§ 11-2-104. REAL PROPERTY TAX DEFERRAL FOR ELDERLY OR DISABLED HOMEOWNERS.

(a)

"Homeowner" defined. In this section, "homeowner" has the meaning indicated in § 11-2-103 of this subtitle.

(b)

Deferral authorized. On and after the tax year beginning July 1, 1992, a homeowner who meets the requirements of this section may defer payment of county property taxes due on residential real property.

(c)

Eligibility.

(1)

(i)

In this subsection, "combined gross income" means the gross income of all individuals who reside in the dwelling.

(ii)

"Combined gross income" does not include the income of an individual who:

1.

Is a dependent of the homeowner under applicable federal law; or

2.

Pays a reasonable amount for rent or room and board.

(2)

A homeowner is eligible for a real property tax payment deferral under this section if:

(i)

The combined gross income in the dwelling is not more than $30,000 per year; and

(ii)

As of July 1 of the applicable tax year, the homeowner, or at least one of the homeowners:

1.

Has owned and occupied the property for the preceding 5 years as the homeowner's principal place of residence and continues to occupy the property for that purpose; and

2.

A.

Is at least 65 years old;

B.

Has been found to be permanently and totally disabled and has qualified for benefits under the Social Security Act, the Railroad Retirement Act, any federal act for members of the United States Armed Forces, or any federal retirement system; or

C.

Has been found by the County Health Officer to be permanently and totally disabled.

(d)

Amount of deferral.

(1)

The amount of county real property taxes that a homeowner may defer for any 1 year is the amount that county taxes due exceed the amount of county real property taxes paid by the homeowner in the preceding taxable year.

(2)

All county real property taxes not deferred are due, payable, and subject to the same interest rates as all county real property taxes.

(e)

Amount of property eligible for deferral.

(1)

The amount of the property eligible for a deferral may not be less than the dwelling and the curtilage, as determined by the supervisor of assessments.

(2)

The accumulation of deferred taxes and accrued interest may not be more than 20% of the assessed value of the property.

(f)

Application and approval.

(1)

(i)

Not later than the June 1st of the tax year for which a homeowner is seeking a real property tax deferral, the homeowner shall file an application for a real property tax deferral on a form prepared and furnished by the Director.

(ii)

The Director may request information to verify eligibility under this section.

(2)

If the Director approves the application, the homeowner and the county shall execute a written agreement on the deferral which shall be recorded in the county land records at the homeowner's expense.

(3)

Relying on information supplied by the applicant, the Director shall notify all mortgagees or beneficiaries under any deed of trust:

(i)

Of a real property tax payment deferral; and

(ii)

Termination of the real property tax payment deferral.

(g)

Deferral is lien on the property. All real property taxes deferred and interest accrued are a lien on the property, with the priority of real property taxes, until paid or otherwise extinguished by operation of law.

(h)

Amount specified on the annual bill. The director shall specify the cumulative amount of the real property tax payment deferral and accrued interest on the annual property tax bill.

(i)

Payment due.

(1)

Except as provided in paragraph (2) of this subsection, the total amount of county real property tax deferred, plus interest, calculated at the rate of 9% per annum, is due and payable if:

(i)

The eligible taxpayer ceases to own the property through sale or other transfer of the property;

(ii)

The eligible taxpayer ceases to occupy the property as the principal place of residence;

(iii)

The property becomes subject to tax sale;

(iv)

The use of the property changes; or

(v)

The eligible taxpayer fails to submit a timely application.

(2)

A surviving spouse, or a spouse in possession of the property under a written separation agreement or a divorce decree who meets the requirements of subsection (c)(2)(ii)1. of this section is eligible for the real property tax deferral under this section.

(j)

Termination by the taxpayer. A taxpayer may terminate the real property tax payment deferral at any time by giving written notice to the Director and paying all deferred taxes and accrued interest.

(1988 Code, § 33-36) (Bill No. 169, 1991, § 1, 12-9-1991; Bill No. 49-96, § 20, 7-1-1996; Bill No. 33-03, § 2, 7-1-2004)