Property Tax - Homeowners' Property Tax Credit - Definition of Gross Income
Impact
If enacted, SB153 would directly impact the existing property tax laws in Maryland, particularly the provisions concerning homeowners' eligibility for tax credits. By allowing homeowners to exclude specific expenses related to medical care and elder care, the bill promises to enhance the accessibility of the property tax credit for vulnerable individuals. This could result in lower tax burdens for senior citizens and those who incur substantial medical bills, thereby supporting homeownership among these groups.
Summary
Senate Bill 153 seeks to amend the eligibility criteria for the homeowners’ property tax credit in Maryland. The bill primarily focuses on altering the definition of 'gross income' for homeowners. By excluding certain medical and elder care expenses from this definition, the legislation aims to provide financial relief to those who may struggle with property tax payments due to healthcare costs. This change is anticipated to benefit a significant portion of the elderly population and those facing high medical expenses.
Contention
Notably, discussions surrounding SB153 may illuminate varying perspectives regarding its potential economic implications. Proponents argue that by reducing the tax liabilities of homeowners with considerable medical expenses, the bill promotes fiscal equity and supports those facing financial hardships. However, some critics may raise concerns about the fiscal impact on state revenue generated from property taxes or suggest that this change could lead to unintended disparities in tax credit distribution.
"Homeowners' Historic Property Reinvestment Act"; allows homeowners to claim credit against gross income tax for certain costs of rehabilitating historic properties.