
and
expenditures
would be between $4#,000 and
$564,000
over six years. Expenditures
are
primarily
personnel costs for administration of
the
tax
credits. The Department ofFina:nce currently
administers
18 tax
credit programs
and
two
tax
deferral programs with only one
dedicated position. The scope and impact of this new
tax
¢redit program, though only
incremental on an
on~going
basis, is such
that additional dedicated resources
are
required
to
continue
to
effectively and efficiently administer these programs.
4.
An
aduarial analysis through the entire amortization period for each bill that would
affect retiree pension or
group
insurance
costs.
Not applicable.
5. An estimate of
expenditures related
to County's information rechDology (IT)
systems, including Enterprise Resource Planning (ERP) systems.
Page 1
of~
®
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Fiscal Impact Statement
Bill 42-16, Taxation - Property Tax Credit - Elderly Individuals and Veterans
Not applicable.
6. Later actions that may affect
future
revenue and expenditures
if
the
bill
authorizes
future spending.
Not applicable.
7.
An
estimate of the staff time needed to implement the bill.
It is estimated that one additional full-time position is needed to properly implement the
tax
credit program.
.
The Department of Finance currently administers 18
tax
credit programs and two tax
deferral programs with only one dedicated position. The scope
and
impact ofthis new
tax
credit program, though only incremental on
an
on-going
basis,
is
such
that
additional
dedicated resources are needed to continue
to
effectively and efficiently administer these
programs.
Initial implementation should take approximately 60 hours and includes developing
informational material for print
and
for posting On
Courtty
websites to explain the
program, including the origip. of the prognim. the applicatiOn process. and the timing of
the entire program (the estimated schedule
to
get from the receipt ofan application
by
the
DepartmehtofFinance
to
the actual posting of
the
taxcredit
to
the
tax
bill). Initial
implementation includes setting
up
internaltrackillg of applications and
the
credits
in
a
MS
Excel
spreadsheet,
to begin
the
program. It includes working
with
Finance-IT,
and
possiply DTS,
to
get
the initial website(s)
rtu:iJ:iiIig.
It
also includes training Treasury
Division staff on what to do when they receive applications in the mail, or are asked
questions by customers at our two service counters. Initial implementation
also
includes
making paper copies ofapplication packets which
will
include
the
infonnational material.
After implementation,
initial
administration of the program entails accepting applications,
reviewing
them,
making a decision, calculating the
tax
credits (initially in
MS
Excel, but
potentially in
a
stand-alone application developed by Finance-IT or DTS)
and
then
preparing files of
tax
credits for processing
in
the
tax
system. The number of applications
received
in
the first year will likely be close
to
2,000, ifnot higher. This will require full­
time
work for most of the year.
In .addition
to
the administrative work:,
the
administrator
will
work with Finance-IT or
DTS
(or both) as the functional lead for developing a
software application specific to
this tax
credit, because of the number ofcredits that
\\;11
likely
be
granted.
It
is not possible
to
determine
if
a new software application is
necessary, at this time.
Page 2
of4­
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FiscaHmpact Statement
Bm
:;1·16,
Taxation - Pr.operty Tax Credit'- Elderly Individuals and Vete.-ans
After the first year, ongoing administration entails accepting applications, revie\\i.ng
them, making a decision, calculating the
tax
credits and then preparing files of
tax
credits
for processing in the ta.x system. For example:
.
a. For taxpayers who have already received the credit
in
the previous year, ongoing
admitristration entails certifYing
that
the owner of record who received the tax
credit
in
the previous year remains the owner of record;
calcul~ngthe
tax
credit
for the new year, and preparing files oftax credits for processing in the
tax
system.
b.
The administrative workload after the first year is expected to be lower, but the
workload
v.i.1l
be more than current
staffhave
the
ability
to
provide, without
degradation of other cu....tomer service related work, as noted above.
8. An explanati.on .of how the additi.on .of new staff resp.onsibilities would affect .other
duties.
If no additional staff are
granted,
these tax credits will
be
scheduled to
be made
after all
other credits are given, and other work, such as
tax
refunds, will also be delayed in order
to make certain that all of the tax credits are provided in as timely a manner
a..fi
possible.
9. An estimate.of costs when an additi.onal appr.opriati.on
is
needed.
Not applicable.
10. A descripti.on of any variable that could affect revenue and cost estimates.
The
number of eligible applicants may be higher or lower
than
estimated. There may
be
a
number of applications that
are ineligible
because
their
property value
is over $500,000
or increases
to
over $500,000
over time.
U. Ranges of revenue .or expenditures that are uncertain or difficult to project.
See above.
12.
If
a bill is
likely
t.o have no fiscal impact, why that
is
the case.
Not applicable.
13. Other fiscal impacts .or comments.
Not applicable.
Page 3
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Fiscal Impact Statement
,
Bill 42-16, Taxation - Property Tax Credit - Elderly Individuals and Veterans
14. The following contributed to and concurred with this analysis:
Mike Coveyou, David Platt, Dennis Hetman, Finance
Jane
Mukira, OMB;
ok
!
Page4of4
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Economic
Impact Statement
Bill 4246
Taxation -
Property
Tax
Credit -
Elderly Indil'iduals and
Veterans
Background:
Bill 42-16 would create a property
tax.
credit for certain elderly individuals and veterans and
provide for the eligibility
for
the property
tax
credit. During the
2016
legislative session, the
General Assembly
enacted,
and
the
Governor signed, House Bill 898 which authorized local
governments
to
provide for a property
tax
credit for certain elderly individuals aqd veterans.
An
individual would be eligible
to
receive
a
property
tax
credit if:
1.)
the
individual
is
at least
65
years old and: (a) has
lived
in
the same dwelling for
at
least the preceding 40 Year's; or (b)
is a
retired member of the United States armed forces and 2.) the dwelling fbt which a property tax
credit is sought has
amaximwn assessed
value
of
$500,000.
1. The sources
of
information, assumptions, and methodologies
used.
U.S.
Census Bureau, 2015 American Community
Survey
Commission of Veterans Affairs, 2015 report
The Department of
Finance
has
ton;nulated an estimate of
the annual
property
tax
credit as a
result of
the
Bill assuming a median taxable assessmcnt base of$325,000 for properties valued
less
than
$500,000, a real propcrty
tax
rate
of
$1.0264, and an income
taX
offset credit of $692.
There are
an
estimated 189 property
tax
accounts in
the
County
that
have. been
owned
by the
same entity for at least
40
years. The Commission on Veterans Affairs provided
data
that
was
used to estimate
that
there
are
approximately 1.964 men
and
women
in
the County who are at
least 65 years of age and who are also retired from the U.S. Armed Forces.
2. A
description
of any variable that
could
affect the
economic:
impad estimates.
Given the assumt'Ci totals, the Department of Finance estimates the amount of credit granted in
the first
year to be approximately
$1.14
million:
65+ and 40
years
$325,000
$1.0264
$3,335.80
($692.00)
1
$2,643.80
I
20.00%
j
$528.76
1891
Retired
Military
$325.000
$1.0264 ,
Median
Taxable
Assessment at
or below
$500,000
Weighted Real
Property
Tax
Rate: FY2017
I
Income Tax Offset (Tax credit)
Estimated Tax Bill
Credit Bill
42-16:
Section S2-110(d)(1)
Amount of Credit Allowed
under
Bi1142-16
Number of estimated applicants
Estimate loss
of
Property Tax Revenues
I
I
I
!
$99,9361
$3,335.80
!
($6n.OO)
$2,643.80
20.00%
$528.76
1,964
$1,038,485
TOTAL ESTIMATED lOSS
Page 1
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Economic Impact Statement
BiU 42-16 Taxation - Property Tax Credit - Elderly Individuals and Veterans
Variables that could affect the economic
impact
estimate include the number of retire4 military
and
individuals over the
age
of
65 that
have lived
in
the same
dwelling for
OYer
40
years.
There
is
also
the
potential
for
overlap
between
the
two
groups that
coilld
slightly
reduce estimates.
3. The Bill's positive or negative
effect~
if
any on employment, spending, sa\ings,
investment, incomes, and property values
in
the County.
Based
on
the asswnptions and calculations, Bill 42-16 could
have
a
de minimis
positive
economic impact on the personal income for
those
individuals
over the
age of 65 and retired
military that qualify for the credit. On a per household basis the credit equates to approximately
$528 per
year
for
those
eligible. On
amacroecon()mic
level, the Bill Will not
dramatically
alter
employment,spending, or
property values
in any measurable way.
4.
If
a Bill is likely to have no economic impact, why is that the case?
This
legislation
will have an
economic
impact. Seeparagrdph #3
5. The following contributed to or concurred with this analysis:
David Platt)
Dennis
Hetman,
and Rob
Hagedoorn,
Finance.
Date
Page 2 of2
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Monigl?lTIeryCou,nty
Chapter
P.O. 'Box 34127
West
Betlie$,
·.Mar)'lqiid
·2Q821~0127
Tesfirnony
re,garding
Cour\cilBil142-16
November 15, 20
16
Good
qfterno()h
Pn:;lsident
Fl6reei!
boprnembet$
of
th~C:qliD:tvC6~ncil,1
ortl
Dqvici
H.
Peter~9h
<Jnq
I.
qryl
h~te
lqdbYQnbehallof
the
M9ntgOrn,~ry
CQ~nty
Chopter;
the
Ipcol offiliote
of
lh.~
notiQnot MiUtoryOfficeTS
As~ociotiQ.n
of
America
(M0AA1.
MQAA ond.
ifsoffiliated
chopters
ore
non-paniSQH
adVOcates
forour Nation's
seven
unIformed
services..·
.
ThisbiU
flowsftom
State Ie gisla
fion
enactededrlierthisyear
(PlB898),
providing aUfhorlty
fOrd
loedl
propertyfdx credit .16rcertdln
lndividuo'ls, and
specifying cerlbir'lC6nditidflS for
ellglOiH1y:
In
general;
my
cl1QPterm~h'}ber$
sGppprfthe 0c:f9ptiOriollhis
legjslotipnby
Morjtg6rneryGotJnty~
We
qat
hOWeYer~
hqve q
conperoapoljt ooe qspectof
the
Pill's
provi$ions~qnd w~se~~
your
qssistan~e
andSlJPport forootqiningo
modification JOqqjust
its seGtibnon
eligjbiHty~
Our concern regardlng COlJncilBill 42..16is bhlywItn tneiiEligibillty'i
provision os drafted.
Secti611~2'-110(cJfl)lB)i
pr6vlqes
eligibility fo
rE?H'r~d
members'ot-the "armed
f¢r¢es,
"woo
al~()
meet
theqge
requirement.
lrUhe
$nopling
State
leQislqtiqn,
if
descripedds" Ao
ACI¢on<.:~rrijri9.Prop¢rty
Tox
Credit-., Elderly lndivk:fuals
and
Veterans.
n
Tbereis sometbinQof
0.
disconnect
in
this formulation. Maryland hasadefinftionof
"veteron
u
used
In
Qther]egislqtion
thafis
more
inclv.slve.
encompassing
oJlseven
"uniformed services,"nofjusf
the
five
'iormedservices~i'ltls
my
chapter's
respectful
request
thatourCoun1y
Council recqgtHze.
that
anuhlntended
,discrepancy
may
wen
6x1stih
the sfate
H;~gislatioh~
whIch
WoUld
heed a
technical
correction
in the'
comIng General
Assernplysession~ W~oskthClt
the
Council
bring
this
c:if¢urnstqn¢$
t9tne
att~ntiQn()f th~
CQunty's
House
and
S~nat~ c:fel~gqtionsi
portk;l.!I.qrfylhosewhe
serve
on
th~J'ous.e
Woys
ond.MeonsCommittee,
oH of
whom
w~reQO~SPQnsQrs.
is
of the House
b.ilL
.
Ihmy Original readjngof theenabllhgStatelegislatior1,
my
assumption
wQsfhatIf
appeared
to includE? kmguageproviding
locaijLJrisdk:tions
with
d.
certoin
.orn()lJnt
of
discreti()fl
in
,s~ttingddqiol'iprial"eJigibilit:Y c:rjt~tiot
Hhq$t
SectiQn9'-2tJ7 of
the
Tox-Pr9perty
A.rti(JI$,
Port
P
sets
forth
"Th¢... gov$h)jng
PQdy
ofa
county., •may
provldeiPyJaw;
for: {2J oddiijona1eligibiliiy criteria
fqrjhe
tqx.
@
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credrfunder this.section."
I
was informed
by
your
legi~ative(]ttorneyjyst
rec~ritlySVcHQn
QSSlJmption
was.incorrect
and
that
gnlyo modificotiqn
tothe
enoblltig
l~gisl(]fIoncm.)lq prodLJc~the
<>vtcorne
my
chaptersee~s"
1served ,in two of my
country's
uniforms
over
a
38
year
Cdreer.
I
cah
see
no
justified
explonctiQHTOr limiting
eligibility in this legislatioh, bthetthcln.
perhaps
d
draftitlgoversight
by
the
GenerclAssembly.Members
Qf
the
Commissioned
Corps
of
the
United
States
PubliC
Hedlth
SerYk;e
drid
the
COh1miS$jqn~d<;orpsof
the
National Oceahlcand
AtrT19Spheric
Aqminist(otion
Jake
th~sQme
commissioning
oath
before
the
flag
of our
copntry,as
do
mernb~rs
ofthe
armed
forc~s.
For their
seNlce
tpQur Nation, they earn .andreceive
the
same
pay,
entitlements,
oodbenefifs as
those
eqrned
by
members
of the
other
services.
They are
on
duty
24/71365,
unless
they
are
on
leave~
ond
thayere,
always
$.I,JbJect
to
orders
to
any
assig.ned duty, and to .recall.
DraWing
011
my
oWn
career as
an
example,
during
my
two
late-career sea
duty
toursiri command
()f
NOAA
ships,
1was subject to
the
sarne
dccQuntabiiHies;
and
responsfqilities
ds
NavYdndCodstGu.ard
officers·
in
GOrnrY1dnd>.Whije
more could pe.sqid
if
time
permitt$d, rthink
ftlis
gives
yqu
a
$erise'thot
a
limitqtiQnon
eJigipi!lty
i~
qqite
.'
.
inequitable.;, that a technicql
correction
is
warranted.
One
last
fact
that
1
shar~
with·You is
that
both
the
PHS
Corps
and
the
NOAA Corps
have
their
service
headquarters
right
here
in Monfgomery
County,
PHS in .Rockvilleand NOAA
in5i1ver
Spring.
.
Thdnk.youfor
yoUr
attention
to the MOAAMontgomeW CovntYChapter'$
concerns
regarqing
this
legislation:..
It
is our
hope
that you will view these
cqnstituent
comments
in the
h~lpful
spirit
in whiCh
they are
offerecj
and
intended.
(/.
~J. ~t
1d£U.4-.--1__
Cqptqin Dovid.H.
PeterSOI"),
NOAA
(Ret]
President
Montgomery
County
Chapter
c/o 7612
Anamos.o
Way
Derwood, Maryland 20855
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Commissioned Officers Association
of the U.S. Public Health Service
November 10,2016
Montgomery County Council
100 Maryland .Avenue
Rockville. MD 20850
Dear Council Members:
Tam writing
to
you about BiJ142-16, which would provide tax reliefto certain elderly individuals and
retired veterans.
I
am Executive Director ofthe Commissioned Officers AssOciation ofthe U.S. Public Health
Service (USPHS), which has app-oximately 1100 members in Montgomery County. Of
these
perhaps
200
are
retired from the USPHS and might be eligible for this
tax
relief. Including the[JJ.
in
your legislation could result,
as
I
am sure you understand. in more officers remaining in Montgomery County after they retire.
The problem that some have identified it is that the Maryland law that
is
the basis for the County
CounciJ's action uses the term "armed forces" to define those eligible for this
tax
relief-
I
don't believe that
this
is actually a problem,
as
Maryland Jaw, Chapter 553, enacted
in
2007, includes U.S. Public Health Service
officers and officers of the National Oceanic and Atmospheric Administration
as
being members of a "military
service" for purposes oftuation in Maryland. (Copy attached). We believe that "armed forces" and
"'military
services"
are
totally syuonymous terms, and that there is therefore no reason
to
deny PHS and NOAA officers
the benefits of this proposed legislation. Federal law (42 U.S.Code 213 (d» states that, "Active service of
commissioned officcrs ofthe [U.S. Public Health] Service shall
be
deemed to
be
active military service in the
Armed Forces of tile United States ...... reinforcing our contention that the
terms
"armed forces" and "military
services" are synonymous. PHS officers
are
also recognized
as
"veterans" under this statutory provision and are
entitled to all the privileges thereof. (Copy ofstatute attached),
We therefore
urge
you as members of the Montgomery County Council to include
both
PHS and NOAA
officers in your eligibility criteria for
tax
relief. Their numbers are small, but
we
ask you to consider what they
contribute to Montgomery County and to our country through their work at the
FDA, NIH.
and other locations
in Montgomery County.
Please do not hesitate to contact me if you need additional information about the U.S. Public health
Service and its status under Maryland law.
Sincerely.
James
T.
Currie
Colonel. USA (Ret),
Ph.D.
Executive Director
820 I Corporate Drive.
Suite 1170.
Landover, Maryland
20785 • (30
I)
731·90&0 •
FAX (JO I) 731-9084
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MARTIN O'MALLEY. Governor
Ch.553
CHAPTER 553
(House Bill 392)
AN
ACT concerning
Income Tax - Subtraction Modification -
Military
Retirement Income for
Commissioned
Officers
FOR the purpose of altering a certain subtraction modification under the State income
tax
for certain military retirement income to include
certain
individuals;
defining certain terms; providing for
the
application of this
Act;
and generally
relating
to
the State income _ taxation of certain retirement income.
BY
repealing and reenacting, without amendments,
Article - Tax - General
Section 10-207(a)
Annotated Code of Maryland
(2004 Replacement Volume and
2006
Supplement)
BY
repealing
and reenacting, with amendments,
Article - Tax - General
Section 10-207(q)
Annotated Code of Maryland
(2004 Replacement Volume and
2006
Supplement)
SECTION
1.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND.
That the
Laws
of Maryland read
as
follows:
Article -
Tax. -
General
10-207.
(a)
To the extent included in federal adjusted
gross
income. the amounts
under this section are subtracted from the federal adjusted gross income of a resident
to detennine Maryland adjusted gross income. .
(q)
(1)
(i)
In this subsection the following words have the
meanings
indicated.
(ii)
"Military
service" means:
-1­
@
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Ch. 553
2007 LAWS OF MARYLAND
induction into the armed forces of
the
United
States
for training and service under the Selective Training and Service Act of 1940 or a
subsequent act of a similar nature;
2.
forces of the United States;
3.
forces of the United States;
4.
membership in a reserve component
of
the armed
1.
membership
in
an active component of the armed
membership
in
the Maryland National Guard; or