The County Council passed Bill 42-16 on March 7, which will provide a tax credit for people who are over 65 years of age and who either:
Have owned and lived in the dwelling that they own for at least 40 consecutive years, or
are retired from one of the United States’ armed forces (Air Force, Army, Coast Guard, Marine Corps, Navy).
The owner who is 65 or over and who has owned and lived in the dwelling for at least 40 consecutive years must be on the deed for the property. An owner who is 65 or over and is a military retiree must be on the deed for the property. Not all owners must be over 65, just the one that meets the requirements above. Not all owners must have owned and lived in the dwelling for at least 40 consecutive years, just the one that meets the requirements above. Not all owners must be retired from the U. S. armed forces, just the one that meets the requirements above.
This bill will provide a 20 percent credit, on county property taxes only, only for owner-occupied dwellings for which at least one of the owners meet the eligibility requirements. The credit is granted for five consecutive years, and the credit is not available after that five-year period. There is only one credit; if an owner is 65 or over and has owned and lived in the same dwelling for at least 40 consecutive years, and that owner is also a military retiree, the tax credit is still a 20 percent tax credit on county property taxes only, for five consecutive years.
“Dwelling” refers to the entire property, not just the home on the land; it includes the land. The assessment on a dwelling is therefore the assessment that is shown on the tax bill, as this includes both the home and the land.
For owners that are at least 65 years of age and have owned and lived in the same dwelling for at least 40 consecutive years, the tax credit is only available if the dwelling has an assessment of $650,000 or less, at the time of the application for the credit. If the dwelling is assessed at more than $650,000, then the property is not an eligible property, and no credit will be granted.
For owners that are at least 65 years of age and are military retirees the tax credit is only available if the dwelling has an assessment of $500,000 or less, at the time of the application for the credit. If the dwelling is assessed at more than $500,000, then the property is not an eligible property, and no credit will be granted.
An application must be made each year for the tax credits. The applications will be due on April 1, before the tax year that begins on July 1 of the same calendar year. Tax years begin on July 1 — the 2017 tax year begins on July 1, 2017.
For 2017 taxes only, applications will be accepted until Sept. 1, 2017. To receive a credit for 2017 taxes, one must apply by Sept.1, 2017.
For all other tax years, one must apply by April 1.
This tax credit will not be issued on the annual property tax bill that is sent in July, instead it will be calculated and issued on a subsequent revision of your tax bill, with the tax credit appearing as a line item deduction on the bill. When the tax credit is issued, a revised bill will also be available on https://www2.montgomerycountymd.gov/realpropertytax/default.aspx. At this site one can look up the tax bill by address, by the account number, or by the bill number.
The revised bill amount will also be available by calling MC311 (dial 311 if in the county, and dial 240-777-0311 if calling from outside of Montgomery County).
Please mail your application to:
Department of Finance, Division of Treasury
Attn: Bill 42-16 Tax Credit
255 Rockville Pike, Suite L-15
Rockville, MD 20850