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The County Executive may adopt regulations under method (2) to implement this Article. (2011 L.M.C., ch. 6, § 1; 2016 L.M.C., ch. 7, § 2.)
Any violation of this Article is a Class A civil violation. Each violation is a separate offense. A conviction under this Section does not relieve a retail establishment from paying a remittance owed to the County. (2011 L.M.C., ch. 6, § 1; 2016 L.M.C., ch. 7, § 2.)
ARTICLE X. PROPERTY TAX CREDITS
(a) Eligibility requirements. A property tax credit shall be allowed, upon the application of any homeowner, from total real property taxation upon the dwelling for which application for the tax credit is made; provided, that the homeowner meets the following conditions on or before July 1 of the taxable year for which a tax credit is sought:
(1) The homeowner is not yet sixty (60) years of age.
(2) The homeowner is receiving benefits as a result of a finding of permanent and total disability under the social security act or under the railroad retirement act or under the provisions of federal acts for members of the armed forces of the United States or by an agency of a municipal corporation, county, state or federal government or the District of Columbia; or
(3) The homeowner is not and has not been subject to a disability program of a government or public agency, and the homeowner has been found and certified permanently and totally disabled, and the finding and certification of total and permanent disability is reviewed and approved by the county.
(b) Definitions. For the purposes of this section, the following words and phrases shall have the meanings respectively ascribed to them by this subsection:
Combined income. The combined gross income of all homeowners, if more than one (1), and all persons eighteen (18) years of age or older as of July 1 of the taxable year in which the credit is sought, actually residing in the same dwelling, except persons whose contributions, reasonably apportionable toward the cost of upkeep, maintenance and repair of the dwelling, are in the form of fixed rental charges.
Combined net worth. The total net worth of all homeowners, if more than one (1), and all persons eighteen (18) years of age or older as of July 1 of the taxable year in which the credit is sought, actually residing in the same dwelling, except persons whose contributions, reasonably apportionable for the cost of upkeep, maintenance and repair of the dwelling, are in the form of fixed rental charges.
Dwelling. The dwelling house of one (1) or more homeowners and the lot or curtilage where it is erected, which is used as the principal residence of that homeowner or homeowners. No dwelling shall be deemed a principal residence which is not actually occupied or expected to be actually occupied by the homeowner or homeowners for more than six (6) months of a twelve-month period, including the date of application for tax credit.
Gross income. Total income from all sources for the calendar year immediately preceding the taxable year for which credit is sought, whether or not included in the definitions of gross income for federal or state tax purposes, including but not limited to benefits under the social security act or railroad retirement act as amended, gifts in excess of three hundred dollars ($300.00), alimony, support money, nontaxable strike benefits, public assistance received in cash grants, pensions or annuities, unemployment insurance benefits, and workmen’s compensation benefits. Gross income shall include the net income received from business, rental or other endeavors; but in no event shall a loss from business, rental or other endeavors be used in the determination of gross income.
Homeowner. Every person who, by July 1 of the taxable year for which tax credit is sought, actually resides in a dwelling in which such person has a legal interest, including any life estate, whether as sole owner, joint tenant in common or tenant by the entireties, or through membership in a cooperative. A homeowner, otherwise eligible, may qualify for the credit if he does not actually reside in the dwelling for the required time period because of illness or need of special care. A homeowner or homeowners may claim credit on only one (1) dwelling. When any property which is owned by a person who is entitled to a tax credit under this section is sold to a purchaser, the tax credit shall be terminated as of the date of transfer of the property between the parties. The total amount of any tax credit shall be included in the amount of ordinary taxes which were paid by the seller of the property and which are adjusted at the time of settlement for the property between the seller and the purchaser. The seller of the property shall receive credit only for that proportion of the tax credit which his period of ownership of the property during the taxable year in which the transfer occurs bears to the entire taxable year. The remaining portion of the tax credit shall be paid by the seller to the county and shall be deposited into general funds of the county.
Net worth. The sum of the values of assets, including but not limited to cash, savings accounts, stocks, bonds and other investments, less outstanding liabilities, plus the excess of current market value of real property owned over the outstanding indebtedness of each such property. The cash surrender value of life insurance policies and the fair market value of personal property are excluded.
Total real property taxes. The total of all real property taxes, including state, county, municipal and special districts for which the homeowner has a real property tax liability on the dwelling for the taxable year. The real property tax liability shall be prior to any discounts for payment and shall be calculated on the assessed valuation of the dwelling or thirty thousand dollars ($30,000.00) of assessed valuation, whichever is less.
(c) Amount; application; appeal. A property tax credit, not to exceed seven hundred fifty dollars ($750.00), shall be allowed upon the application of any eligible homeowner, from total real property taxes upon the dwelling for which application for the tax credit is made. The tax credit shall be equal to the amount of total real property taxes in excess of a percentage of the gross income or combined gross income, as the case may be, of the homeowner. This percentage shall equal three (3) percent of the first three thousand dollars ($3,000.00) of combined income, four (4) percent of the next five thousand dollars ($5,000.00) of combined income, five (5) percent of the next four thousand dollars ($4,000.00) of combined income, seven (7) percent of the next three thousand dollars ($3,000.00) of combined income and nine (9) percent of all combined income in excess of fifteen thousand dollars ($15,000.00). The credit shall not be allowed to any homeowner whose net worth is in excess of one hundred fifty thousand dollars ($150,000.00) as of January 1 of the year in which the credit is sought. The percentage of the real property tax assessed by a cooperative against any member shall not exceed the rate of the amount the member paid for his membership to the total cost of all memberships at the time of assessment.
(1) The disabled homeowner may apply for the tax credit no later than September 1 of the taxable year in which the tax credit is sought, on a standard form to be provided by the director of finance. If the application has not been made on or before September 1, the tax credit shall not be allowed. After receipt and review of the application for tax credit as provided hereunder, the director of finance shall either approve or disapprove the application and shall notify the applicant in writing of such decision. If the application is approved, the director shall issue or mail to the homeowner a certificate setting forth the amount of the tax credit.
(2) The application for the tax credit shall be made under oath or affirmation that the matters and facts stated in the application are true to the best of the applicant’s knowledge, information and belief, including a statement that the applicant’s net worth, as defined herein, does not exceed one hundred fifty thousand dollars ($150,000.00). The applicant may be required to provide copies of income tax returns or other evidence of income, interest, dividends, rents, money paid or received or net worth to substantiate the application for the property tax credit.
(3) Any homeowner aggrieved by the decision of the director of finance shall have the right to appeal to the property tax assessment appeal board for the county, which appeal shall be in writing and shall set forth the reasons for the appeal and the grounds for the appeal. An appeal shall be filed with the property tax assessment appeal board within thirty (30) days from the date of the notice of decision by the director of finance. At any hearing proceedings shall be informal and any interested party shall have the right to submit oral or written testimony or documentary evidence without regard to technical rules of evidence.
(d) Additional calculations; funding. Beginning with the 1975-1976 taxable year and for each year thereafter, if the credit authorized under this section is less than the credit which was received in the 1974-1975 taxable year, the homeowner shall receive a credit which is the higher of that credit calculated under this section or on the basis of the law applicable to the 1974-1975 taxable year, using in these calculations the income applicable for the current year. The cost of the credit provided to the taxpayer for total real property taxes under this section shall be funded by the county.
(e) Applicability of State law. The minimum tax credit provided for disabled homeowners under this Section must not be less than the minimum tax credit in Section 9-102 of the Tax-Property Article of the Maryland Code. (Mont. Co. Code 1965, § 84-9; Res. No. 6- 1872; 1969 L.M.C., ch. 40, § 7; 1973 L.M.C., ch. 35, § 1; 1974 L.M.C., ch. 21, § 1; 1974 L.M.C., ch. 29, § 1; 1976 L.M.C., ch. 3, § 1; 2010 L.M.C., ch. 49, § 1; 2016 L.M.C., ch. 7, § 2.)
(a) Definitions. In this section, the following words have the meanings indicated.
(1) The following words have the meanings defined in Section 9-104 of the Tax- Property Article of the Maryland Code:
(A) combined income;
(B) dwelling;
(C) gross income;
(D) homeowner;
(E) home purchaser; and
(F) legal interest.
(2) Assessed value means the adjusted value to which the property tax rate is applied.
(3) Director means the Director of the Department of Finance or the Director’s designee.
(4) Final tax liability means the tax liability for any property tax on the real property of a dwelling less any property tax credit provided under Section 9-104 and any supplemental property tax credit provided under this section.
(5) Section 9-104 means Section 9-104 of the Tax-Property Article of the Maryland Code or any successor provision.
(6) Total real property tax means the product of the sum of all property tax rates on real property, including special service area rates, but not including State and municipal district rates, for the taxable year on a dwelling, multiplied by the lesser of:
(A) $300,000; or
(B) the assessed value of the dwelling reduced by the amount of any assessment on which a property tax credit is granted under Section 9-105; and reduced by and any “save harmless” credit mandated under Section 9-101 of the Tax-Property Article of the Maryland Code.
(b) General.
(1) The Director must provide to homeowners a County property tax credit to supplement the State property tax credit granted under Section 9-104.
(2) Except as otherwise expressly stated in this section or an executive regulation, all eligibility requirements, statutory definitions, restrictions, and application or other procedures which apply to the credit granted under Section 9-104 also apply to the County supplemental property tax credit.
(c) Amount.
(1) The County supplemental property tax credit is the total real property tax on a dwelling, less:
(A) the percentage of the combined gross income of the homeowner calculated under paragraph (2), and
(B) the property tax credit granted under Section 9-104.
(2) The allowable percentage of combined gross income is:
(A) 0% of the first $20,000;
(B) 2% of the next $6,000;
(C) 5% of the next $7,000;
(D) 6.5% of the next $8,500; and
(E) 8% of any combined gross income over $41,500.
(3) The property tax credit for home purchasers is the amount of the credit as calculated under paragraph (1) multiplied by a fraction where the numerator of the fraction is the number of days in the taxable year that the home purchaser actually occupies or expects to actually occupy a dwelling in which the home purchaser has a legal interest, and the denominator is 365 days.
(d) The Council annually, by resolution adopted not later than June 1, may vary either or both:
(1) the specific dollar amount referred to in subsection (a)(6); or
(2) the allowable percentage of combined gross income under subsection (c)(2).
(e) Administration. Administrative duties are performed by the Director, and by the State Department of Assessments and Taxation as provided in Section 9-104 and Section 9- 215 of the Tax-Property Article of the Maryland Code. If a credit is granted under this section, a revised tax bill or a tax voucher may be used to adjust the final tax liability.
(f) Regulations. The County Executive may adopt regulations under Method (2) to administer this section.
(g) Penalties for false and fraudulent information. A person who knowingly submits a false or fraudulent application, or withholds information, to obtain a tax credit under this section has committed a Class A violation. In addition, the person must repay the County for all amounts credited and all accrued interest and penalties that would apply to those amounts as overdue taxes. The County may enforce this subsection by appropriate legal action. A person who violates this subsection is liable for all court costs and expenses of the County in any civil action brought by the County against the violator.
(h) Annual report. The Executive must submit an annual report to the County Council by March 15 of each year describing program participation in the current tax year by income of taxpayers, number and dollar value of tax credits granted under this section, administrative costs, and other relevant information. This report may be contained in the Executive’s recommended operating budget for the next fiscal year. (1996 L.M.C., ch. 5, § 1; 2005 L.M.C., ch. 5, § 1; 2006 L.M.C., ch. 9, § 1; 2013 L.M.C., ch. 4, § 1; 2016 L.M.C., ch. 7, § 2.)
Editor’s note—1998 L.M.C., ch. 11, §1, amending 1996 L.M.C., ch. 5, § 2, reads: “This act applies to the tax years beginning on or after July 1, 1998.” 1996 L.M.C., ch. 5, § 2, was also amended by 1996, ch. 15, § 1, and 1997 L.M.C., ch. 10, §§ 1 and 2.
(a) The Director of Finance must allow a credit against County real property taxes due in each tax year for each property that is an owner-occupied dwelling of a homeowner as defined in Md. Tax-Property Code § 9-105(a), as amended.
(b) The Director must not grant the credit if the Director finds that the property is not an owner-occupied property of a homeowner
(c) The County Council must set the amount or rate of the credit under this Section annually by resolution, adopted no later than the date the Council sets the property tax rates. A public hearing must be held, with at least 15 days’ notice, before the Council adopts a resolution under this Section. The amount or rate of the credit must, in the Council’s judgment, offset some or all of the income tax revenue resulting from a County income tax rate higher than 2.6%. The Council must set the amount of the credit at zero for any tax year in which the rate of the County income tax does not exceed 2.6%.
(d) The Director must take all actions necessary to apply the credit to each eligible taxpayer. A taxpayer need not file an application to receive the credit. If a taxpayer after filing an application with the Director has been erroneously denied the credit, the taxpayer may appeal that denial to the Maryland Tax Court within 30 days after receiving a notice of denial from the Director. (1998 L.M.C., ch. 7, § 1; 2005 L.M.C., ch. 5, § 1; 2016 L.M.C., ch. 7, § 2; 2017 L.M.C., ch. 2, §1.)
(a) Definitions.
Scenic easement shall, for the purpose of this article, be defined to mean a recorded easement creating, imposing or continuing an incorporeal right upon a corporeal right wherein a servitude is placed upon land in private ownership which establishes perpetual control in the grantee to maintain scenic views, natural condition, open spaces, green area, animal refuges or natural habitat or flora and fauna. Such easement shall be created by conveyance and acceptance thereof, under lawful authority in the grantee, to the United States, the state, the county, the Maryland-National Capital Park and Planning Commission or any agency or instrumentality of the aforesaid governmental units established by law.
Editor’s note—The above section is quoted in Abington Center Associates Limited Partnership v. Baltimore County, 115 Md.App. 580, 694 A.2d 165 (1997).
(b) Tax credit generally. A tax credit is hereby permitted to the owner of any land which is certified by the grantee of a scenic easement to be an “open space” or “open area” as defined by subsection (b), section 5-1201, of the Natural Resources article of the Annotated Code of Maryland, 1957 and which is subject to a scenic easement, as defined herein, created by the owner or his predecessors in title in accordance with the basic requirements and standards set forth herein. Such tax credit shall be computed by the director of finance of the county as a percentage of the taxes levied by the county council upon the value of land assessment, exclusive of any improvements thereon, which levy is made to appropriate the general funds of the county.
(c) Basic requirements. To qualify for a tax credit, the following basic requirements must be met:
(1) The property subject to the easement shall not be used for any professional or commercial activities, except such as can be and are in fact conducted from a residential dwelling without alteration of the dwelling; provided, that tracts of land containing in excess of fifty (50) acres may be used for privately owned country clubs, commercial golf courses and golf driving ranges. Agricultural activities, other than timbering, shall be permitted on property subject to such easement.
(2) No advertising signs or billboards shall be displayed or placed upon the land, with the exception of professional name plates and signs larger than two (2) square feet advertising home occupations or products or the sale or lease of the lands.
(3) No mining or industrial activity shall be conducted on the lands.
(4) No tree larger than six (6) inches in diameter and thirty (30) feet in height shall be cut down without the written permission of the grantee or its authorized representative; except, that clearing such land for site improvement, road construction or removing trees for the purpose of protecting utility lines and to eliminate a hazard to persons or property may be exercised without prior permission if no more than ten (10) percent of such trees are to be cut on any acre.
(5) No dump of ashes, trash or any unsightly offensive material shall be placed upon the land; except, that in eroding areas of a drainage system where surface water runoff is destroying the natural ground cover, suitable heavy fill may be so placed as to control and prevent further erosion upon the approval of the grantee, provided such fill is covered by arable soil or humus.
(6) The land shall not be used as a site for any major public utility installations such as electric generating plants, electric power transmission lines, gas generating plants, gas storage tanks, microwave relay stations or telephone exchanges, except as may be approved by the grantee. Nothing in this subsection shall, however, be deemed to prevent the construction or maintenance on, over or under the lands of facilities usual to a residential neighborhood, such as telephone and electric lines, water mains, sewer mains and gas mains, pipes or conduits and necessary related equipment, together with such removal of trees as shall be required for such construction and maintenance.
(d) Standards and categories of credits. If the easement meets the basic requirements set forth above and meets the standards set forth in one of the following two (2) categories, then such property may qualify for the appropriate tax credit:
(1) Underdeveloped land within designated parks or conservation areas.
(A) Amount of Credit. Land subject to an easement meeting the basic requirements, together with the standards set forth in this subsection, may be entitled to a tax credit of up to one hundred (100) percent.
(B) Standards.
(i) Location: The property may be of any size but must be within the boundaries of a park or conservation area as designated on a duly adopted master plan of the Maryland-National Capital Park and Planning Commission.
(ii) Use: Within the boundaries of the scenic easement, no improvement shall be erected or continued other than noncommercial recreational facilities consistent with the preservation of the property in an open and natural state.
(2) Land subject to purchase option.
(A) Amount of Credit. Land subject to an easement meeting the basic requirements, together with the standards set forth in this subsection, may be entitled to a tax credit of up to one hundred (100) percent.
(B) Standards.
(i) Location: The land must be located within park boundaries as designated on a duly adopted master plan of The Maryland- National Capital Park and Planning Commission.
(ii) Use: Such land shall have been made the subject of an option agreement whereby the owner agrees to sell or convey the subject property to any local, county, state or federal government or the Maryland-National Capital Park and Planning Commission in fee simple within a fixed period of time, not exceeding twenty (20) years, at a price less than or equivalent to the fair market value at the time of the execution of the option. Such option agreement shall contain such provisions as may be deemed necessary by the grantee to preserve the land in a natural state or condition.
(e) Determination and duration of tax credit. The tax credit must be allowed as of the taxable year “date of finality” or “semi-annual date of finality,” as defined in Section 1-101 of the Tax-Property Article of the Maryland Code if the Council notifies the Director of Finance that the property, by reason of a conveyance, assignment, deed, or other instrument recorded among the land records of the County, is affected and servient to a scenic easement which:
(1) is irrevocable by its own terms;
(2) creates a perpetual servitude on the land described; and
meets the basic requirements, together with the standards of one of the categories in paragraph (d).
The tax credit authorized under this Article remains in effect for all later tax levies made by the Council.
(f) Valuation, assessment, and condemnation. The valuation and assessment of all property which is entitled to the credit herein allowed shall be made and accomplished in all respects as other real property subject to taxation in the county. In the event such property is even acquired by the exercise of the power of eminent domain, the fair market value of such property shall not be affected by its having been qualified for a tax credit; provided, that if the grantee of the easement purchased the same for a monetary consideration other than or in addition to the tax credit, then in such case the condemnation award shall be reduced by an amount equal to the additional consideration.
(g) Application for tax credit.
(1) The owner of such real property or his duly authorized agent must on or before 60 days before the annual date of finality or semi-annual date of finality, whichever may be applicable, file with the County Council a claim for such tax credit in such form as may be required by the Council. Any application must include a description of the property on which the scenic easement is to be granted and must be signed by all owners, holders of encumbrances, and other parties in interest. The County Council must determine whether the property conforms to and meets the basic requirements and standards of one of the categories provided in paragraph (d). If it does, the applicant must then submit a scenic easement deed and a certificate of title prepared by a member of the bar of the court of appeals of Maryland showing the effect of such easement on the land described therein. Any easement must not be preceded by any prior interest to secure a debt or otherwise which would affect the priority of the easement.
(2) If deemed necessary by the Council, a survey by a registered land surveyor or professional engineer may be required. If required, the survey must show the land described, the location of the improvements thereon, the area of land subject to the easement, and a site location sketch showing its relation to the geographical features which relate to its scenic and open space value. The expense of this survey and the title certificate may be assumed by the grantee or the County Council in its discretion, if a request is made therefor in the original application. The County Council must either accept the scenic easement and grant the tax credit or reject the application and deny the credit. If the Council accepts the easement, the tax credit becomes effective upon recordation of the deed in the land records of the County. The County Council must issue an appropriate notice to be delivered by the landowner to the Director of Finance.
(h) Interpretation. This Article is intended to comply with the intent and purpose of Section 9-208 of the Tax-Property Article of the Maryland Code, and any inconsistency with that Section should be resolved in favor of that Section. If a Court of competent jurisdiction declares any part of this Article legally ineffectual, then the Council intends that the entire Article becomes ineffective. In any event, any tax credit granted under this Article must not be recovered unless that credit was procured by fraud, misrepresentation, or intentional mistake. (Ord. No. 6-193, §§ 1–8; 2010 L.M.C., ch. 49, § 1; 2016 L.M.C., ch. 7, § 2.)
State law reference—Tax credit authorized, Ann. Code of Md., art. 81, § 12E.
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