Sec. 10-197. Real property tax deferral for elderly or disabled homeowners

For the tax levy year beginning July 1, 2000, and thereafter, a property owner may defer payment of a portion of County property taxes due on residential real property which is owned in fee simple and is occupied by an eligible owner in accordance with the provisions of this Section.

An owner who has resided in a dwelling as the principal place of residence for five (5) consecutive years is eligible for a payment deferral under this Section if the owner or at least one of the owners:

The gross income or combined gross income of all owners, and all individuals who reside in the dwelling (except a person who pays reasonable fixed charges for rent or room and board), may not exceed $45,000 for the calendar year that immediately precedes the taxable year for which the deferral is sought. For purposes of this subsection, gross income or combined gross income shall be calculated in accordance with Section 9-104 of the Tax-Property Article of the Maryland Code.

The amount of the property eligible for a deferral is limited to the real property on which the residence is located, the curtilage, as determined by the Supervisor of Assessments, and any adjacent unimproved land on the same lot or parcel that is not assessed on the basis of agricultural use.

The amount of tax that may be deferred shall not exceed the increase in the County property tax rate from the date the owner elects to defer the payment of the tax. A deferral shall not be granted for taxes attributable to any improvement to the property not included in the assessed value of the property for the base year in which the tax deferral was granted.

Interest shall accrue on the deferred taxes at the rate of 9% per year.

The cumulative amount of the payment deferral and accrued interest shall be specified in the taxpayer's annual property tax bill. The Director shall record the amount of that deferral in the County tax records. The accumulation of deferred taxes and accrued interest must not exceed 50% of the full cash value of the property, as determined by the Supervisor of Assessments.

A penalty shall not be charged during the period of the deferral on any taxes deferred under this Section.

All taxes deferred and interest accrued on the taxes are a first lien on the property, with the priority of real property taxes, until paid or otherwise extinguished by operation of law. The deferred taxes and accrued interest are collectible by suit or by tax sale, regardless of any period of limitations imposed under law. In addition to being a first lien on the property, the deferred taxes and accrued interest constitutes a personal liability of the owner or owners who obtained the deferral.

Except as otherwise provided in this Subsection, all deferred taxes and accrued interest becomes due and payable if:

An application for a tax deferral under this Section must be submitted to the Director of Finance no later than September 1 of the tax year in which the taxpayer seeks to obtain a tax deferral. Applications shall be on forms prepared by the Director and must be verified as true by the owner or each joint owner. The Director may request information to substantiate eligibility under this Section, including income tax records, and may require a certification by the applicant of all joint owners, persons having an equitable interest in the property and parties having a secured interest in the property. If the applicant is eligible, the Director shall execute a written agreement with the owner or each joint owner before a tax deferral can be made. The agreement must reflect the terms and conditions of the deferral including notice of the lien. The agreement may provide for repayment of the deferred taxes and accrued interest in installments if the owner ceases to occupy the property as that owner's principal residence but maintains ownership. The agreement must be recorded in the land records of the County at the owner's expense.

A taxpayer may terminate the deferral at any time by giving written notice to the Director and paying all deferred taxes and accrued interest. Notice of termination of the deferral must also be recorded in the land records by the County at the owner's expense.

The Director shall notify all mortgagees or beneficiaries under any deed of trust of a payment deferral under this Section and of the amount of tax to be deferred and when participation in the payment deferral program terminates. The Director may rely on any information provided by the taxpayer.

The Director shall provide an annual report to the County Council by January 20 of each year that describes the number of deferrals, aggregate amounts of taxes deferred, interest accrued, and other relevant information.