GO Item 2
February 16,2017
Worksession 3
MEMORANDUM
February 14,2017
TO:
FROM:
SUBJECT:
Government Operations and Fiscal Policy Committee
\
(\
J"'­
r
Amanda Mihill, Legislative AttomeycAWlk"Ul
Worksession 3: 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 ©14-33). Government Operations and Fiscal Policy Committee
worksessions were held on December 12,2016 and again on January 19, 2017.
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 ofthe United States armed forces. Finally, and eligible individual may receive a property
tax credit ifthe 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 County
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 defmitions 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.
 PDF to HTML - Convert PDF files to HTML files
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, 32-33). 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 Prior Committee Worksessions
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 of the 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.
The Committee held a second worksession on Bi1l42-16 on January 19,2017. At that worksession,
the Committee discussed what the maximum assessed value of a dwelling should be in order for a
resident to be eligible for the credit. Councilmember Riemer preferred that the maximum assessed
value be $500,000 while Councilmember Katz preferred that the maximum assessed value be
$650,000. Councilmember Navarro was unable to attend the worksession and Councilmembers
Riemer and Katz requested that Council staff inquire with her as to what her position was. After
the worksession, Councilmember Riemer requested additional fiscal impact estimates, which are
shown in the issues below. In addition to this issue, Councilmembers Riemer and Katz both
recommended that the legislation be amended to require a property owner to submit an application
by April 1 each year that the individual wants to receive the credit (©3, lines 26-28).
Issue for Committee Consideration
Should the maximum assessed value
0/
a dwelling be increased?
Bi1l42-16 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:
The state enabling legislation allows the County the discretion
to set a maximum assessed value ofa 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
2
 PDF to HTML - Convert PDF files to HTML files
infonnation on the estimated fiscal impact for various assessment values. This infonnation is
provided in the table below.
Max.
Assessed
Value
Est.
Fiscal
Impact
$400,000
$851,141
$450,000
$500,000
$1,138,420
$550,000
$1,282,060
$600,000
$1,425,699
$650,000
$1,364,413
$700,000
$1,492,289
$750,000
$1,620,165
$994,781
After the second worksession, Councilmember Riemer requested additional fiscal
infonnation if the bill were amended to require different maximum assessed values. This
infonnation is provided in the table below.
Max. Assessed Va1ue­
Elderly
Max. Assessed Va1ue­
Veteran
Est. Fiscal Impact
$650,000
$500,000
$1,014,462
$650,000
$400,000
$781,161
In detennining 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.
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:\LAW\BILLS\l642 Tax Credit For Elderly-Vet\GO Memo 3.Docx
3
 PDF to HTML - Convert PDF files to HTML files
Bill No.
42-16
Concerning: Taxation - Prooertv Tax
Credit - Elderly Individuals and
Veterans
Revised:
2113/2017
Draft No. 5
Introduced:
October 18,2016
April 18, 2018
Expires:
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: ---'-!.N:=::.:on.!!:e:.........-_ _ _ _ __
Ch. _ _, 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 the following Act:
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
42-16
1
Sec.
I.
Section 52-110 is added as follows:
52-110. Property tax credit elderly individuals and veterans.
(ill
Definitions.
In
this Section, the following words have the meanings
2
3
=
4
indicated:
Department
means the Department of Finance.
Director
means the Director of the Department or the Director's
5
6
7
8
designee.
Dwelling
has the same meaning as in §9-105 of the Tax-Property Article
9
10
11
of the Maryland Code.
®
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
15
16
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:
(A)
has lived in the same dwelling for at least the preceding 40
years; or
17
18
m1
ill
@
is
~
retired member ofthe United States armed forces; and
~
the dwelling for which
property
tax
credit is sought has
~
19
20
maximum assessed value of $500,000.
Amount and duration
Q[
credit.
21
ill
ill
The credit allowed under this Section is 20% of the [[county]]
County property
tax
imposed on the dwelling.
The credit must be granted each year for
~
years if the individual
remains eligible for the credit.
22
23
24
~
~;
f:\law\bills\1642 tax credtt for elderly-vet\bill 5.docx
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
42-16
25
W
Application.
26
27
28
ill
A property owner must submit an application to the Director on or
before [[the date that the Director sets for]] April 1 before each tax
year that the individual remains eligible for the credit.
29
30
31
32
33
ill
An application must:
CA)
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.
to administer this tax credit.
34
35
Roger Berliner, President, County Council
Date
36
Approved:
37
Isiah Leggett, County Executive
Date
38
This is a correct copy ofCouncil action.
39
Linda M. Lauer, Clerk ofthe Council
Date
f:\law\bills\1642
tax
credit for elderty-vet\bill S.docx
 PDF to HTML - Convert PDF files to HTML files
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 IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIEN CE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
N/A
F:\LAW\BILLS\1642 Tax Credit For Elderly-Vet\LRR.Docx
 PDF to HTML - Convert PDF files to HTML files
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
 PDF to HTML - Convert PDF files to HTML files
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
 PDF to HTML - Convert PDF files to HTML files
ROCKVILLE,?o.fARYLAND
MEMORANDUM
November 8, 2016
TO:
FROM:
SUBJECT:
Nancy Floreen, President, County Council
Jennifer A. H..
Offi.lce
and Budget
Alexandre
A.~~~~lrector,
Department ofFmance
PElS for Bill 42-16, Taxation ­ Property
Tax
Credit~
Elderly Individuals and
Veterans
~~~r.
ofManagem~tlt
Please find attached the fiscal and economic impact statements for the above-
referenced legislations.
.
JAH:fz
cc: Bonnie Kirkland, Assistant Chief Administrative Officer
Lisa Austin, Offices of
the County Executive
Joy
Nurmi, Special Assistant to
the
County Executive
Patrick Lacefield. Director, Public Information Office
D~lVid
Platt, Department of Finance
Dennis Hetman, Department of Finance
Jane Mukira, Office
of Management and
Budget
Nacem Mia. Otlice of Management and Budget
 PDF to HTML - Convert PDF files to HTML files
Fiscal Impact Statement
Bill 42-16, Taxation - Property Tax Credit - Elderly Indniduals and Veterans
1. Legislative Summary
Bill 42-16 provides a property
tax
credit for certain property owners who are at least 65
years of
age and
either.
(1)
have resided at
the sa:tnc property
for at
least 40
years,
or
(2)
are retired from the
military;
The
tax
credit is available
to
all taxpayers who meet these
requirements, if
their
property's assessed value is no more than $500,00().
2.
An
estimate of changes in County revenues and.e:xpendituresregardless ofwhether
the revenueS or expenditures are assumed
in
the recommended or approved budget.
Includes source ofinformation, assumptions, and methodologies
used.
The estimated amount of the credit
granted
in
the
fIrst year is approximately $1.14
million,
which is
not
currently budgeted in the FY17
approved
budget.
The Department ofFinance. (Depart:ment) notes
that
there are 189 property
tax
accolints
in
the County that have been owned
by
the same entity for
at
least
40yeaI'$.
The
Commission on Veterans Affairs
provided
the
Department data
that
was
used
to
estimate
that there are approximately 1,964 CoUilty residents who are
at
least 65
years
of age and
are
also retired
from
the
U.S.
Armed 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
need one additional full-time
taX
credit adtninistrator
(Grade
18
to
23)
to handle this additional workload.
3.
Revenue and eXpenditure estimates covering
at
least
the BeJ:t
6
fiscaly~rs.
The amount of
tax
credits
granted
will likely
be
approximately
$
L 14
million
pet
year
over the next 6 years. An additional expenditure for a new administrative position will
range from
$74,000
to
$94,000 per
year, including benefits, depending
on
the grade of
the position.
..
The revenue loss would
be
approxiinately
$6.8 million over
six
years,
and
expenditures
would
be
between
$444,000 and $564,000
over six years. Expenditures are
primarily
personnel
costs for
administration
of the
tax
credits. The
Pepartment
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
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 technology (IT)
systems. including E.nterprise Resource Planning (ERP) systems.
Page
1
of~
 PDF to HTML - Convert PDF files to HTML files
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 ofFinance
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 incrernentalon 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 approximatdy60 hours and includes developing
informational
materi~
for print and for posting on County
web
sites to explain the
program, including the origin. of the program. the application process,and the timing of
the entire program
(the
estimated schedule toge! from the receipt ofan application
by
the
Department of Finance to the actual posting of the taxcredit
to
the
tax
bill).
lnitial
implementation includes Setting
up
internal
tracking
of
application.~
and
the
credits ina
MS
Excel spreadsheet, to begin the program. It includes working
with
Finance.,.IT.
and
possibly DTS,
to
get the initial website(s)rurtning.
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 colUlters. Initial implementation also
includes
making paper copies ofapplication packets which will include the informational 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~a1one
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 iathe first year will likely be close
to
2,000, ifnot higher. This v.ill require full­
time work for most
of
the
year.
In
addition to the administI'1ltive work,
t;he
administrator
\\>;11
work with
Finance-IT
or DTS
(Or
both)
as the
functional lead for developing
a
software application specific to this
tax
credit, because ofthe number ofcredits that
~ill
likely be granted.
It
is not possible
to
detenmne
if
a new softvvate application is
necessary,
at
this time.
Page
2
of-4­
 PDF to HTML - Convert PDF files to HTML files
"
Fiscal Impact Statement
Bm~1-16,
Taxation - Property Tax
Credit~ Elder~y
Individuals and Veterans
After the
first
year, ongoing administration entails accepting applications, reviev.-ing
them, making a decision, calculating the
tax
credits and then preparing files of
tax
credits
for processing in
me
tax system. For example:
a.
For taxpayers who have already received the credit
in
the previous year, ongoing
administration entails certifying that the owner of record who received the
tax
credit in the previous year remains the
O'WDer
of
record; calculating
the
tax
credit
for the new year,
and
preparing files of tax
credits
for processing
in
the
tax
system.
b. The administrative workload
after
the first year is expected. to
be
low-er.
but
the
workload 'will
be
more than current
staff
have the
ability
to provide. without
degradation of other customer service related work, as noted above.
8. An explanation of how the addition of new staff responsibilities wO\lld 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..~
possible.
9.
An
estimate of costs when an additional appropriation
is
needed.
Not applicable.
10. A description of any variable that could affect revenue and cost estimates.
The number of eligible applicants may be higher or lower than estimated. There may bea
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 Wlcertain or difficult to project.
See above.
12.
If
a bill is likely to have no fiscal impact, why that is the
case~
Not applicable.
13. Other fiscal impacts or comments.
Not applicable.
Page 3 of4
 PDF to HTML - Convert PDF files to HTML files
Fiscal Impact Statement
,
Bill 42-16, Taxation -
Property
Tax
Credit -
Elderlr lndividuals and
Veterans
14. The following contributed to and concurred with this analysis:
Mike Coveyou, David Platt, Dennis Hetman, Finance
Jane
Mukira, OMB;
o!rte
f
Page 4
of4
 PDF to HTML - Convert PDF files to HTML files
Economic
Impact Statement
Bill 42·-16 Taxation - Property
Tax
Credit - Elderly Individuals and Veterans
Background:
Bill
42-16
would create a property
tax
credit for certaineldcrly individuals and veterans and
provide for the eligibility fot the property tax credit. During the 20161egisIative 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. 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 years;
or
(b)
is
a
retired member <;lfthe United
States
armed forces and 2.) the dwelling for ·whicha property tax
credit
is
SQught has a maximum
assessed
value of $500;000.
1. The sources ofimormation, assumptions, and methodologiesu.i;ed.
• u.s.
Census Bureau,
2015
American Community Su.tvey
Commission ofVeterans. Affairs, 2015 report
The
Department of Finance
ha.~
formulated an estimate of
the
annual property
tax
credit as a
result of
the
Bill
assuming
a
median
taxable
assessment base of$325,000 for properties valued
less than $500,000, a
real
property tax rate QfSL0264, 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
tor
at
least 40 years. The Commission on Veterans Affairs provided
data
that
was.
used
to
estimate
that
there
~
approximately 1,964 men and women in the County who are
at
i:ea'jt 65 yeats
ofage
and wbo ate also retired from the U.S. Anned Forces.
2. A deSCription of
any
variable that could affect
the
economic-impact
estimates.
Given the assumed
totals,
the
Department off.'inance estimates the amount of credit granted in
the first
year
to
be
approximately $.1.14 million:
.
-65+ and 40
years
Median Taxable Assessment at or below $500,000
Weighted Real Property Tax Rate: .FY2011
$325,000
$1.0264
$3,335.80
Retired
MilItary
$325.000
$1.0264 .
$3,335.80
i
Income Tax Offset (Tax Credit)
Estimated Tax
{$692.00}
I
($692.00)
$2,643.80
20JJO%
$528.76
sm
i
$2,643.80
Credit Bill
42-16: Section 52-110(d)(1)
Amount of Credit Allowed under BHl42,..16 .
Number of estimated applicants
I
20.00%
$528.76
i
1
!
!
Estimate loss
of
Property Tax
Revenues
I
189
1
$99,93SL
1,964
$1,038,485
.$1,138,420
TOTAL ESTIMATED lOSS
Page lof2
@
 PDF to HTML - Convert PDF files to HTML files
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 retireci military
and individuals
over
the age of65
that
have lived
itt
the
same dwelling for over 40 years. There
is
also
the potential for overlap between the two groups that could
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 ape! household baSis the credit
equates
to approximately
$528 per year
for those eligible.
On a ma(.-roecoIiomic
level, the Bill
Will
not dramatically
alter
employment, spending,
or property
values in
any
measurable
way.
4.
If
a
am
is
likely
to
have
no economic
impact,
why
is that tlte
case?
This legislation will have an economic impact. See paragraph #3
5.
The following
contributed
to
or concurred
with this
analysis: David Platt, Dennis
Hetman,
and Rob Hagedoom, Finance.
Date
Page2of2
@
 PDF to HTML - Convert PDF files to HTML files
Montgo,meryCouJl~Chapfer
WestBe~E)Sda,·.Ma~an(j
'20827-()127
P.O. Box 34f2T
Tesfimony regarding Council Bin 42-16,
Nov~mlber
15,2016
Good
a.fterhb()11
President
Fl9reer) and·
membet$
of
the
(:ounfyC
0
tJl'1cU,
J
am
Dqvld H,
pete.r$ph
QDd I
P(Ti,
hete
Jqdayonpehallof
th~
Montgomery';
CQ~n:ty
Cha.pter;
lh~
IQcoJaJfiHote of
the
nQtionQ[
MifitoryOfficers
Associption
of
America
lMOAA1~
MQAA onditsoffiliated
chapters
ore
non-partison advocates
forplJr Nation's
seven.
unIformed services.
.
'.
ThiS,bW
tlowsfrolil$fote:
legislation enoctedearHerthisyear
(118898);
specifYing
certbin conditions for
efig'ibiHty~
Ingerierql*
mY
ttJ()pter:rn~m,bets
sUpportthe
oci9ptjoholfhisiegisiotiPOby
MontgomeryC()\?n1y~
we
qpi
however~
have
q
cpnqern
'apol;Jt
on~
Clspectof
the bill':5
pfovl$ipn~~qnq
we seek
your
qssistanq~
and
support
foropfoiningo
rnodificationtOQojusf its
seGtionon
providing
authority
ford
local
property
tox
credit
forcerfdln
JndividUols,
and
eligibility;'
.
Our
concern regarding
C:ouncilSiU
42,.16
is
bhlyWith
the
i'EliglbiHt
y
li
provision
as
drafted.
Section
$2'-110{c
J(l)'{Bl
i
provideseligloiljtyto
r~ti'r$d
forces,"
.Wh6dl~~). me~t theqgetequ!t¢m~ht. Illth~
enobling :stote legisiofioo,if
is
cJe~¢ribedds1'Aq
ACToon¢ertHrigProwrty
Tdx
Credit--
Elderfy
Jndividuals
and Veterans.
ThefeiS
sometf)iogof (]
oisGonneGt
in
thisformuJotion.Maryland
hasadefin1tion
·of
"veteran~'
used
in
QtherJeg1s1afJon
that Is
more
inclUSIVe.
encompassing all'seven
"uniformed
services/'riotjusf the
five
'larmedservices~il
it
is
my
chapter's
respectful
request
thalourCounty
CounCil
recqgnize
that
anurifntendeddiscrepancy
tnoywell
exls1'~in
the
s.fofe
legisltJtioh~
which
Would
heed
a
technical
CorreCTIon
irtthecotning :
GeneroI
As~empIY'$essi9n"
We,askttlat
fh~
COUI'lciI.
bring
thi~¢ifcurtlstdo¢e t9m~
rnernbersofthe
11
l~dt!Tleq
qttentiQoqf
th~
C.QlJnty's
House.
and
Senate. de1e.9Cltio
nSi
portiQl)lqrfy:thQsewhd
serve on
th~HOL!se
Woys
onOMe.ansComrnittee,
all
of whom
we.re.c.{)"'$PQn~Qrs.
of
the
Howse
pHI.
.
In
my
original
reaolngdf theenciblihg
SfdtelegistOfioh:;
mYCissumptJOh
wQs
fhat
it
appeared toinclud$languageproviding 16cal JUrisdictions
with
d
cel"foindm(jUnt of discrefkm inseltirig·ddqitiphal'''eligjbiliW
c:rft~ria,'t
Uhqet
SectiQo9"'257
of
theTo~~Pr9pertyArticl~, Portps.et~
forth
"Th~,".g6v~mi11~l
t:>Qdy
ofacountv", .may
pfovldei
by tow;
for:
(2)oddiijonale[jgibiIUy
c;riterio
forJhe
fox
@
 PDF to HTML - Convert PDF files to HTML files
credit
uhder
this
sectidn,'"
t
Wgsi!1formed
by
)tour
le~islativeC1ttorneyjust
recerlflysuch
on
assumpflQfI WosJncorrect and that
only.Q
modificqtipn
toth~
enabling
legislafiqpco1.11q
~rodQcethe'oytc;prne
my chapferseel<s.
r
served in two of my country's
uniforms
over a
3ayedf
career.
leah see
no j\JsfifiecJ explonotionfor Iirnit1hgeligibilityih this legislafioh,otnerthan perhaps
d
draffingoversighf
by the GenerdlAssembly.Members of
the
Conimissi6n~d
Corps
bfthe Uhited Stofes
Public
HedlthServk;:e
dnd
the
c:oh.1mis$iqned
Cotpsof
the
Nationdl OceOhicdndAtmosphetiC Actministrotion
tdl<Erth~sQrne
commissioning
ooth
befOre
the
flog of our covntry,qs
do members pfthearmed
for<:::,es.
Far
their
servi<;::e to·pur Nqtion,
they
earn
ono receive
the
sornepay,
entitlements,
and
penefits as
those
earned
by
members
of
the
otherservices.
TheY ore
on
duty
24/7/36$,
unless
Jbey
are on
ledve~
and
they
are
always
subject
to
orders
to.
any assignedduty,and to recaH.
Drawing
on
my
oWn,
Career
as
:dn
example. dUring
niy
two
rate~career
seddutyfourSiri
cOTTii1'1dnd
of
NOAA ships, ] wassu.bjeclto the
same
dccountabilities: and
respoT1$lbllitjes
os
Navy,and
COdstGvard
offiCer-sin
Gomtr)ahd. While
mQ"~
cOtlld
p~,.sqid
if
fim$
petrnifted;lthihK
this
give~
'Iqu
q
$ehs$
that
q
lirnifationon
~Hgip.iIltyi$qlJite
inequitbbl¢.;.thaf
q
techriicqlcorrectiQois
wqrranted.
.'
.
One
lastfact
thollshore
wifh;You is
thafbpth
the
PHS, Corps:
and
the
NOAA
Corps have their
service
headquarters
right
here.
in
Montgomery
County,
PHS in RockVille 'and
NOAA in.$ilver
$prins;;r.
ThQnkY()v
for
yoot
att¢hfibn
to
theMqAAMpntgp(n~rYG(jtrr)'tYGhapt~r's
cOncerns
regqrqing
this
JegiSl(lti¢n~
IfisOlJr
hope
thalYQu
Will. yiewthese
ponstifl.lent
(pommentsihth~
h§lpful
spirit ;nwhich
theyqmqff~red
ond
int€mded.
'.
.
CQptain
Dqviq
H.Pet~rso[).
NOAA
fRef]
President
Montgom(3ry CQuntyChapter
Clo/612
Anamosa
Way
Derwood,Moryland20855
 PDF to HTML - Convert PDF files to HTML files
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:
I am 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 of the 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
theI\\
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
Council's action uses the term "armed forces" to define those eligible for this
tax
relief-
1
don't believe that
this
is actually a problem. as Maryland law. Chapter 553. enacted
in
2001, 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 oftaxation in Maryland. (Copy attached). We believe that "armed forces" and
"military
services"
are
totally synonymous tenos, 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, <tActive service of
commissioned officers ofthe [U.S. Public Health] Service shall
be
deemed to
be
active military service in the
Armed Forces of the United States ...•" reinforcing our contention that the terms <tanned 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 CoWlty 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 througb their work at the
FDA. NIH,
and other locations
in Montgomery County.
Please do not hesitate to contact me ifyou 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.
Executiw Director
8201 Corporale Drive. Suite 1170. Landover, Maryland 20785. (301) 731-90&0. FAX (301) 731-9084
 PDF to HTML - Convert PDF files to HTML files
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
@
 PDF to HTML - Convert PDF files to HTML files
Ch.
553
2007 LAWS OF MARYLAND
1.
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
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
1.
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
@
 PDF to HTML - Convert PDF files to HTML files
42 U.S. Code
§
213 -
Military benefits
Current through Pub. L. 113-234.
(d)
Ac:tive servite deemed active military service with respect to laws administered
by
Sec:retary
.,r
Veterans Affairs
Active service of commissioned. officers of the [US Public Health] Service shall
be
deemed
to
be
active military service
in
the Anned Forces of the United States for the
purposes
of all laws
administered by the Secretary of Veterans
Affairs
(except theServicemen'sfudemnity Act of
1951)
and section
417
of this title.
(e)
Active service deemed active military service with respect to Servicemembers Civil
Relief Act
Active service of commissioned officers of the Service shall
be
deemed
to
be active
military
service in the Armed Forces ofthe United States for the purposes ofall
rights,
privileges,
immunities, and benefits now or hereafter provided under the Servicemembers Civil
Relief
Act
(50
App. U.S.C.
501
et seq.).
(t)
Active service deemed active military service with respect to anti-discrimination laws
Active service of commissioned officers of the Service shall
be
deemed to
be
active
military
service in the Anned Forces of the United States for purposes of all laws related
to
discrimination on the basis ofrace, color, sex, etbnicity. age. religion. and disability.
 PDF to HTML - Convert PDF files to HTML files
121512016
https:/lmccouncilmd.lmhostediq.com/COUNTY_COUNCIUvisw_eml_2.aspx?rid=5119732&oid=98398&did=&from_set=&fromJma=&note_id=
Email Viewer
HTML
From: "Fred Marks" <fred@fmadirect.com>
Date:
10/31120165:31:56
PM
To: "county.council@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
https:/lmccouncilmd.lmhostediq.com/COUNTY_COUNCIUview_emL2.aspx?rid=5119732&oid=98398&did=&from_set=&fromJma=&noteJd=
1/1
 PDF to HTML - Convert PDF files to HTML files
1215/2016
https:llmccouncilmd.lmhostediq.com/COUNTY_COUNCIUview_eml_2.aspx?rid=5119711&Oid=98377&did=&from_set=&fromJma=&noteJd=
Email Viewer
HTML
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 Bi1142-16
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) of Ford 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
https:llmccouncilmd.lmhostediq.com/COUNTY_COUNCILlview_emL2.aspx?rid=5119711&oid=98377&did=&from_set=&fromJma=&noteJd=
1/1
 PDF to HTML - Convert PDF files to HTML files
1215/2016
https:l/mccouncilmd.lmhostediq.com/COUNTY_COUNCIUview_eml_2aspx?rid=5119710&0id=98376&did=&from_set=&fromJma=&noteJd=
Email Viewer
HTML
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
https:l/mccouncilmd.lmhostediq.com/COUNTY_COUNCIUview_eml_2.aspx?rid=5119710&0id=98376&did=&from_set=&fromJma=&nateJd=
1/1
 PDF to HTML - Convert PDF files to HTML files
121512016
https:llmccouncilmd.lmhostediq.com/COUNTY_COUNCIUview_eml_2.aspx?rid=5119986&oid=98652&did=&from_set=&from_ima=&notejd=
Email Viewer
HTML
From: "Robert Jenkins" <rj3684@gmail.com>
Date:
1112/2016
10:27:16 AM
To: "county.council@montgomerycountymd.gov" <county.council@montgomerycountymd.gov>, "Robert
Jenkins" <rj3684@gmail.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 of 25, thus severely limiting the numbers oflong
tenn 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
1
retirement incomes to stay in their homes.
Regards
Robert Jenkins
https:llmccouncilmd.lmhostediq.com/COUNTY_COUNCIUview_eml_2.aspx?rid=5119986&oid=98652&did=&from_set=&fromjma=&notejd=
1/1
 PDF to HTML - Convert PDF files to HTML files
1215/2016
https:l/mccouncilmd.lmhostediq.com/COUNTY_COUNCllJview_emL2.aspx?rid==5120460&oid==98854&did==&from_set==&fromJma==&noteJd=
Email Viewer
HTML
From: "Cindy Davis" <cdavisgo l23@gmail.com>
Date: 1115/20163:07:10 PM
To: "county;council@montgomerycountymd.gov" <county.council@montgomerycountymd.gov>
Cc:
Subject: Bi1142-l6
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 ifthe 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.coml>*
https:l/mccouncilmd.lmhostediq.com/COUNTY_COUNCllJview_em 1-.2.aspx?rid=512046O&oid==98854&did=&from_ser-&fromJma==&noteJd==
1/1
 PDF to HTML - Convert PDF files to HTML files
121512016
https:llmccouncilmd.lmhostediq.com/COUNTY_COUNCIUvisw_eml_2.aspx?rid=511984O&oid=98507&c1id=&frOlTl_set=&from_ima=&notejd=
Email Viewer
HTML
From: "Mel Banks" <melbanks@earthlink.net>
Date: 11111201612:06:08 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 ofliving, 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 ifthe 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
hltps:llmccouncilmd.lmhostediq.com/COUNTY_COUNCIUvisw_eml_2.aspx?rid=511984O&oid=98507&did=&from_set=&fromjma=&notejd=
1/1
 PDF to HTML - Convert PDF files to HTML files
Stanley D. Abrams
15101 EMORY LANE
ROCKVILLE, MARYLAND 20853
TELEPHONE: (301) 46()"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 $750,000.00 for its application.
No one needs to ten you that Montgomery County is an expensive place to own a home
and a $500,000.00 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 $55,000.00 - $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
$500,000.00
in
sales prices.
Please consider this request when the PHED Committee meets on this Bill.
Thank You,
~
/.~
Stanley D.
rams
cc:
Councilman George Levantha1
Councilman Hans Reimer
---
:z:
CI
-~
~
:::J::tn
:-JO~
Ci:;;u
...
::~
,'"
­
'.,
'-1
'="'fTI
-::::0
")-«
­
=of'l'1
,,,",
CD
.::J:
~-'"
00
C
:z:
-4
-<
W
.l:
0.'
@
 PDF to HTML - Convert PDF files to HTML files
121512016
https:llmccouncilmd.lmhostediq.com/COUNTY_COUNCIUview_eml_2.aspx?rid=5119689&oid=98355&did=&from_set=&fromJma=&noteJd=
Email Viewer
HTML
From: "Naomi Yount" <NaomiYount@Westat.com>
Date: 10/3112016 2:26:03 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
https:l/mccouncilmd.lmhostediq.com/COUNTY_COUNCIL.Jview_eml_2.aspx?rid=5119689&oid=98355&did=&from_set=&frornJma=&noteJd=
1/1
 PDF to HTML - Convert PDF files to HTML files
121512016
https:llmccouncilmd.lmhostediq.com/COUNTY_COUNCIUview_eml_2aspx?rid=5119925&oid=98591&did=&from_set=&fromJma=&noteJd=
Email Viewer
HTML
From: "Patrick Garvey" <garvp175@verizon.net>
Date: 11/1/20166:03:02 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 ofthe 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
https:J/mccouncilmd.lmhostediq.com/COUNTY_COUNCIUview_emL2.aspx?rid=5119925&oid=98591&did=&from_set=&fromJ ma=&noteJd=
1/1
 PDF to HTML - Convert PDF files to HTML files
121512016
https:llmccooncilmd.lmhostediq.com/COUNTY_COUN CIUStream0 ownloader.aspx?path=&filename= 1252016_121633PM_E-Mail Message 2016-11-Q ..
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, Council member <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.
~
V
https:l/mccouncilmd.lmhostediq.com/COUNTY_COUNCIUStreamDownioader.aspx?path=&filename=1252016_121633PM_E-Mail%2OMessage%202016-11-...112
 PDF to HTML - Convert PDF files to HTML files
121512016 https:llmccouncilmd.lmhostediq.com/COUNTY_COUNCIUSlreamDownloader.aspx?path=&filename=1252016_121633PM_E-Mail Message2016-11-Q. ..
Joyce Siegel
https:llmccouncilmd.lmhostecliq.com/COUNTY_COUNCIUStreamDownioader.aspx?path=&filename=1252016_121633PM_E-Mail%20Message%202016-11-...
2J2
 PDF to HTML - Convert PDF files to HTML files
121512016
htlps:l/mccouncilmd.lmhostediq.com/COU NTY_COUNCIUStream Downloader.aspx?path=&filename=1252016_121700PM_E-Mail Message 2016-11-U ..
From:
Floreen's Office, Councilmember [Councilmember.Floreen@montgomerycountymd.gov]
Sent: Thursday, November 03,20162:58:23 PM
To: Council President
Subject: FW: bil142-16 opposed
From: Barbara Siegel [mailto:barbsiegel@verizon.net]
Sent: Thursday, November 03, 20162:07 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
bil142-16.
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}louse 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://look21isten.com
Barb@look2listen.com
Through the process ofgraphic consultation, my clients and I use drml'ings, color, typography and other creative elements to find greater
understanding and solutions
l~n
ways that are impossible with conversation alone. The amorult ofbrain space dedicated to visual processing is
greater than that for all other sensory processing combined: this pl'Ocess builds on our natural
il1ci
inations to broaden our thinking and
improve pClformancc.
htlps:l/mccouncilmd.lmhostediq.com/COUNTY_COUNCIUStreamDownloader.aspx?path=&filename=1252016_121700PM_E-Mail%20Message%202016-11-...112
 PDF to HTML - Convert PDF files to HTML files
COMMISSION ON AGING
November 15, 2016
My name is Rudy Oswald and I am 2
nd
vice-chair ofthe Commission on Aging. On behalfof
the
Commission
on Aging (COA), I am pleased to endorse Bill No.42-16 with a recommended amendment. This bill
implements HB 898 recently adopted by the legislators
&
signed by the Governor.
It
provides 5 years of
property relief for citizens over 65 who have lived
in
their homes fur more than 40 years and for retired
members ofthe US
armed
forces. Certainly, this is a deserving group of citizens who have more than paid
their dues to the County and the nation.
The state law gives the County the discretion to set the maximum property value level fur which the 20% tax
credit will apply. Bill
#
42-16 sets that maximum at $500,000. The Commission on
Aging
urges youto
lift
this level to $700,000. This would help more senior citizens remain
in
their homes as they face rising home
valuations and larger tax bills. Many couples who have raised their families in their homesteads as well as
many widows and widowers will benefit from this bill. They have all paid property taxes fur over 40 years
or served their country
in
the armed services.
I would like to give you my personal example. I moved into my house in Montgomery Square subdivision in
1969 and raised our 4 children there. I paid $45,000 fur the house at that time. The assessed value of that house
is now $568,000. When I retired 20 years ago the assessed value was $264,000. While I received a pension
and Social Security, my pension remains basically unchanged from 20 years ago, while my tax assessment more
than doubled.
As
one ages, one becomes house rich, but income poor. In my neighborhood are many original
owners and widows
&
widowers who wish to continue to reside in their homes, but are buffeted by increasing
real estate taxes.
By raising the threshold to $700,000 more county residents would be eligible for this 5-year reprieve.
Department of Health and Human Services
401 Hungerford Drive, 4th Floor, Rockville, Maryland, 20850 240-777-1120, FAX 240-777-1436
www.montgomervcountymd.govlhhs
 PDF to HTML - Convert PDF files to HTML files
GOCA':
Gregory Intoccia
;\SHLE'r IhH. LOW
Greater OlneyCiyil Association
P.O. Box 212· Olney, Maryland' 20830
www.goca.org
Matthew Quinn
I,
""'\Iii",
\,i(l~ f'r~sitl,,'Jlf
CHEIlRI'WOOl)
Lee Lofthus
First Vice Prrsii.l<Jlf
January 30, 2017
Oatlaud Farm
Matt Zaborsky
Secont! Vi.:r PIT,itkn!
:".ORHFt'K
'IE:~P()W~
Stacy Levine
RI'C()rliin)!
Serre!>I."
H;r· ... ;
The Honorable Nancy Floreen
President, Montgomery County Council
100 Maryland Avenue
Rockville, MD 20850
~i..\·1
A'I r;AIRHILl..
~
Jackie Benn
Curn'sporHlilll:
f.\IRIH:
t.
FAR\!
Dear Council President Floreen:
Srrrel'~/")'
Robert Hambrecht
'I reasur.r
\\"1 LU·,\ '\ISHl"!{I."
lLL\GL
We understand that pending before the County Council is Bill 42-16--Property Tax Credit. I
would like to express my strong support of this bill, which would create a new 20% property tax
credit for County residents who are at least 65 years old and who have lived in the same dwelling
for at least 40 years. Retired members of the U.S. military who are at least 65 years old also
would be eligible for the tax credit. We understand that the dwelling for which a property tax
credit is sought must have a maximum assessed value of $500,000. Given state law, we also
understand the qualifying conditions cannot be modified by the County.
Montgomery County is a wonderful place in which to live.
It
is, though, also an expensive place
in which to live, and this makes it more difficult for those in their retirement years to continue to
live here. Fortunately, this bill offers some assistance to elderly residents who have either spent
many years in their homes or who have protected us through their many years of service to our
Nation. This bill acknowledges the significant contributions that these residents have made in
helping to build or safeguard the community, and it is in keeping with the enduring values of our
County.
Sincerely,
Greg Intoccia
President, Greater Olney Civic Association
cc Council Members:
Roger Berliner
Marc EIrich
Tom Hucker
Sidney Katz
George Leventhal
Nancy Navarro
Craig Rice
Hans Riemer
cc: County Executive Isiah Leggett
 PDF to HTML - Convert PDF files to HTML files
GO Item 2
February 16,2017
Worksession 3
MEMORANDUM
February 14,2017
TO:
FROM:
SUBJECT:
Government Operations and Fiscal Policy Committee
\
(\
J"'­
r
Amanda Mihill, Legislative AttomeycAWlk"Ul
Worksession 3: 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 ©14-33). Government Operations and Fiscal Policy Committee
worksessions were held on December 12,2016 and again on January 19, 2017.
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 ofthe United States armed forces. Finally, and eligible individual may receive a property
tax credit ifthe 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 County
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 defmitions 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.
 PDF to HTML - Convert PDF files to HTML files
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, 32-33). 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 Prior Committee Worksessions
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 of the 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.
The Committee held a second worksession on Bi1l42-16 on January 19,2017. At that worksession,
the Committee discussed what the maximum assessed value of a dwelling should be in order for a
resident to be eligible for the credit. Councilmember Riemer preferred that the maximum assessed
value be $500,000 while Councilmember Katz preferred that the maximum assessed value be
$650,000. Councilmember Navarro was unable to attend the worksession and Councilmembers
Riemer and Katz requested that Council staff inquire with her as to what her position was. After
the worksession, Councilmember Riemer requested additional fiscal impact estimates, which are
shown in the issues below. In addition to this issue, Councilmembers Riemer and Katz both
recommended that the legislation be amended to require a property owner to submit an application
by April 1 each year that the individual wants to receive the credit (©3, lines 26-28).
Issue for Committee Consideration
Should the maximum assessed value
0/
a dwelling be increased?
Bi1l42-16 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:
The state enabling legislation allows the County the discretion
to set a maximum assessed value ofa 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
2
 PDF to HTML - Convert PDF files to HTML files
infonnation on the estimated fiscal impact for various assessment values. This infonnation is
provided in the table below.
Max.
Assessed
Value
Est.
Fiscal
Impact
$400,000
$851,141
$450,000
$500,000
$1,138,420
$550,000
$1,282,060
$600,000
$1,425,699
$650,000
$1,364,413
$700,000
$1,492,289
$750,000
$1,620,165
$994,781
After the second worksession, Councilmember Riemer requested additional fiscal
infonnation if the bill were amended to require different maximum assessed values. This
infonnation is provided in the table below.
Max. Assessed Va1ue­
Elderly
Max. Assessed Va1ue­
Veteran
Est. Fiscal Impact
$650,000
$500,000
$1,014,462
$650,000
$400,000
$781,161
In detennining 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.
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:\LAW\BILLS\l642 Tax Credit For Elderly-Vet\GO Memo 3.Docx
3
 PDF to HTML - Convert PDF files to HTML files
Bill No.
42-16
Concerning: Taxation - Prooertv Tax
Credit - Elderly Individuals and
Veterans
Revised:
2113/2017
Draft No. 5
Introduced:
October 18,2016
April 18, 2018
Expires:
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: ---'-!.N:=::.:on.!!:e:.........-_ _ _ _ __
Ch. _ _, 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 the following Act:
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
42-16
1
Sec.
I.
Section 52-110 is added as follows:
52-110. Property tax credit elderly individuals and veterans.
(ill
Definitions.
In
this Section, the following words have the meanings
2
3
=
4
indicated:
Department
means the Department of Finance.
Director
means the Director of the Department or the Director's
5
6
7
8
designee.
Dwelling
has the same meaning as in §9-105 of the Tax-Property Article
9
10
11
of the Maryland Code.
®
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
15
16
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:
(A)
has lived in the same dwelling for at least the preceding 40
years; or
17
18
m1
ill
@
is
~
retired member ofthe United States armed forces; and
~
the dwelling for which
property
tax
credit is sought has
~
19
20
maximum assessed value of $500,000.
Amount and duration
Q[
credit.
21
ill
ill
The credit allowed under this Section is 20% of the [[county]]
County property
tax
imposed on the dwelling.
The credit must be granted each year for
~
years if the individual
remains eligible for the credit.
22
23
24
~
~;
f:\law\bills\1642 tax credtt for elderly-vet\bill 5.docx
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
42-16
25
W
Application.
26
27
28
ill
A property owner must submit an application to the Director on or
before [[the date that the Director sets for]] April 1 before each tax
year that the individual remains eligible for the credit.
29
30
31
32
33
ill
An application must:
CA)
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.
to administer this tax credit.
34
35
Roger Berliner, President, County Council
Date
36
Approved:
37
Isiah Leggett, County Executive
Date
38
This is a correct copy ofCouncil action.
39
Linda M. Lauer, Clerk ofthe Council
Date
f:\law\bills\1642
tax
credit for elderty-vet\bill S.docx
 PDF to HTML - Convert PDF files to HTML files
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 IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIEN CE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
N/A
F:\LAW\BILLS\1642 Tax Credit For Elderly-Vet\LRR.Docx
 PDF to HTML - Convert PDF files to HTML files
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
 PDF to HTML - Convert PDF files to HTML files
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
 PDF to HTML - Convert PDF files to HTML files
ROCKVILLE,?o.fARYLAND
MEMORANDUM
November 8, 2016
TO:
FROM:
SUBJECT:
Nancy Floreen, President, County Council
Jennifer A. H..
Offi.lce
and Budget
Alexandre
A.~~~~lrector,
Department ofFmance
PElS for Bill 42-16, Taxation ­ Property
Tax
Credit~
Elderly Individuals and
Veterans
~~~r.
ofManagem~tlt
Please find attached the fiscal and economic impact statements for the above-
referenced legislations.
.
JAH:fz
cc: Bonnie Kirkland, Assistant Chief Administrative Officer
Lisa Austin, Offices of
the County Executive
Joy
Nurmi, Special Assistant to
the
County Executive
Patrick Lacefield. Director, Public Information Office
D~lVid
Platt, Department of Finance
Dennis Hetman, Department of Finance
Jane Mukira, Office
of Management and
Budget
Nacem Mia. Otlice of Management and Budget
 PDF to HTML - Convert PDF files to HTML files
Fiscal Impact Statement
Bill 42-16, Taxation - Property Tax Credit - Elderly Indniduals and Veterans
1. Legislative Summary
Bill 42-16 provides a property
tax
credit for certain property owners who are at least 65
years of
age and
either.
(1)
have resided at
the sa:tnc property
for at
least 40
years,
or
(2)
are retired from the
military;
The
tax
credit is available
to
all taxpayers who meet these
requirements, if
their
property's assessed value is no more than $500,00().
2.
An
estimate of changes in County revenues and.e:xpendituresregardless ofwhether
the revenueS or expenditures are assumed
in
the recommended or approved budget.
Includes source ofinformation, assumptions, and methodologies
used.
The estimated amount of the credit
granted
in
the
fIrst year is approximately $1.14
million,
which is
not
currently budgeted in the FY17
approved
budget.
The Department ofFinance. (Depart:ment) notes
that
there are 189 property
tax
accolints
in
the County that have been owned
by
the same entity for
at
least
40yeaI'$.
The
Commission on Veterans Affairs
provided
the
Department data
that
was
used
to
estimate
that there are approximately 1,964 CoUilty residents who are
at
least 65
years
of age and
are
also retired
from
the
U.S.
Armed 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
need one additional full-time
taX
credit adtninistrator
(Grade
18
to
23)
to handle this additional workload.
3.
Revenue and eXpenditure estimates covering
at
least
the BeJ:t
6
fiscaly~rs.
The amount of
tax
credits
granted
will likely
be
approximately
$
L 14
million
pet
year
over the next 6 years. An additional expenditure for a new administrative position will
range from
$74,000
to
$94,000 per
year, including benefits, depending
on
the grade of
the position.
..
The revenue loss would
be
approxiinately
$6.8 million over
six
years,
and
expenditures
would
be
between
$444,000 and $564,000
over six years. Expenditures are
primarily
personnel
costs for
administration
of the
tax
credits. The
Pepartment
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
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 technology (IT)
systems. including E.nterprise Resource Planning (ERP) systems.
Page
1
of~
 PDF to HTML - Convert PDF files to HTML files
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 ofFinance
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 incrernentalon 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 approximatdy60 hours and includes developing
informational
materi~
for print and for posting on County
web
sites to explain the
program, including the origin. of the program. the application process,and the timing of
the entire program
(the
estimated schedule toge! from the receipt ofan application
by
the
Department of Finance to the actual posting of the taxcredit
to
the
tax
bill).
lnitial
implementation includes Setting
up
internal
tracking
of
application.~
and
the
credits ina
MS
Excel spreadsheet, to begin the program. It includes working
with
Finance.,.IT.
and
possibly DTS,
to
get the initial website(s)rurtning.
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 colUlters. Initial implementation also
includes
making paper copies ofapplication packets which will include the informational 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~a1one
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 iathe first year will likely be close
to
2,000, ifnot higher. This v.ill require full­
time work for most
of
the
year.
In
addition to the administI'1ltive work,
t;he
administrator
\\>;11
work with
Finance-IT
or DTS
(Or
both)
as the
functional lead for developing
a
software application specific to this
tax
credit, because ofthe number ofcredits that
~ill
likely be granted.
It
is not possible
to
detenmne
if
a new softvvate application is
necessary,
at
this time.
Page
2
of-4­
 PDF to HTML - Convert PDF files to HTML files
"
Fiscal Impact Statement
Bm~1-16,
Taxation - Property Tax
Credit~ Elder~y
Individuals and Veterans
After the
first
year, ongoing administration entails accepting applications, reviev.-ing
them, making a decision, calculating the
tax
credits and then preparing files of
tax
credits
for processing in
me
tax system. For example:
a.
For taxpayers who have already received the credit
in
the previous year, ongoing
administration entails certifying that the owner of record who received the
tax
credit in the previous year remains the
O'WDer
of
record; calculating
the
tax
credit
for the new year,
and
preparing files of tax
credits
for processing
in
the
tax
system.
b. The administrative workload
after
the first year is expected. to
be
low-er.
but
the
workload 'will
be
more than current
staff
have the
ability
to provide. without
degradation of other customer service related work, as noted above.
8. An explanation of how the addition of new staff responsibilities wO\lld 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..~
possible.
9.
An
estimate of costs when an additional appropriation
is
needed.
Not applicable.
10. A description of any variable that could affect revenue and cost estimates.
The number of eligible applicants may be higher or lower than estimated. There may bea
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 Wlcertain or difficult to project.
See above.
12.
If
a bill is likely to have no fiscal impact, why that is the
case~
Not applicable.
13. Other fiscal impacts or comments.
Not applicable.
Page 3 of4
 PDF to HTML - Convert PDF files to HTML files
Fiscal Impact Statement
,
Bill 42-16, Taxation -
Property
Tax
Credit -
Elderlr lndividuals and
Veterans
14. The following contributed to and concurred with this analysis:
Mike Coveyou, David Platt, Dennis Hetman, Finance
Jane
Mukira, OMB;
o!rte
f
Page 4
of4
 PDF to HTML - Convert PDF files to HTML files
Economic
Impact Statement
Bill 42·-16 Taxation - Property
Tax
Credit - Elderly Individuals and Veterans
Background:
Bill
42-16
would create a property
tax
credit for certaineldcrly individuals and veterans and
provide for the eligibility fot the property tax credit. During the 20161egisIative 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. 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 years;
or
(b)
is
a
retired member <;lfthe United
States
armed forces and 2.) the dwelling for ·whicha property tax
credit
is
SQught has a maximum
assessed
value of $500;000.
1. The sources ofimormation, assumptions, and methodologiesu.i;ed.
• u.s.
Census Bureau,
2015
American Community Su.tvey
Commission ofVeterans. Affairs, 2015 report
The
Department of Finance
ha.~
formulated an estimate of
the
annual property
tax
credit as a
result of
the
Bill
assuming
a
median
taxable
assessment base of$325,000 for properties valued
less than $500,000, a
real
property tax rate QfSL0264, 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
tor
at
least 40 years. The Commission on Veterans Affairs provided
data
that
was.
used
to
estimate
that
there
~
approximately 1,964 men and women in the County who are
at
i:ea'jt 65 yeats
ofage
and wbo ate also retired from the U.S. Anned Forces.
2. A deSCription of
any
variable that could affect
the
economic-impact
estimates.
Given the assumed
totals,
the
Department off.'inance estimates the amount of credit granted in
the first
year
to
be
approximately $.1.14 million:
.
-65+ and 40
years
Median Taxable Assessment at or below $500,000
Weighted Real Property Tax Rate: .FY2011
$325,000
$1.0264
$3,335.80
Retired
MilItary
$325.000
$1.0264 .
$3,335.80
i
Income Tax Offset (Tax Credit)
Estimated Tax
{$692.00}
I
($692.00)
$2,643.80
20JJO%
$528.76
sm
i
$2,643.80
Credit Bill
42-16: Section 52-110(d)(1)
Amount of Credit Allowed under BHl42,..16 .
Number of estimated applicants
I
20.00%
$528.76
i
1
!
!
Estimate loss
of
Property Tax
Revenues
I
189
1
$99,93SL
1,964
$1,038,485
.$1,138,420
TOTAL ESTIMATED lOSS
Page lof2
@
 PDF to HTML - Convert PDF files to HTML files
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 retireci military
and individuals
over
the age of65
that
have lived
itt
the
same dwelling for over 40 years. There
is
also
the potential for overlap between the two groups that could
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 ape! household baSis the credit
equates
to approximately
$528 per year
for those eligible.
On a ma(.-roecoIiomic
level, the Bill
Will
not dramatically
alter
employment, spending,
or property
values in
any
measurable
way.
4.
If
a
am
is
likely
to
have
no economic
impact,
why
is that tlte
case?
This legislation will have an economic impact. See paragraph #3
5.
The following
contributed
to
or concurred
with this
analysis: David Platt, Dennis
Hetman,
and Rob Hagedoom, Finance.
Date
Page2of2
@
 PDF to HTML - Convert PDF files to HTML files
Montgo,meryCouJl~Chapfer
WestBe~E)Sda,·.Ma~an(j
'20827-()127
P.O. Box 34f2T
Tesfimony regarding Council Bin 42-16,
Nov~mlber
15,2016
Good
a.fterhb()11
President
Fl9reer) and·
membet$
of
the
(:ounfyC
0
tJl'1cU,
J
am
Dqvld H,
pete.r$ph
QDd I
P(Ti,
hete
Jqdayonpehallof
th~
Montgomery';
CQ~n:ty
Cha.pter;
lh~
IQcoJaJfiHote of
the
nQtionQ[
MifitoryOfficers
Associption
of
America
lMOAA1~
MQAA onditsoffiliated
chapters
ore
non-partison advocates
forplJr Nation's
seven.
unIformed services.
.
'.
ThiS,bW
tlowsfrolil$fote:
legislation enoctedearHerthisyear
(118898);
specifYing
certbin conditions for
efig'ibiHty~
Ingerierql*
mY
ttJ()pter:rn~m,bets
sUpportthe
oci9ptjoholfhisiegisiotiPOby
MontgomeryC()\?n1y~
we
qpi
however~
have
q
cpnqern
'apol;Jt
on~
Clspectof
the bill':5
pfovl$ipn~~qnq
we seek
your
qssistanq~
and
support
foropfoiningo
rnodificationtOQojusf its
seGtionon
providing
authority
ford
local
property
tox
credit
forcerfdln
JndividUols,
and
eligibility;'
.
Our
concern regarding
C:ouncilSiU
42,.16
is
bhlyWith
the
i'EliglbiHt
y
li
provision
as
drafted.
Section
$2'-110{c
J(l)'{Bl
i
provideseligloiljtyto
r~ti'r$d
forces,"
.Wh6dl~~). me~t theqgetequ!t¢m~ht. Illth~
enobling :stote legisiofioo,if
is
cJe~¢ribedds1'Aq
ACToon¢ertHrigProwrty
Tdx
Credit--
Elderfy
Jndividuals
and Veterans.
ThefeiS
sometf)iogof (]
oisGonneGt
in
thisformuJotion.Maryland
hasadefin1tion
·of
"veteran~'
used
in
QtherJeg1s1afJon
that Is
more
inclUSIVe.
encompassing all'seven
"uniformed
services/'riotjusf the
five
'larmedservices~il
it
is
my
chapter's
respectful
request
thalourCounty
CounCil
recqgnize
that
anurifntendeddiscrepancy
tnoywell
exls1'~in
the
s.fofe
legisltJtioh~
which
Would
heed
a
technical
CorreCTIon
irtthecotning :
GeneroI
As~empIY'$essi9n"
We,askttlat
fh~
COUI'lciI.
bring
thi~¢ifcurtlstdo¢e t9m~
rnernbersofthe
11
l~dt!Tleq
qttentiQoqf
th~
C.QlJnty's
House.
and
Senate. de1e.9Cltio
nSi
portiQl)lqrfy:thQsewhd
serve on
th~HOL!se
Woys
onOMe.ansComrnittee,
all
of whom
we.re.c.{)"'$PQn~Qrs.
of
the
Howse
pHI.
.
In
my
original
reaolngdf theenciblihg
SfdtelegistOfioh:;
mYCissumptJOh
wQs
fhat
it
appeared toinclud$languageproviding 16cal JUrisdictions
with
d
cel"foindm(jUnt of discrefkm inseltirig·ddqitiphal'''eligjbiliW
c:rft~ria,'t
Uhqet
SectiQo9"'257
of
theTo~~Pr9pertyArticl~, Portps.et~
forth
"Th~,".g6v~mi11~l
t:>Qdy
ofacountv", .may
pfovldei
by tow;
for:
(2)oddiijonale[jgibiIUy
c;riterio
forJhe
fox
@
 PDF to HTML - Convert PDF files to HTML files
credit
uhder
this
sectidn,'"
t
Wgsi!1formed
by
)tour
le~islativeC1ttorneyjust
recerlflysuch
on
assumpflQfI WosJncorrect and that
only.Q
modificqtipn
toth~
enabling
legislafiqpco1.11q
~rodQcethe'oytc;prne
my chapferseel<s.
r
served in two of my country's
uniforms
over a
3ayedf
career.
leah see
no j\JsfifiecJ explonotionfor Iirnit1hgeligibilityih this legislafioh,otnerthan perhaps
d
draffingoversighf
by the GenerdlAssembly.Members of
the
Conimissi6n~d
Corps
bfthe Uhited Stofes
Public
HedlthServk;:e
dnd
the
c:oh.1mis$iqned
Cotpsof
the
Nationdl OceOhicdndAtmosphetiC Actministrotion
tdl<Erth~sQrne
commissioning
ooth
befOre
the
flog of our covntry,qs
do members pfthearmed
for<:::,es.
Far
their
servi<;::e to·pur Nqtion,
they
earn
ono receive
the
sornepay,
entitlements,
and
penefits as
those
earned
by
members
of
the
otherservices.
TheY ore
on
duty
24/7/36$,
unless
Jbey
are on
ledve~
and
they
are
always
subject
to
orders
to.
any assignedduty,and to recaH.
Drawing
on
my
oWn,
Career
as
:dn
example. dUring
niy
two
rate~career
seddutyfourSiri
cOTTii1'1dnd
of
NOAA ships, ] wassu.bjeclto the
same
dccountabilities: and
respoT1$lbllitjes
os
Navy,and
COdstGvard
offiCer-sin
Gomtr)ahd. While
mQ"~
cOtlld
p~,.sqid
if
fim$
petrnifted;lthihK
this
give~
'Iqu
q
$ehs$
that
q
lirnifationon
~Hgip.iIltyi$qlJite
inequitbbl¢.;.thaf
q
techriicqlcorrectiQois
wqrranted.
.'
.
One
lastfact
thollshore