Agenda Item 9
November 15,2016
Public Hearing
MEMORANDUM
November 10,2016
TO:
FROM:
SUBJECT:
County Council
Amanda Mihill, Legislative Attorney
~
Public Hearing:
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, was introduced on October 18, 2016. A Government
Operations and Fiscal Policy Committee work session is tentatively scheduled for December 12 at
11:00 a.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
Circle #
1
4
5
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Bill No.
42-16
Concerning: Taxation - Property Tax
Credit - Elderly Individuals and
Veterans
Draft No. 4
Revised:
10/1312016
Introduced:
October 18. 2016
Expires:
April 18, 2018
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _----:-_ _ _ _ _ _ __
Sunset Date:
_N:....:.o=n~e":---:::---
_ _ __
Ch, _ _, Laws of Mont. Co. _ __
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 brackets]]
* * *
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.
I.
Section· 52-110 is added as follows:
52-110. Property tax credit elderly individuals and veterans.
2
3
4
=
ill
Definitions.
In this Section, the following words have the meanings
indicated:
Department
means the Department of Finance.
Director
means the Director of the Department or the Director's
5
6
7
8
9
10
11
designee.
Dwelling
has the same meaning as in §9-105 of the Tax-Property Article
.
ofthe Maryland Code.
(Q)
Credit.
As authorized
Qy
§9-257 of the Tax-Property Article of the
Maryland Code, an eligible individual may receive
~
credit against the
12
13
14
15
16
17
18
County property tax imposed on the dwelling of an eligible individual.
ill
Eligibility.
An
individual is eligible to receive
~
property
tax
credit if:
ill
the individual is at least 65 years old and:
CA)
has lived in the same dwelling for at least the preceding 40
years; or
tID
ill
@
is
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retired member of the United States armed forces; and
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the dwelling for which
property tax credit is sought has
~
19
20
maximum assessed value of $500,000.
Amount and duration
gf
credit.
21
ill
ill
The credit allowed under this Section is 20% of the county
property
tax
imposed on the dwelling.
The credit must be granted each year for
remains eligible for the credit.
22
23
24
l
years if the individual
o
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BILL
No.
42-16
25
26
UD
Application.
ill
A
property owner must submit an application to the Director on or
27
before the date that the Director sets for each year that the
individual remains eligible for the credit.
28
29
30
31
ill
An
application must:
(A)
be on the form that the Director requires; and
demonstrate that the taxpayer is entitled to the credit.
ill}
32
Regulations.
The County Executive may issue regulations under Method
33
2.
to administer this tax credit.
Approved:
34
35
Nancy Floreen, President, County Council
Date
36
Approved:
37
Isiah Leggett, County Executive
Date
38
39
This is a correct copy o/Council action.
Linda M. Lauer, Clerk of the Council
Date
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LEGISLATIVE REQUEST REPORT
Bill 42-16
Taxation
-
Property Tax Credit
-
Elderly Individuals and Veterans
DESCRIPTION:
Bill
42-16
would create a property tax credit for certain elderly
individuals and veterans and provide for the eligibility for the property
tax credit.
During the
2016
legislative session, the General Assembly enacted,
and the Governor signed, House Bill
898
which authorized local
governments to provide for a property tax credit for certain elderly
individuals and veterans.
To implement authority granted by the State.
Finance
To be requested.
To be requested.
To be requested.
To be researched.
Amanda Mihill, Legislative Attorney,
240-777-7815
Taxes and credits apply countywide
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
NI
A
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LAWRENCE
J.
HOGAN,
JR.,
Governor
Chapter 498
Ch.498
(House Bill 898)
AN ACT concerning
Property Tax Credit - Elderly Individuals and Veterans
FOR the purpose of authorizing the Mayor and City Council of Baltimore City and the
governing body of a county or municipal corporation to provide a property tax credit
against the county or municipal corporation property tax imposed on the dwelling of
certain individuals who are elderly or veterans; providing for the amount and
duration of the tax credit; authorizing the Mayor and City Council of Baltimore City
and the governing body of a county or municipal corporation to provide for
c~rtain
matters relating to the tax credit; defining certain terms; providing for the
application of this Act; and generally relating to a property tax credit for certain
individuals who are elderly or veterans.
BY adding to
Article - Tax - Property
Section 9-257
Annotated Code of Maryland
(2012 Replacement Volume and 2015 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article - Tax - Property
9-257.
(A)
(1)
INDICATED.
IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
(2)
TITLE;
"DWELLING" HAS THE MEANING STATED IN
§
9-105
OF THIS
(3)
"ELIGIBLE INDIVIDUAL" MEANS:
(I)
AN INDIVIDUAL WHO IS AT LEAST
65
YEARS OLD AND HAS
LIVED IN THE SAME DWELLING FOR AT LEAST THE PRECEDING
40
YEARS; OR
(II) AN INDIVIDUAL WHO IS AT LEAST
65
YEARS OLD AND IS A
RETIRED MEMBER OF THE ARMED FORCES OF THE UNITED STATES.
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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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