MD
Maryland House Bill HB1398

Maryland 2022 Regular Session

Maryland House Bill HB1398 Compare Versions

OldNewDifferences
1- LAWRENCE J. HOGAN, JR., Governor Ch. 332
21
3-– 1 –
4-Chapter 332
5-(House Bill 1398)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb1398*
89
9-Property Taxes – Baltimore City Residential Retention Credit – Termination of
10-Sunset
10+HOUSE BILL 1398
11+Q2 2lr3097
1112
12-FOR the purpose of terminating the sunset of a certain property tax credit against the
13-property tax imposed on a certain dwelling in Baltimore City that is newly purchased
14-by a homeowner who has received the homestead property tax credit for a dwelling
15-in Baltimore City; and generally relating to a property tax credit in Baltimore City.
13+By: Delegates Attar, Amprey, Boyce, C. Branch, Bridges, Clippinger, Conaway,
14+R. Lewis, Lierman, McIntosh, Prettyman, Rosenberg, Smith, and Wells
15+Introduced and read first time: February 17, 2022
16+Assigned to: Rules and Executive Nominations
17+Re–referred to: Ways and Means, February 27, 2022
18+Committee Report: Favorable
19+House action: Adopted
20+Read second time: March 13, 2022
1621
17-BY repealing and reenacting, without amendments,
18- Article – Tax – Property
19-Section 9–304(g)
20- Annotated Code of Maryland
21- (2019 Replacement Volume and 2021 Supplement)
22+CHAPTER ______
2223
23-BY repealing and reenacting, with amendments,
24- Chapter 623 of the Acts of the General Assembly of 2014
25-Section 3
24+AN ACT concerning 1
2625
27- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
28-That the Laws of Maryland read as follows:
26+Property Taxes – Baltimore City Residential Retention Credit – Termination of 2
27+Sunset 3
2928
30-Article – Tax – Property
29+FOR the purpose of terminating the sunset of a certain property tax credit against the 4
30+property tax imposed on a certain dwelling in Baltimore City that is newly purchased 5
31+by a homeowner who has received the homestead property tax credit for a dwelling 6
32+in Baltimore City; and generally relating to a property tax credit in Baltimore City. 7
3133
32-9–304.
34+BY repealing and reenacting, without amendments, 8
35+ Article – Tax – Property 9
36+Section 9–304(g) 10
37+ Annotated Code of Maryland 11
38+ (2019 Replacement Volume and 2021 Supplement) 12
3339
34- (g) (1) (i) In this subsection the following words have the meanings
35-indicated.
40+BY repealing and reenacting, with amendments, 13
41+ Chapter 623 of the Acts of the General Assembly of 2014 14
42+Section 3 15
3643
37- (ii) “Director” means the Director of the Department of Finance of
38-Baltimore City.
44+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
45+That the Laws of Maryland read as follows: 17
3946
40- (iii) “Dwelling” has the meaning indicated in § 9–105 of this title.
47+Article – Tax – Property 18
48+ 2 HOUSE BILL 1398
4149
42- (iv) “Homeowner” has the meaning indicated in § 9–105 of this title.
4350
44- (2) The Mayor and City Council of Baltimore City shall grant, by law, a
45-property tax credit under this subsection against the county property tax imposed on a
46-dwelling located in Baltimore City that is newly purchased by a homeowner who has
47-received a credit under § 9–105 of this title for the preceding 5 years for a dwelling located
48-in Baltimore City.
49- Ch. 332 2022 LAWS OF MARYLAND
51+9–304. 1
5052
51-– 2 –
52- (3) (i) To qualify for the credit under this subsection, a homeowner
53-shall submit an application to the Director as provided in this paragraph.
53+ (g) (1) (i) In this subsection the following words have the meanings 2
54+indicated. 3
5455
55- (ii) The application shall be:
56+ (ii) “Director” means the Director of the Department of Finance of 4
57+Baltimore City. 5
5658
57- 1. made on the form that the Director requires; and
59+ (iii) “Dwelling” has the meaning indicated in § 9–105 of this title. 6
5860
59- 2. according to procedures established by the Director.
61+ (iv) “Homeowner” has the meaning indicated in § 9–105 of this title. 7
6062
61- (4) (i) The credit under this subsection is a fixed amount of $4,000 to be
62-applied to the homeowner’s property tax bill over a period of 5 years as follows:
63+ (2) The Mayor and City Council of Baltimore City shall grant, by law, a 8
64+property tax credit under this subsection against the county property tax imposed on a 9
65+dwelling located in Baltimore City that is newly purchased by a homeowner who has 10
66+received a credit under § 9–105 of this title for the preceding 5 years for a dwelling located 11
67+in Baltimore City. 12
6368
64- 1. $1,000 in the first year;
69+ (3) (i) To qualify for the credit under this subsection, a homeowner 13
70+shall submit an application to the Director as provided in this paragraph. 14
6571
66- 2. $900 in the second year;
72+ (ii) The application shall be: 15
6773
68- 3. $800 in the third year;
74+ 1. made on the form that the Director requires; and 16
6975
70- 4. $700 in the fourth year; and
76+ 2. according to procedures established by the Director. 17
7177
72- 5. $600 in the fifth year.
78+ (4) (i) The credit under this subsection is a fixed amount of $4,000 to be 18
79+applied to the homeowner’s property tax bill over a period of 5 years as follows: 19
7380
74- (ii) 1. The Mayor and City Council of Baltimore City may
75-increase the total amount provided under subparagraph (i) of this paragraph by up to an
76-additional $1,000 for a homeowner who purchases a dwelling located within a low or
77-moderate income census tract, as designated from time to time by the U.S. Department of
78-Housing and Urban Development and in which at least 51% of the persons living in the
79-tract are in households earning 80% or less of the area median income.
81+ 1. $1,000 in the first year; 20
8082
81- 2. A homeowner residing within a low or moderate income
82-census tract as described under subsubparagraph 1 of this subparagraph when the
83-homeowner submits an application under paragraph (3) of this subsection shall remain
84-eligible for the increased credit under this subparagraph even if the census tract changes
85-following the date of application and the homeowner would otherwise be ineligible for the
86-increased credit during the 5–year period.
83+ 2. $900 in the second year; 21
8784
88- 3. The Director may establish additional criteria necessary
89-to carry out this subparagraph.
85+ 3. $800 in the third year; 22
9086
91- (5) A homeowner may not receive the credit under this subsection, or a
92-portion of the credit, if, in any year, the application of the credit, or a portion of the credit,
93-would reduce the homeowner’s property tax liability below the homeowner’s property tax
94-liability for the dwelling previously occupied by the homeowner.
87+ 4. $700 in the fourth year; and 23
9588
96- (6) In any year in which a homeowner receives a credit under this
97-subsection, the homeowner may not receive: LAWRENCE J. HOGAN, JR., Governor Ch. 332
89+ 5. $600 in the fifth year. 24
9890
99-– 3 –
91+ (ii) 1. The Mayor and City Council of Baltimore City may 25
92+increase the total amount provided under subparagraph (i) of this paragraph by up to an 26
93+additional $1,000 for a homeowner who purchases a dwelling located within a low or 27
94+moderate income census tract, as designated from time to time by the U.S. Department of 28
95+Housing and Urban Development and in which at least 51% of the persons living in the 29
96+tract are in households earning 80% or less of the area median income. 30
97+ HOUSE BILL 1398 3
10098
101- (i) the local portion of the credit under § 9–105 of this title; or
10299
103- (ii) except for the property tax credit provided under § 9–221 of this
104-title, any other property tax credit provided by Baltimore City.
100+ 2. A homeowner residing within a low or moderate income 1
101+census tract as described under subsubparagraph 1 of this subparagraph when t he 2
102+homeowner submits an application under paragraph (3) of this subsection shall remain 3
103+eligible for the increased credit under this subparagraph even if the census tract changes 4
104+following the date of application and the homeowner would otherwise be ineligible for the 5
105+increased credit during the 5–year period. 6
105106
106- (7) The credit under this subsection may not be transferred to:
107+ 3. The Director may establish additional criteria necessary 7
108+to carry out this subparagraph. 8
107109
108- (i) a person who purchases a dwelling from a homeowner wh o
109-received the credit under this subsection; or
110+ (5) A homeowner may not receive the credit under this subsection, or a 9
111+portion of the credit, if, in any year, the application of the credit, or a portion of the credit, 10
112+would reduce the homeowner’s property tax liability below the homeowner’s property tax 11
113+liability for the dwelling previously occupied by the homeowner. 12
110114
111- (ii) a dwelling that is subsequently purchased by a homeowner who
112-received the credit under this subsection.
115+ (6) In any year in which a homeowner receives a credit under this 13
116+subsection, the homeowner may not receive: 14
113117
114- (8) After the termination of the credit under this subsection, a homeowner
115-is entitled to the local portion of the credit under § 9–105 of this title, which shall be
116-calculated:
118+ (i) the local portion of the credit under § 9–105 of this title; or 15
117119
118- (i) as if the homeowner had received the credit under § 9–105 of this
119-title beginning in the second year the homeowner occupied the dwelling; and
120+ (ii) except for the property tax credit provided under § 9–221 of this 16
121+title, any other property tax credit provided by Baltimore City. 17
120122
121- (ii) based on the full assessed value of the dwelling in each year the
122-homeowner received the credit under this subsection.
123+ (7) The credit under this subsection may not be transferred to: 18
123124
124- (9) (i) Baltimore City shall allocate no more than $3,000,000 for each
125-year that applications for the credit under this subsection are accepted to pay:
125+ (i) a person who purchases a dwelling from a homeowner who 19
126+received the credit under this subsection; or 20
126127
127- 1. the total cost of the credits for the approved applicants
128-during the year for the entire period during which the applicants will receive the credit;
129-and
128+ (ii) a dwelling that is subsequently purchased by a homeowner who 21
129+received the credit under this subsection. 22
130130
131- 2. the cost of administering the credit by the Department of
132-Finance of Baltimore City.
131+ (8) After the termination of the credit under this subsection, a homeowner 23
132+is entitled to the local portion of the credit under § 9–105 of this title, which shall be 24
133+calculated: 25
133134
134- (ii) The Director shall review and approve applications for the credit
135-under this subsection based on:
135+ (i) as if the homeowner had received the credit under § 9–105 of this 26
136+title beginning in the second year the homeowner occupied the dwelling; and 27
136137
137- 1. the date the application was received; and
138+ (ii) based on the full assessed value of the dwelling in each year the 28
139+homeowner received the credit under this subsection. 29
138140
139- 2. the availability of the funds allocated for the credit under
140-subparagraph (i) of this paragraph.
141+ (9) (i) Baltimore City shall allocate no more than $3,000,000 for each 30
142+year that applications for the credit under this subsection are accepted to pay: 31
141143
142- (10) The Department of Finance of Baltimore City may adopt regulations as
143-necessary to carry out this subsection.
144+ 1. the total cost of the credits for the approved applicants 32
145+during the year for the entire period during which the applicants will receive the credit; 33
146+and 34 4 HOUSE BILL 1398
144147
145-Chapter 623 of the Acts of 2014 Ch. 332 2022 LAWS OF MARYLAND
146148
147-– 4 –
148149
149- SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June
150-1, 2014. [It shall remain effective for a period of 10 years and 1 month and, at the end of
151-June 30, 2024, with no further action required by the General Assembly, this Act shall be
152-abrogated and of no further force and effect.]
150+ 2. the cost of administering the credit by the Department of 1
151+Finance of Baltimore City. 2
153152
154- SECTION 2. AND BE IT FURTHER ENACTED, Tha t this Act shall take effect June
155-1, 2022.
153+ (ii) The Director shall review and approve applications for the credit 3
154+under this subsection based on: 4
156155
157-Approved by the Governor, May 12, 2022.
156+ 1. the date the application was received; and 5
157+
158+ 2. the availability of the funds allocated for the credit under 6
159+subparagraph (i) of this paragraph. 7
160+
161+ (10) The Department of Finance of Baltimore City may adopt regulations as 8
162+necessary to carry out this subsection. 9
163+
164+Chapter 623 of the Acts of 2014 10
165+
166+ SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 11
167+1, 2014. [It shall remain effective for a period of 10 years and 1 month and, at the end of 12
168+June 30, 2024, with no further action required by the General Assembly, this Act shall be 13
169+abrogated and of no further force and effect.] 14
170+
171+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 15
172+1, 2022. 16
173+
174+
175+
176+Approved:
177+________________________________________________________________________________
178+ Governor.
179+________________________________________________________________________________
180+ Speaker of the House of Delegates.
181+________________________________________________________________________________
182+ President of the Senate.