(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.)