GO Item 2
Government Operations and Fiscal Policy Committee
Amanda Mihill, Legislative AttomeycAWlk"Ul
Worksession 3: Bill 42-16, Taxation - Property Tax Credit - Elderly Individuals
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:
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.
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).
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