Expedited Bill No.
10-16
Concerning: Taxation - Residential Real
Property Tax Deferral - Senior
Citizens
Revised:
3/10/2016
Draft No.
1
Introduced:
April 5,
2016
Enacted:
May
18, 2016
Executive: _ _ _ _ _ _ _ __
Effective:
July
1,
2016
Sunset Date: --'"-'-No-=n-=e'---------
Ch. _ _ , Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsors: Vice President Berliner and Councilmembers Katz and Riemer
Co-Sponsors: Council President Floreen and Councilmembers Rice, Navarro, Elrich, and Rucker
AN EXPEDITED ACT
to:
(1) provide for a residential real property tax deferral for certain residents; and
(2) generally amend the County taxation law.
By amending
Montgomery County Code
Chapter 52, Taxation
Section 52-1 SF
Boldface
Underlining
[Single boldface brackets]
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Heading or defined term.
Added to existing law
by
original
bill.
Deletedfrom existing law
by
original
bill.
Added
by
amendment.
Deletedfrom existing law or the
bill by
amendment.
Existing law unaffected
by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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EXPEDITED BILL NO.
10-16
1
Sec.
1.
Section 52-18F is amended as follows:
52-18F. Residential real property tax deferral[-General].
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(a)
Definitions.
In this Section the following words have the meanings
indicated:
Dependent
means~
dependent under Section 152 of the Internal Revenue
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8
Code.
[(1)
"Director"]
Director
means the Director of the Department of
Finance.
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[(2)
"Legal interest"]
Legal interest
has the meaning stated in Section
9-104 of the Tax-Property Article of the Maryland Code.
[(3)
"Owner"]
Owner
means an individual who has a legal interest in
residential real property.
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(b)
Authorization; Amount of Deferral.
An
owner may defer payment of
County property taxes due on residential real property occupied by the
owner as the owner's principal residence if the owner meets the
requirements of this Section. The amount of taxes that may be deferred
for any one year is the amount that County taxes due exceeds the amount
of County property taxes paid in the prior taxable year.
(
c)
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Program Eligibility.
An
owner is eligible for a payment deferral under
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21
this Section if:
(1)
(A)
the gross mcome or combined gross income of all
individuals who actually reside in the dwelling (except a
dependent [under Section 152 of the Internal Revenue
Code] or a person who pays reasonable fixed charges for
rent or room and board), did not exceed $120,000 for the
calendar year that immediately precedes the taxable year for
which the deferral is sought; and
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EXPEDITED BILL
No. 10-16
1
[(2)]
ill)
the owner, or at least one of the owners, has resided in the
dwelling as that person's principal place of residence for 5
consecutive years and continues to occupy the property for
that
purpose[.]~
or
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3
4
5
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ill
(A)
the owner is at least 65 years old; and
the gross income or combined gross mcome of all
individuals who actually reside in the dwelling (except
f!
dependent or
£!
person who
ill)
reasonable fixed charges
9
for rent or room and board), did not exceed $80,000 for the
calendar year that immediately precedes the taxable year for
which the deferral is sought.
For purposes of income determination under paragraph [(1)]
.(fil,
and to
the extent consistent with this Section, gross income or combined gross
income must be calculated in accordance with Section 9-104 of the Tax-
Property Article of the Maryland Code.
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(
f)
*
Interest.
*
*
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ill
[Interest] Except as provided in paragraph
.{21
interest accrues on
the deferred taxes at a rate set annually by the Director that does
not exceed the prime lending rate generally available on June 1 of
the preceding fiscal year.
The regulations adopted under
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subsection (
q)
must specify the source or sources that the Director
must use to calculate the prime rate generally available on June 1
of each year. The annual interest rate set by the Director applies
to any tax deferred that year, regardless of the year when the tax
was first deferred.
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ill
Notwithstanding paragraph
.Q1
for deferrals for owners eligible
-3-
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EXPEDITED BILL NO.
10-16
1
under paragraph (c)(2), the interest accrues on the deferred taxes
at~
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3
rate of 0.0% or another amount set
by
Council resolution.
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(h)
*
*
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Limits on Deferrals.
The accumulation of deferred taxes and accrued
interest must not exceed [50 percent] 50% of the full cash value of the
property, as determined by the Supervisor of Assessments, or a lesser
amount elected by the taxpayer and specified in the agreement required
under subsection
(1).
When the maximum amounts have been reached,
those amounts may continue to be deferred until any of the events
specified in subsection (k) occur.
An
owner who receives a tax deferral
under this Section must not also receive a tax deferral under Section
52-18C.
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*
Sec. 2.
*
*
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Expedited Effective Date.
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on July 1, 2016.
Approved:
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Nancy Floreen, Pre ident, County Council
/?.
;;;..oJ
Date
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Approved:
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Isiah Leggett, County Executive
Date
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This is a correct copy ofCouncil action.
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Linda M. Lauer, Clerk of the Council
Date
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