A "homestead property tax credit" is provided in Tax-Property Article §9-105 for a homeowner's principal residence which is subject
to certain percentage increases in assessment over the previous taxable year. The credit is based on the amount by which the current year's taxable
assessment exceeds the prior year by 110% for State tax purposes and the same or a lesser percentage for local tax purposes as adopted by the County
government or municipal corporations.
The credit is available on only one "principal residence", and the homeowner must actually occupy or expect to occupy the dwelling for more than 6
months of a 12 month period beginning with the date of finality and including July 1 for the taxable year for which this credit is sought. In cases
where spouses own two dwellings and claim each occupies one of the residences, the credit will be granted only on the one property used as the
principal residence unless the couple is legally separated. There have been several court cases involving tax credits as well as Internal Revenue
Service Regulations holding that the "notion of marriage" would be contravened to allow more than one residence.
"Principal residence" has been
defined to mean the "one dwelling
where the homeowner regularly resides
and is the location designated by the
owner for the legal purposes of voting,
obtaining a driver's license, and filing
income tax returns." COMAR 18.07.03.01(B)(3).
The Department has the right to request
information in a sworn affidavit to verify
residency. §2-218(A) Tax-Property Article
(1995). The homeowner must have a sufficient
legal interest in the property, and legal
title in a homeowner controlled corporation
does not meet the statutory test. Homestead
eligibility questions should be directed
to the Associate Director.
The Department will attempt to verify homeowner occupancy through several means including the presentation of the initial recording of the deed, the triennial
physical inspection, and the principal residence designation shown on the assessment notice and property tax bill. The attached letter will be used when the
mailing and premise addresses do not match, or there is any other cause to verify the owner occupancy status of the property. By law, the failure of the
property owner to provide the requested information within 30 days from the date of the request will result in the dwelling being designated as not a principal
residence. §2-218(C) Tax-Property Article.
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