§ 11-2-103. HOMESTEAD PROPERTY TAX CREDIT.

(a)

Definitions.

(1)

In this section the following words have the meanings indicated.

(2)

(i)

"Dwelling" means:

1.

A house that is:

A.

Used as the principal residence of the homeowner; and

B.

Actually occupied or expected to be actually occupied by the homeowner for more than 6 months of a 12-month period beginning with the date of finality for the taxable year for which the property tax credit under this section is sought; and

2.

The lot or curtilage on which the house is erected.

(ii)

"Dwelling" includes:

1.

A condominium unit that is occupied by an individual who has a legal interest in the condominium;

2.

An apartment in a cooperative apartment corporation that is occupied by an individual who has a legal interest in the apartment; and

3.

A part of real property used other than primarily for residential purposes, if the real property is used as a principal residence by an individual who has a legal interest in the real property.

(3)

"Homeowner" means an individual who has a legal interest in a dwelling.

(4)

"Homestead" means a place where an individual's home is.

(5)

"Homestead credit percentage" means the percentage established by the county as a cap on the local property tax.

(6)

"Legal interest" means an interest in a dwelling:

(i)

As a sole owner;

(ii)

As a joint tenant;

(iii)

As a tenant in common;

(iv)

As a tenant by the entireties;

(v)

Through membership in a cooperative;

(vi)

Under a land installment contract, as defined in § 10-101 of the Real Property Article of the Annotated Code of Maryland; or

(vii)

As a holder of a life estate.

(7)

"Taxable assessment" means the assessment on which the county property tax rate was imposed in the preceding taxable year, less the amount of any assessment on which a property tax credit under this section is authorized.

(b)

Application of section.

(1)

If a dwelling is not used primarily for residential purposes, the county shall apply the apportionment provided by the State Department of Assessments and Taxation to the total property assessment between the part of the dwelling that is used for residential purposes and the part of the dwelling that is not used for residential purposes.

(2)

If a homeowner does not reside in a dwelling for the required time period because of illness or need of special care and is otherwise eligible for a property tax credit under this section, the homeowner may qualify for the property tax credit under this section.

(c)

Qualifications.

(1)

The county shall grant a property tax credit under this section for a taxable year unless during the previous taxable year:

(i)

The dwelling was transferred for consideration to new ownership;

(ii)

The value of the dwelling was increased due to a change in the zoning classification of the dwelling;

(iii)

The use of the dwelling was changed substantially;

(iv)

The dwelling was improved extensively; or

(v)

The assessment of the dwelling was clearly erroneous due to an error in calculation or measurement of improvements on the real property.

(2)

A homeowner must reside in the dwelling by July 1 of the taxable year for which the property tax credit under this section is to be allowed.

(3)

A homeowner may claim a property tax credit under this section for only one dwelling.

(4)

If a property tax credit under this section is less than $1 in any taxable year, the county may not grant the tax credit.

(d)

Property tax credit to be granted. If there is an increase in a homeowner's property assessment as calculated under this section, the county shall:

(1)

Grant a homeowner who meets all of the requirements of this section a property tax credit under this section against the county property tax imposed on the real property of the dwelling; and

(2)

Include the property tax credit on the homeowner's property tax bill.

(e)

Calculation of credit.

(1)

Each taxable year, the property tax credit under this section is calculated:

(i)

By multiplying the preceding year's taxable assessment by the homestead credit percentage provided under paragraph (2) of this subsection;

(ii)

By subtracting that amount from the current year's assessment; and

(iii)

If the difference is a positive number, by multiplying the difference by the applicable county property tax rate for the current year.

(2)

On and after July 1, 1991, for each taxable year, the homestead credit percentage for the county property tax is 104%.

(3)

On or before November 15, the county may alter the homestead credit percentage for the taxable year beginning the following July 1.

(1988 Code, § 33-35) (Bill No. 66, 1990, § 1, 7-1-1990; Bill No. 33-03, § 2, 7-1-2004)