Agenda Item 3A
October 18,2016
Introduction
MEMORANDUM
October 14,2016
TO:
FROM:
SUBJECT:
County Council
Amanda Mihill, Legislative
Attomey~~
Introduction:
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 Council President Floreen, is scheduled to be introduced on October 18, 2016. A public
hearing is tentatively scheduled for November 15 at 1:30 p.m.
Bill 42-16 would create a property tax credit for certain elderly individuals and veterans.
This packet contains:
Bill 42-16
Legislative Request Report
State enabling legislation
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Bill No.
42-16
Concerning: Taxation - Prooertv Tax
Credit - Elderly Individuals and
Veterans
Revised:
10/13/2016
Draft No. 4
Introduced:
October 18.2016
Expires:
April 18. 2018
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:
-!..!N~on~e::......_
_ _ _ _ __
Ch, _ _ Laws of Mont. Co. _ __
I
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President Floreen
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 bracketsD
* * *
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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BILL
No.
42-16
1
Sec.
1.
Section· 52-110 is added as follows:
52-110. Property tax credit elderly individuals and veterans.
fu}
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
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6
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8
9
10
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designee.
Dwelling
has the same meaning as in §9-105 ofthe Tax-Property Article
of the Maryland Code.
(hl
Credit.
As authorized
by
§9-257 of the Tax-Property Article of the
Maryland Code, an eligible individual may receive
~
credit against the
County property
tax
imposed on the dwelling of an eligible individual.
{£}
Eligibility.
An
individual is eligible to receive
~
property
tax
credit if:
12
13
14
ill
the individual is at least 65 years old and:
CA)
has lived in the same dwelling for at least the preceding
40
years; or
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16
17
18
19
an
ill
@
is
~
retired member of the United States armed forces; and
the dwelling for which
~
property
tax
credit is sought has
~
maximum assessed value of
$500,000.
20
Amount and duration
Q[
credit.
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22
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ill
The credit allowed under this Section is 20% of the county
property tax imposed on the dwelling.
ill
The credit must be granted each year for
~
years if the individual
remains eligible for the credit.
24
(2)
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tax
credit for elderly-vet\bill4.docx
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BILL
No. 42-16
25
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UU
Application.
ill
A property owner must submit an application to the Director on or
before the date that the Director sets for each year that the
individual remains eligible for the credit.
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ill
An application must:
(A)
be on the form that the Director requires; and
demonstrate that the taxpayer is entitled to the credit.
an
ill
Approved:
Regulations.
The County Executive may issue regulations under Method'
2
to administer this tax credit.
34
35
Nancy Floreen, President, County Council
Date
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Approved:
37
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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1642
tax
credit for elderiy-vet\bill 4.docx
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LEGISLATIVE REQUEST REPORT
Bi1142-16
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:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
NIA
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LAWRENCE
J.
HOGAN,
JR.,
Governor
Chapter 498
(House Bill 898)
AN ACT concerning
Property Tax Credit - Elderly Individuals and Veterans
Ch.498
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.
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Ch.498
2016 LAWS OF :MARYLAND
(B)
THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY GRANT, BY LAW,
A PROPERTY TAX CREDIT UNDER THIS SECTION AGAINST THE COUNTY OR
MUNICIPAL CORPORATION PROPERTY TAX IMPOSED ON THE DWELLING OF AN
ELIGIBLE INDIVIDUAL.
(C)
THE PROPERTY TAX CREDIT ALLOWED UNDER THIS SECTION MAY:
NOT EXCEED
20%
OF THE COUNTY OR MUNICIPAL CORPORATION
PROPERTY TAX IMPOSED ON THE PROPERTY; AND
(1)
(2)
BE GRANTED FOR A PERIOD OF UP TO
5
YEARS.
(D)
THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY PROVIDE, BY
LAW,FOR:
THE MAXIMUM ASSESSED VALUE OF A DWELLING THAT IS
ELIGIBLE FOR THE TAX CREDIT UNDER THIS SECTION;
(1)
(2)
THIS SECTION;
ADDITIONAL ELIGIBILITY CRITERIA FOR THE TAX CREDIT UNDER
REGULATIONS AND PROCEDURES FOR THE APPLICATION AND
UNIFORM PROCESSING OF REQUESTS FOR THE TAX CREDIT; AND
ANY OTHER PROVISION NECESSARY TO CARRY OUT THE TAX
CREDIT UNDER THIS SECTION.
(3)
(4)
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June
1, 2016, and shall be applicable to all taxable years beginning after June 30, 2016.
Approved
by
the Governor,
May
10, 2016.
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