MD
Maryland House Bill HB404

Maryland 2023 Regular Session

Maryland House Bill HB404 Compare Versions

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1- WES MOORE, Governor Ch. 530
21
3-– 1 –
4-Chapter 530
5-(House Bill 404)
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+ *hb0404*
89
9-Property Tax – Statewide Optional Credit for Homeowners Who Have Suffered
10-a Hardship Local Homeowners’ Credit Supplement – Limitation on Combined
11-Gross Income
10+HOUSE BILL 404
11+Q1 3lr1537
1212
13-FOR the purpose of authorizing the Mayor and City Council of Baltimore City or the
14-governing body of a county or municipal corporation to grant, by law, a property tax
15-credit against the county or municipal corporation property tax imposed on a
16-dwelling that is owned by a homeowner whose combined gross income exceeds a
17-certain amount if the homeowner demonstrates certain criteria, including that the
18-homeowner suffered a certain hardship; repealing as redundant a provision of law
19-authorizing the same property tax credit in Baltimore County; and generally relating
20-to a statewide optional property tax credit for homeowners who have suffered a
21-hardship authorizing counties and municipal corporations to alter a certain
22-limitation on the combined gross income of a homeowner for purposes of a local
23-supplement to the homeowners’ property tax credit; and generally relating to local
24-supplements to the homeowners’ property tax credit.
13+By: Delegates Feldmark, Ebersole, Hill, D. Jones, Lehman, Ruth, Shetty, and
14+Smith Smith, Henson, Palakovich Carr, Vogel, Wells, and Wilkins
15+Introduced and read first time: January 27, 2023
16+Assigned to: Ways and Means
17+Committee Report: Favorable with amendments
18+House action: Adopted
19+Read second time: March 6, 2023
2520
26-BY repealing
27- Article – Tax – Property
28-Section 9–305(h)
29- Annotated Code of Maryland
30- (2019 Replacement Volume and 2022 Supplement)
21+CHAPTER ______
3122
32-BY renumbering
33- Article – Tax – Property
34-Section 9–305(i)
35-to be Section 9–305(h)
36- Annotated Code of Maryland
37- (2019 Replacement Volume and 2022 Supplement)
23+AN ACT concerning 1
3824
39-BY adding to
40- Article – Tax – Property
41-Section 9–268
42- Annotated Code of Maryland
43- (2019 Replacement Volume and 2022 Supplement)
25+Property Tax – Statewide Optional Credit for Homeowners Who Have Suffered 2
26+a Hardship Local Homeowners’ Credit Supplement – Limitation on Combined 3
27+Gross Income 4
4428
45-BY repealing and reenacting, with amendments,
46- Article – Tax – Property
47- Section 9–215 and 9–215.1
48- Annotated Code of Maryland
49- (2019 Replacement Volume and 2022 Supplement) Ch. 530 2023 LAWS OF MARYLAND
29+FOR the purpose of authorizing the Mayor and City Council of Baltimore City or the 5
30+governing body of a county or municipal corporation to grant, by law, a property tax 6
31+credit against the county or municipal corporation property tax imposed on a 7
32+dwelling that is owned by a homeowner whose combined gross income exceeds a 8
33+certain amount if the homeowner demonstrates certain criteria, including that the 9
34+homeowner suffered a certain hardship; repealing as redundant a provision of law 10
35+authorizing the same property tax credit in Baltimore County; and generally relating 11
36+to a statewide optional property tax credit for homeowners who have suffered a 12
37+hardship authorizing counties and municipal corporations to alter a certain 13
38+limitation on the combined gross income of a homeowner for purposes of a local 14
39+supplement to the homeowners’ property tax credit; and generally relating to local 15
40+supplements to the homeowners’ property tax credit. 16
5041
51-– 2 –
42+BY repealing 17
43+ Article – Tax – Property 18
44+Section 9–305(h) 19
45+ Annotated Code of Maryland 20
46+ (2019 Replacement Volume and 2022 Supplement) 21
5247
53- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
54-That Section(s) 9–305(h) of Article – Tax – Property of the Annotated Code of Maryland be
55-repealed.
48+BY renumbering 22 2 HOUSE BILL 404
5649
57- SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 9 –305(i) of Article
58-– Tax – Property of the Annotated Code of Maryland be renumbered to be Section(s)
59-9–305(h).
6050
61- SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
62-as follows:
51+ Article – Tax – Property 1
52+Section 9–305(i) 2
53+to be Section 9–305(h) 3
54+ Annotated Code of Maryland 4
55+ (2019 Replacement Volume and 2022 Supplement) 5
6356
64-Article – Tax – Property
57+BY adding to 6
58+ Article – Tax – Property 7
59+Section 9–268 8
60+ Annotated Code of Maryland 9
61+ (2019 Replacement Volume and 2022 Supplement) 10
6562
66-9–268.
63+BY repealing and reenacting, with amendments, 11
64+ Article – Tax – Property 12
65+ Section 9–215 and 9–215.1 13
66+ Annotated Code of Maryland 14
67+ (2019 Replacement Volume and 2022 Supplement) 15
6768
68- (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
69-INDICATED.
69+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
70+That Section(s) 9–305(h) of Article – Tax – Property of the Annotated Code of Maryland be 17
71+repealed. 18
7072
71- (2) “COMBINED INCOME ” HAS THE MEANING STAT ED IN § 9–104 OF
72-THIS TITLE.
73+ SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 9 –305(i) of Article 19
74+– Tax – Property of the Annotated Code of Maryland be renumbered to be Section(s) 20
75+9–305(h). 21
7376
74- (3) “DWELLING” HAS THE MEANING STAT ED IN § 9–104 OF THIS
75-TITLE.
77+ SECTION 3. AND BE IT FURTHER ENACTE D, That the Laws of Maryland read 22
78+as follows: 23
7679
77- (4) “HARDSHIP” MEANS:
80+Article – Tax – Property 24
7881
79- (I) AN ILLNESS OR ACCIDE NT–RELATED INJURY OF A
80-HOMEOWNER OR A MEMBE R OF THE HOMEOWNER ’S IMMEDIATE FAMILY ; OR
82+9–268. 25
8183
82- (II) A PROPERTY CASUALTY EVENT AT THE HOMEOWN ER’S
83-DWELLING.
84+ (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 26
85+INDICATED. 27
8486
85- (5) “HOMEOWNER ” HAS THE MEANING STAT ED IN § 9–104 OF THIS
86-TITLE.
87+ (2) “COMBINED INCOME ” HAS THE MEANING STAT ED IN § 9–104 OF 28
88+THIS TITLE. 29
8789
88- (B) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE
89-GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY GRAN T, BY LAW,
90-A PROPERTY TAX CREDI T AGAINST THE COUNTY OR MUNICIPAL CORPORA TION
91-PROPERTY TAX IMPOSED ON A DWELLING THAT I S OWNED BY A HOMEOWNER WHOSE
92-COMBINED INCOME EXCE EDS $60,000 IF THE HOMEOWNER DEM ONSTRATES THAT :
93- WES MOORE, Governor Ch. 530
90+ (3) “DWELLING” HAS THE MEANING STATED IN § 9–104 OF THIS 30
91+TITLE. 31
9492
95-– 3 –
96- (1) THE HOMEOWNER WAS DE NIED THE PROPERTY TA X CREDIT
97-UNDER § 9–104 OF THIS TITLE FOR HA VING A COMBINED INCO ME THAT EXCEEDS
98-$60,000;
93+ (4) “HARDSHIP” MEANS: 32
9994
100- (2) THE HOMEOWNER SUFFER ED A HARDSHIP IN THE CALE NDAR
101-YEAR THAT PRECEDES T HE YEAR IN WHICH THE HOMEOWNER APPLIES FO R THE
102-CREDIT;
95+ (I) AN ILLNESS OR ACCIDE NT–RELATED INJURY OF A 33
96+HOMEOWNER OR A MEMBE R OF THE HOMEOWNER ’S IMMEDIATE FAMILY ; OR 34 HOUSE BILL 404 3
10397
104- (3) THE HOMEOWNER PAID O R INCURRED EXPENSES RELATING TO
105-THE HARDSHIP THAT RE SULTED IN SIGNIFICAN T FINANCIAL DISTRESS FOR THE
106-HOMEOWNER ; AND
10798
108- (4) THE HO MEOWNER’S COMBINED INCOME WO ULD NOT HAVE
109-EXCEEDED $60,000 IF NOT FOR EXPENSES RELATED TO THE HARDS HIP.
11099
111- (C) THE HOMEOWNER SHALL I NCLUDE, IN THE FORM REQUIRED BY THE
112-MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING BODY OF THE
113-COUNTY OR MUNICIPAL CORPORATION , AN ITEMIZED LIST OF ALL SOURCES OF
114-INCOME AND EXPENSES OF THE HOMEOWNER , INCLUDING EXPENSES R ELATED TO
115-THE HARDSHIP .
100+ (II) A PROPERTY CASUALTY EVENT AT THE HOMEOWN ER’S 1
101+DWELLING. 2
116102
117- (D) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE
118-GOVERNING BODY OF TH E COUNTY OR MUNICIPA L CORPORATION MAY ES TABLISH,
119-BY LAW:
103+ (5) “HOMEOWNER” HAS THE MEANING STAT ED IN § 9–104 OF THIS 3
104+TITLE. 4
120105
121- (1) THE AMOUNT AND DURAT ION OF THE TAX CREDI T;
106+ (B) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 5
107+GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY GRAN T, BY LAW, 6
108+A PROPERTY TAX CREDI T AGAINST THE COUNTY OR MUNICIPAL CORPORA TION 7
109+PROPERTY TAX IMPOSED ON A DWELLING THAT I S OWNED BY A HOMEOWN ER WHOSE 8
110+COMBINED INCOME EXCE EDS $60,000 IF THE HOMEOWNER DEM ONSTRATES THAT : 9
122111
123- (2) ADDITIONAL ELIGIBILI TY CRITERIA FOR THE TAX CREDIT;
112+ (1) THE HOMEOWNER WAS DE NIED THE PROPERTY TA X CREDIT 10
113+UNDER § 9–104 OF THIS TITLE FOR HA VING A COMBINED INCO ME THAT EXCEEDS 11
114+$60,000; 12
124115
125- (3) REGULATIONS AND PROC EDURES FOR THE APPLI CATION AND
126-UNIFORM PROCESSING O F REQUESTS FOR THE T AX CREDIT; AND
116+ (2) THE HOMEOWNER SUFFER ED A HARDSHIP IN THE CALENDAR 13
117+YEAR THAT PRECEDES T HE YEAR IN WHICH THE HOMEOWNER APPLIES FO R THE 14
118+CREDIT; 15
127119
128- (4) ANY OTHER PROVISIO N NECESSARY TO CARRY OUT THE TAX
129-CREDIT.
120+ (3) THE HOMEOWNER PAID O R INCURRED EXPENSES RELATING TO 16
121+THE HARDSHIP THAT RE SULTED IN SIGNIFICAN T FINANCIAL DISTRESS FOR THE 17
122+HOMEOWNER ; AND 18
130123
131-9–215.
124+ (4) THE HOMEOWNER ’S COMBINED INCOME WO ULD NOT HAVE 19
125+EXCEEDED $60,000 IF NOT FOR EXPENSES RELATED TO THE HARDS HIP. 20
132126
133- (a) The Mayor and City Council of Baltimore City or the governing body of a
134-county may grant, by law, a local supplement to the Homeowners Property Tax Credit
135-Program provided under § 9–104 of this title.
127+ (C) THE HOMEOWNER SHALL I NCLUDE, IN THE FORM REQUIRED BY THE 21
128+MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE GOVERNING BOD Y OF THE 22
129+COUNTY OR MUNICIPAL CORPORATION , AN ITEMIZED LIST OF ALL SOURCES OF 23
130+INCOME AND EXPENSES OF THE HOMEOWNER , INCLUDING EXPENSES R ELATED TO 24
131+THE HARDSHIP . 25
136132
137- (b) The county or Baltimore City may not obtain reimbursement under § 9–104(s)
138-of this title for the amount of the local supplement authorized under this section.
139- Ch. 530 2023 LAWS OF MARYLAND
133+ (D) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 26
134+GOVERNING BODY OF THE COUNTY OR MUNICI PAL CORPORATION MAY ESTABLISH, 27
135+BY LAW: 28
140136
141-– 4 –
142- (c) The county shall notify the Department of the enactment of the local
143-supplement and any change in the local supplement in accordance with any guidelines
144-specified by the Department.
137+ (1) THE AMOUNT AND DURAT ION OF THE TAX CREDI T; 29
145138
146- (d) (1) The Department is responsible for the administrative duties that relate
147-to the application and determination of eligibility for a property tax credit under this
148-section.
139+ (2) ADDITIONAL ELIGIBILI TY CRITERIA FOR THE TAX CREDIT; 30
149140
150- (2) The county shall reimburse the Department for the reasonable cost of
151-administering the Tax Credit Program under this section.
141+ (3) REGULATIONS AND PROC EDURES FOR THE APPLI CATION AND 31
142+UNIFORM PROCESSING O F REQUESTS FOR THE TAX CREDIT ; AND 32 4 HOUSE BILL 404
152143
153- (e) (1) Except as provided in paragraph (2) of this subsection, the local
154-supplement authorized in accordance with subsection (a) of this section shall be subject to
155-the provisions of the State Homeowners Property Tax Credit Program provided under §
156-9–104 of this title.
157144
158- (2) The Mayor and City Council of Baltimore City or the governing body of
159-a county:
160145
161- (i) may alter, by law, the following provisions for purposes of a local
162-supplement granted under this section:
146+ (4) ANY OTHER PROVISION NECESSARY TO CARRY O UT THE TAX 1
147+CREDIT. 2
163148
164- 1. the limitation on the assessed value of a dwelling taken
165-into account in determining total real property tax under § 9–104(a)(13) of this title;
149+9–215. 3
166150
167- 2. the percentages and combined income levels specified
168-under § 9–104(g) of this title; and
151+ (a) The Mayor and City Council of Baltimore City or the governing body of a 4
152+county may grant, by law, a local supplement to the Homeowners Property Tax Credit 5
153+Program provided under § 9–104 of this title. 6
169154
170- 3. the limitation on combined net worth OR COMB INED
171-GROSS INCOME of the homeowner under § 9–104(j) of this title; and
155+ (b) The county or Baltimore City may not obtain reimbursement under § 9–104(s) 7
156+of this title for the amount of the local supplement authorized under this section. 8
172157
173- (ii) may provide, by law, for limitations on eligibility for a local
174-supplement granted under this section in addition to the requirements for eligibility under
175-§ 9–104 of this title.
158+ (c) The county shall notify the Department of the enactment of the local 9
159+supplement and any change in the local supplement in accordance with any guidelines 10
160+specified by the Department. 11
176161
177- (3) The additional eligibility criteria provided under paragraph (2)(ii) of
178-this subsection may include:
162+ (d) (1) The Department is responsible for the administrative duties that relate 12
163+to the application and determination of eligibility for a property tax credit under this 13
164+section. 14
179165
180- (i) criteria limiting eligibility for a local supplement granted under
181-this section to homeowners:
166+ (2) The county shall reimburse the Department for the reasonable cost of 15
167+administering the Tax Credit Program under this section. 16
182168
183- 1. who have reached a certain age;
169+ (e) (1) Except as provided in paragraph (2) of this subsection, the local 17
170+supplement authorized in accordance with subsection (a) of this section shall be subject to 18
171+the provisions of the State Homeowners Property Tax Credit Program provided under § 19
172+9–104 of this title. 20
184173
185- 2. who have resided in their dwellings for more than a
186-certain number of years; or
187- WES MOORE, Governor Ch. 530
174+ (2) The Mayor and City Council of Baltimore City or the governing body of 21
175+a county: 22
188176
189-– 5 –
190- 3. whose assessments have increased more than a certain
191-percentage over a certain period of time;
177+ (i) may alter, by law, the following provisions for purposes of a local 23
178+supplement granted under this section: 24
192179
193- (ii) any combination of the criteria specified in item (i) of this
194-paragraph; and
180+ 1. the limitation on the assessed value of a dwelling taken 25
181+into account in determining total real property tax under § 9–104(a)(13) of this title; 26
195182
196- (iii) any additional criteria for eligibility that the Mayor and City
197-Council of Baltimore City or the governing body of a county determine to be necessary or
198-appropriate.
183+ 2. the percentages and combined income levels specified 27
184+under § 9–104(g) of this title; and 28
199185
200-9–215.1.
186+ 3. the limitation on combined net worth OR COMBINED 29
187+GROSS INCOME of the homeowner under § 9–104(j) of this title; and 30
201188
202- (a) The governing body of a municipal corporation may grant, by law, a local
203-supplement to the Homeowners Property Tax Credit Program provided under § 9–104 of
204-this title.
189+ (ii) may provide, by law, for limitations on eligibility for a local 31
190+supplement granted under this section in addition to the requirements for eligibility under 32
191+§ 9–104 of this title. 33 HOUSE BILL 404 5
205192
206- (b) The municipal corporation may not obtain reimbursement under § 9–104(s) of
207-this title for the amount of the local supplement authorized under this section.
208193
209- (c) The municipal corporation shall notify the Department of the enactment of
210-the local supplement and any change in the local supplement in accordance with any
211-guidelines specified by the Department.
212194
213- (d) The municipal corporation is responsible for the administrative duties that
214-relate to the application, determination of eligibility, and payment of a property tax credit
215-under this section.
195+ (3) The additional eligibility criteria provided under paragraph (2)(ii) of 1
196+this subsection may include: 2
216197
217- (e) The amount of the local supplement authorized in accordance with subsection
218-(a) of this section shall not exceed the net property tax liability due after providing for any
219-State property tax credit authorized under § 9–104 of this title and any local supplement
220-to the homeowners property tax credit authorized under § 9–215 of this subtitle.
198+ (i) criteria limiting eligibility for a local supplement granted under 3
199+this section to homeowners: 4
221200
222- (f) (1) Except as provided in paragraph (2) of this subsection, the local
223-supplement authorized in accordance with subsection (a) of this section shall be subject to
224-the provisions of the State Homeowners Property Tax Credit Program provided under §
225-9–104 of this title.
201+ 1. who have reached a certain age; 5
226202
227- (2) The governing body of a municipal corporation:
203+ 2. who have resided in their dwellings for more than a 6
204+certain number of years; or 7
228205
229- (i) may alter, by law, the following provisions for purposes of a local
230-supplement granted under this section:
206+ 3. whose assessments have increased more than a certain 8
207+percentage over a certain period of time; 9
231208
232- 1. the limitation on the assessed value of a dwelling taken
233-into account in determining total real property tax under § 9–104(a)(13) of this title;
234- Ch. 530 2023 LAWS OF MARYLAND
209+ (ii) any combination of the criteria specified in item (i) of this 10
210+paragraph; and 11
235211
236-– 6 –
237- 2. the percentages and combined income levels specified
238-under § 9–104(h) of this title; and
212+ (iii) any additional criteria for eligibility that the Mayor and City 12
213+Council of Baltimore City or the governing body of a county determine to be necessary or 13
214+appropriate. 14
239215
240- 3. the limitation on combined net worth OR COMBINED
241-GROSS INCOME of the homeowner under [§ 9–104(k)] § 9–104(J) of this title; and
216+9–215.1. 15
242217
243- (ii) may provide, by law, for limitations on eligibility for a local
244-supplement granted under this section in addition to the requirements for eligibility under
245-§ 9–104 of this title.
218+ (a) The governing body of a municipal corporation may grant, by law, a local 16
219+supplement to the Homeowners Property Tax Credit Program provided under § 9–104 of 17
220+this title. 18
246221
247- (3) The additional eligibility criteria provided under paragraph (2)(ii) of
248-this subsection may include:
222+ (b) The municipal corporation may not obtain reimbursement under § 9–104(s) of 19
223+this title for the amount of the local supplement authorized under this section. 20
249224
250- (i) criteria limiting eligibility for a local supplement granted under
251-this section to homeowners:
225+ (c) The municipal corporation shall notify the Department of the enactment of 21
226+the local supplement and any change in the local supplement in accordance with any 22
227+guidelines specified by the Department. 23
252228
253- 1. who have reached a certain age;
229+ (d) The municipal corporation is responsible for the administrative duties that 24
230+relate to the application, determination of eligibility, and payment of a property tax credit 25
231+under this section. 26
254232
255- 2. who have resided in their dwelling for more than a certain
256-number of years; or
233+ (e) The amount of the local supplement authorized in accordance with subsection 27
234+(a) of this section shall not exceed the net property tax liability due after providing for any 28
235+State property tax credit authorized under § 9–104 of this title and any local supplement 29
236+to the homeowners property tax credit authorized under § 9–215 of this subtitle. 30
257237
258- 3. whose assessments have increased more than a certain
259-percentage over a certain period of time;
238+ (f) (1) Except as provided in paragraph (2) of this subsection, the local 31
239+supplement authorized in accordance with subsection (a) of this section shall be subject to 32 6 HOUSE BILL 404
260240
261- (ii) any combination of the criteria specified in item (i) of this
262-paragraph; and
263241
264- (iii) any additional criteria for eligibility that the governing body of a
265-municipal corporation determines to be necessary or appropriate.
242+the provisions of the State Homeowners Property Tax Credit Program provided under § 1
243+9–104 of this title. 2
266244
267- SECTION 4. 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
268-June 1, 2023, and shall be applicable to all taxable years beginning after June 30, 2023.
245+ (2) The governing body of a municipal corporation: 3
269246
270-Approved by the Governor, May 8, 2023.
247+ (i) may alter, by law, the following provisions for purposes of a local 4
248+supplement granted under this section: 5
249+
250+ 1. the limitation on the assessed value of a dwelling taken 6
251+into account in determining total real property tax under § 9–104(a)(13) of this title; 7
252+
253+ 2. the percentages and combined income levels specified 8
254+under § 9–104(h) of this title; and 9
255+
256+ 3. the limitation on combined net worth OR COMBINED 10
257+GROSS INCOME of the homeowner under [§ 9–104(k)] § 9–104(J) of this title; and 11
258+
259+ (ii) may provide, by law, for limitations on eligibility for a local 12
260+supplement granted under this section in addition to the requirements for eligibility under 13
261+§ 9–104 of this title. 14
262+
263+ (3) The additional eligibility criteria provided under paragraph (2)(ii) of 15
264+this subsection may include: 16
265+
266+ (i) criteria limiting eligibility for a local supplement granted under 17
267+this section to homeowners: 18
268+
269+ 1. who have reached a certain age; 19
270+
271+ 2. who have resided in their dwelling for more than a certain 20
272+number of years; or 21
273+
274+ 3. whose assessments have increased more than a certain 22
275+percentage over a certain period of time; 23
276+
277+ (ii) any combination of the criteria specified in item (i) of this 24
278+paragraph; and 25
279+
280+ (iii) any additional criteria for eligibility that the governing body of a 26
281+municipal corporation determines to be necessary or appropriate. 27
282+
283+ SECTION 4. 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
284+June 1, 2023, and shall be applicable to all taxable years beginning after June 30, 2023. 29
285+