Property Tax - Credit for Longtime Residents to Offset Property Tax Rate Increase
If enacted, HB738 would establish a framework to alleviate financial pressures on longstanding homeowners, potentially enhancing stability within communities. The property tax credit would cover 100% of any increase in property tax assessed above an effective property tax rate of $1.10 per $100 of assessment. This measure could protect vulnerable populations, especially senior citizens on fixed incomes, from being priced out of their homes due to escalating real estate taxes.
House Bill 738 proposes a property tax credit aimed at supporting longtime residents of Maryland, specifically targeting individuals who have lived in their homes for at least 30 consecutive years. The bill allows the Mayor and City Council of Baltimore City, as well as the governing bodies of counties and municipal corporations, to grant property tax credits to qualifying homeowners. To be eligible for this credit, homeowners must be at least 60 years old and have a combined income not exceeding $75,000. The bill seeks to provide financial relief as property tax rates increase, particularly in the context of rising housing costs.
While the bill is largely focused on providing support to longtime residents, discussions around its implementation could highlight disparities in tax revenue generation for local governments. Supporters are likely to advocate for the social equity presented by the bill, while detractors may question its financial implications for city and county budgets. There may also be concerns regarding the criteria for eligibility and how effectively the regulations could be enforced to ensure that the benefits are appropriately distributed among qualifying residents.