(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.