Maryland 2024 Regular Session

Maryland Senate Bill SB343 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0343
6	6
7	7	SENATE BILL 343
8	8	Q1 4lr1529
9	9	CF HB 44
10	10	By: Senator McCray
11	11	Introduced and read first time: January 12, 2024
12	12	Assigned to: Budget and Taxation
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Renters’ Property Tax Relief and Homeowners’ Property Tax Credit Programs – 2
19	19	Gross Income and Assessed Value Limitations – Alterations 3
20	20
21	21	FOR the purpose of altering the definition of “gross income” to exclude certain public 4
22	22	assistance for purposes of the renters’ property tax relief program and the 5
23	23	homeowners’ property tax credit program; increasing certain combined gross income 6
24	24	limits used to determine eligibility for the tax credits; increasing the maximum 7
25	25	assessed value of a dwelling on which the homeowners’ property tax credit is 8
26	26	calculated; and generally relating to property tax credits for renters and 9
27	27	homeowners. 10
28	28
29	29	BY repealing and reenacting, without amendments, 11
30	30	Article – Tax – Property 12
31	31	Section 9–102(a)(1), (b), and (h)(1) and 9–104(a)(1) and (3), (f), and (g)(1) 13
32	32	Annotated Code of Maryland 14
33	33	(2019 Replacement Volume and 2023 Supplement) 15
34	34
35	35	BY repealing and reenacting, with amendments, 16
36	36	Article – Tax – Property 17
37	37	Section 9–102(a)(6) and (9) and 9–104(a)(8) and (14) and (j)(1) 18
38	38	Annotated Code of Maryland 19
39	39	(2019 Replacement Volume and 2023 Supplement) 20
40	40
41	41	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
42	42	That the Laws of Maryland read as follows: 22
43	43
44	44	Article – Tax – Property 23
45	45
46	46	9–102. 24
47	47
48	48	(a) (1) In this section the following words have the meanings indicated. 25 2 SENATE BILL 343
49	49
50	50
51	51
52	52	(6) (i) “Gross income” means the total income from all sources for the 1
53	53	calendar year that immediately precedes the taxable year, whether or not the income is 2
54	54	included in the definition of gross income for federal or State tax purposes. 3
55	55
56	56	(ii) “Gross income” includes: 4
57	57
58	58	1. any benefit under the Social Security Act or the Railroad 5
59	59	Retirement Act; 6
60	60
61	61	2. the aggregate of gifts over $300; 7
62	62
63	63	3. alimony; 8
64	64
65	65	4. support money; 9
66	66
67	67	5. any nontaxable strike benefit; 10
68	68
69	69	6. [public assistance received in a cash grant; 11
70	70
71	71	7.] a pension; 12
72	72
73	73	[8.] 7. an annuity; 13
74	74
75	75	[9.] 8. any unemployment insurance benefit; 14
76	76
77	77	[10.] 9. any workers’ compensation benefit; and 15
78	78
79	79	[11.] 10. the net income received from a business, rental, or 16
80	80	other endeavor. 17
81	81
82	82	(iii) “Gross income” does not include: 18
83	83
84	84	1. any income tax refund received from the State or federal 19
85	85	government, including any refundable portion of the federal earned income tax credit; [or] 20
86	86
87	87	2. any loss from business, rental, or other endeavor; OR 21
88	88
89	89	3. PUBLIC ASSISTANCE RE CEIVED IN A CASH GRA NT. 22
90	90
91	91	(9) “Renter” means an individual, who during the calendar year for which 23
92	92	the property tax relief under this section is sought, actually occupies a dwelling in which 24
93	93	the individual has a leasehold interest and who: 25
94	94
95	95	(i) is at least 60 years old; 26
96	96	SENATE BILL 343 3
97	97
98	98
99	99	(ii) has been found permanently and totally disabled and has 1
100	100	qualified for benefits under: 2
101	101
102	102	1. the Social Security Act; 3
103	103
104	104	2. the Railroad Retirement Act; 4
105	105
106	106	3. any federal act for members of the United States armed 5
107	107	forces; or 6
108	108
109	109	4. any federal retirement system; 7
110	110
111	111	(iii) has been found permanently and totally disabled by a county 8
112	112	health officer or the Baltimore City Commissioner of Health; or 9
113	113
114	114	(iv) is under the age of 60 years and: 10
115	115
116	116	1. has gross income [below the poverty threshold that is 11
117	117	established by the U.S. Department of Commerce, Bureau of the Census in August of the 12
118	118	previous calendar year] NOT EXCEEDING $70,000; 13
119	119
120	120	2. has 1 or more dependent children under 18 years old living 14
121	121	with the renter; and 15
122	122
123	123	3. does not receive federal or State housing subsidies or 16
124	124	reside in public housing. 17
125	125
126	126	(b) There is a property tax relief program for any renter. 18
127	127
128	128	(h) (1) The property tax relief that a renter may receive under this section is 19
129	129	the assumed property tax on real property less a percentage of the combined income of the 20
130	130	renter. 21
131	131
132	132	9–104. 22
133	133
134	134	(a) (1) In this section the following words have the meanings indicated. 23
135	135
136	136	(3) “Combined income” means the combined gross income of all individuals 24
137	137	who actually reside in a dwelling except an individual who: 25
138	138
139	139	(i) is a dependent of the homeowner under § 152 of the Internal 26
140	140	Revenue Code; or 27
141	141
142	142	(ii) pays a reasonable amount for rent or room and board. 28
143	143
144	144	(8) (i) “Gross income” means the total income from all sources for the 29
145	145	calendar year that immediately precedes the taxable year, whether or not the income is 30 4 SENATE BILL 343
146	146
147	147
148	148	included in the definition of gross income for federal or State tax purposes. 1
149	149
150	150	(ii) “Gross income” includes: 2
151	151
152	152	1. any benefit under the Social Security Act or the Railroad 3
153	153	Retirement Act; 4
154	154
155	155	2. the aggregate of gifts over $300; 5
156	156
157	157	3. alimony; 6
158	158
159	159	4. support money; 7
160	160
161	161	5. any nontaxable strike benefit; 8
162	162
163	163	6. [public assistance received in a cash grant; 9
164	164
165	165	7.] a pension; 10
166	166
167	167	[8.] 7. an annuity; 11
168	168
169	169	[9.] 8. any unemployment insurance benefit; 12
170	170
171	171	[10.] 9. any workers’ compensation benefit; 13
172	172
173	173	[11.] 10. the net income received from a business, rental, or 14
174	174	other endeavor; 15
175	175
176	176	[12.] 11. any withdrawal, payment, or distribution from an 16
177	177	individual retirement account; 17
178	178
179	179	[13.] 12. any withdrawal, payment, or distribution from any 18
180	180	qualified retirement savings plan; and 19
181	181
182	182	[14.] 13. any rent on the dwelling, including the rent from a 20
183	183	room or apartment. 21
184	184
185	185	(iii) “Gross income” does not include: 22
186	186
187	187	1. any income tax refund received from the State or federal 23
188	188	government; [or] 24
189	189
190	190	2. any loss from business, rental, or other endeavor; OR 25
191	191
192	192	3. PUBLIC ASSISTANCE RE CEIVED IN A CASH GRA NT. 26
193	193	SENATE BILL 343 5
194	194
195	195
196	196	(14) (i) “Total real property tax” means the product of the sum of all 1
197	197	property tax rates on real property, including special district tax rates, for the taxable year 2
198	198	on a dwelling, multiplied by the lesser of: 3
199	199
200	200	1. [$300,000] $450,000; or 4
201	201
202	202	2. the assessed value of the dwelling reduced by the amount 5
203	203	of any assessment on which a property tax credit is granted under § 9–105 of this subtitle. 6
204	204
205	205	(ii) “Total real property tax” does not include any adjustment for any 7
206	206	other property tax credit under this title claimed against the property tax imposed on the 8
207	207	dwelling. 9
208	208
209	209	(f) A homeowner who meets the requirements of this section shall be granted the 10
210	210	property tax credit under this section against the property tax imposed on the real property 11
211	211	of the dwelling. 12
212	212
213	213	(g) (1) Except as provided in subsection (h) of this section, the property tax 13
214	214	credit under this section is the total real property tax of a dwelling, less the percentage of 14
215	215	the combined income of the homeowner that is described in paragraph (2) of this subsection. 15
216	216
217	217	(j) (1) A property tax credit under this section may not be granted to a 16
218	218	homeowner whose combined net worth exceeds $200,000 as of December 31 of the calendar 17
219	219	year that precedes the year in which the homeowner applies for the property tax credit or 18
220	220	whose combined gross income exceeds [$60,000] $70,000 in that same calendar year. 19
221	221
222	222	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 20
223	223	1, 2024, and shall be applicable to all taxable years beginning after June 30, 2024. 21
224	224