Tax - Property (GTP) — Title 10. Property Tax Payment

For purposes of this title, property newly annexed into a municipal corporation during a period shall be treated as initially added to the tax roll for that period.

The imposition of the municipal property tax for a partial year on property newly annexed into a municipal corporation shall have no effect on the tax setoff under § 6-305 or § 6-306 of this article.

Expenses incurred by a county for billing and collecting municipal corporation property taxes for a partial year on property newly annexed into the municipal corporation shall be chargeable to the municipal corporation for which the property taxes are collected.

on or before September 30, if the bill is submitted on or before August 31 of a tax year; or

on or before 30 days after the date the tax bill is received or reasonably should have been received or available if the tax bill is submitted after September 1 of the tax year.

on or before September 30, if the bill is submitted on or before August 31 of a tax year; or

on or before 30 days after the date the tax bill is received or reasonably should have been received or available if the tax bill is submitted after September 1 of the tax year.

January 1 of the taxable year; or

the date after January 1 of the taxable year that the tax bill is received or reasonably should have been received or available.

October 1 of the taxable year; or

the date that the tax bill is received or reasonably should have been received or is available.

April 1 of the taxable year; or

the date that the tax bill is received or reasonably should have been received or is available.

The governing body of Prince George’s County may provide for the payment deferral under subsection (a) of this section to apply to real property rezoned at the initiative of Prince George’s County after July 1, 1974.

The governing body of Howard County may provide for the payment deferral under subsection (a) of this section to apply to real property rezoned at the initiative of Howard County after July 1, 1984.

The governing body of Baltimore County may provide for the payment deferral under subsection (a) of this section to apply to real property rezoned at the initiative of Baltimore County after January 1, 1960.

In this subsection, “staged–development zoning classification” includes M–A–C, L–A–C, E–I–A, I–3, and other similar comprehensive design or staged–development zoning classifications.

Except as provided in paragraph (3) of this subsection and notwithstanding Subtitle 1 of this title, the governing body of Prince George’s County may authorize by law a payment deferral of the county property tax for the owner of undeveloped land that is rezoned for industrial or commercial use under a staged–development zoning classification if:

The governing body of Prince George’s County may not authorize a payment deferral for county property tax for real property located in a development district established under Title 12, Subtitle 2 of the Economic Development Article.

A payment deferral under this section begins on the effective date of the later of:

The payment deferral under this section does not apply to any taxable year before the effective date under paragraph (1)(i) of this subsection.

The payment deferral under this section may not be authorized for more than 5 years and ends when:

If a permit is issued to construct a building on any land that is subject to this section and the remainder of the land meets the acreage requirements of subsection (a)(2)(i) of this section, the county property tax may be deferred on the remainder of the land.

5 years from the deferral; or

when the deferral ends under subsection (c)(1) of this section.

It is found and declared that there exists within Prince George’s County:

Older commercial centers are decaying. A need exists to provide an incentive to property owners to revive the older communities. New business in these areas would bring about new housing and new jobs. The establishment of revitalization districts with the provision of a tax deferral will give property owners an incentive to renovate deteriorating properties.

Subject to paragraph (2) of this subsection, the governing body of Prince George’s County or any municipal corporation within Prince George’s County may by resolution establish revitalization districts for the purpose of encouraging revitalization.

The governing body of Prince George’s County may not establish a revitalization district within the boundaries of a municipal corporation without the approval of the governing body of the municipal corporation.

is substantially renovated after the creation of the revitalization district;

is reassessed as the result of the renovation and is assessed at a higher value than would otherwise have been assessed; and

is eligible for the tax deferral as provided by local law.

establishing criteria for the extent of renovation;

requiring approval of the renovation plan; and

requiring the owner of the property to make application for the deferral.

may apply only to the tax liability increase directly attributable to the value added by the renovation of the property;

may not be granted for a period exceeding 5 years; and

shall constitute a lien on the property until paid in full.

Upon expiration of the deferral, the governing body may provide for payment of the deferred taxes in 1 payment or in annual payments of not more than 5 payments.

Upon transfer of ownership of the property, the governing body may provide for immediate payment of the deferred taxes in 1 payment.

Notwithstanding Subtitle 1 of this title, the governing body of Montgomery County may authorize, by law, a payment deferral of county property tax for residential real property that is occupied as a moderate income, multifamily rental housing facility.

For purposes of the tax payment deferral authorized by this subsection, the governing body of Montgomery County shall define the term “moderate income” through regulations based on § 8 of the United States Housing Act of 1937, as amended.

the amount of the payment deferral;

the duration of the payment deferral; and

the qualifications for the payment deferral.

has resided in the dwelling for a period of at least 5 consecutive years;

meets the income eligibility requirements determined under subsection (c) of this section.

the amount of the tax that may be deferred, not exceeding the increase in the county property tax from the date the taxpayer elects to defer the payment of the tax;

restrictions on the amount of the real property eligible for a payment deferral under subsection (a) of this section, except that the amount of eligible property may not be less than the dwelling and curtilage, as determined by the supervisor;

the duration of the payment deferral under subsection (a) of this section;

the rate of interest to be paid on the county property tax payment from the due date without a deferral until the date that the county property tax is paid, except that in Prince George’s County the rate of interest may not exceed 4%;

that any mortgagee or beneficiary under a deed of trust be entitled to receive notice of the deferral and of the amount of tax to be deferred; and

the level of income to determine eligibility for the payment deferral under subsection (a) of this section.

The governing body of Prince George’s County shall establish and promote a countywide public information, awareness, and education campaign on the property tax deferral available under this section.

The campaign under paragraph (1) of this subsection shall disseminate information about the property tax deferral through written notice in the annual property tax bill, publication on the appropriate county websites, posters, and any other medium likely to reach resident taxpayers who may be eligible for the deferral program under this section.

has resided in the dwelling for a period of at least 5 consecutive years; and

meets the income eligibility requirements determined under subsection (c) of this section.

the amount of the tax that may be deferred, not exceeding the increase in the county property tax from the date the taxpayer elects to defer the payment of the tax;

restrictions on the amount of the real property eligible for a payment deferral under subsection (a) of this section, except that the amount of eligible property may not be less than the dwelling and curtilage, as determined by the supervisor;

the duration of the payment deferral under subsection (a) of this section;

the rate of interest to be paid on the county property tax payment from the due date without a deferral until the date that the county property tax is paid;

that any mortgagee or beneficiary under a deed of trust be entitled to receive notice of the deferral and of the amount of tax to be deferred; and

the level of income to determine eligibility for the payment deferral under subsection (a) of this section.

has resided in the dwelling for a period of at least 5 consecutive years;

meets the income eligibility requirements determined under subsection (c) of this section.

the amount of the tax that may be deferred, not exceeding the increase in the municipal corporation property tax from the date the taxpayer elects to defer the payment of the tax;

restrictions on the amount of the real property eligible for a payment deferral under subsection (a) of this section, except that the amount of eligible property may not be less than the dwelling and curtilage, as determined by the supervisor;

the duration of the payment deferral under subsection (a) of this section;

the rate of interest to be paid on the municipal corporation property tax payment from the due date without a deferral until the date that the municipal corporation property tax is paid;

that any mortgagee or beneficiary under a deed of trust be entitled to receive notice of the deferral and of the amount of tax to be deferred; and

the level of income to determine eligibility for the payment deferral under subsection (a) of this section.

In this section the following words have the meanings indicated.

“Business property” means real property:

“Owner–occupied residential property” means the principal residence of a homeowner as defined in § 9–105 of this article.

the governing body of a county shall provide a semiannual payment schedule for State, county, and special taxing district property taxes due on owner–occupied residential property or business property; and

the governing body of a municipal corporation shall provide a semiannual payment schedule for municipal corporation and special taxing district property taxes due on owner–occupied residential property or business property.

at the time of the transfer of property purchased on or after July 1, 2000; and

to any current or future owner of owner–occupied residential property or business property, regardless of whether the property was purchased before July 1, 2000.

The semiannual payment schedule under this section shall apply to:

The first installment of a semiannual payment shall be paid on or before September 30.

shall be:

does not apply if both installments of property tax are paid on or before September 30 of the taxable year; and

may not be considered to be a property tax for the purposes of any provision of a local law or charter that limits the property tax rate or property tax revenues.

The property tax bill under a semiannual payment schedule:

The Department shall approve any local semiannual payment schedule collection that:

Local semiannual payment schedule collection systems that are not approved by the Department shall utilize 2 semiannual payment coupons that shall be submitted with the appropriate payment.

for the first installment:

for the second installment:

If an escrow account is established for the payment of the property tax, the escrow account servicer shall pay tax in semiannual installments unless the escrow account servicer has received written direction from the property owner or borrower to pay property tax in annual payments.

If a taxpayer provides written direction to an escrow account servicer at least 60 days prior to the beginning of the tax year, property taxes shall be paid on an annual payment basis on behalf of that taxpayer by the escrow account servicer in the tax year that begins immediately following the year in which the written direction was received.

If a taxpayer provides written direction to an escrow account servicer less than 60 days prior to the beginning of the tax year, property taxes may be paid on an annual payment basis on behalf of that taxpayer by the escrow account servicer in the tax year that begins immediately following the year in which the written direction was received.

has resided in the dwelling for a period of at least 5 consecutive years; and

meets the income and age eligibility requirements determined under subsection (c) of this section.

the minimum age of an owner to determine eligibility for the payment deferral;

the amount of the tax that may be deferred, not exceeding the increase in the county property tax from the date the taxpayer elects to defer the payment of the tax;

the duration of the payment deferral under subsection (a) of this section;

restrictions on the amount of the real property eligible for a payment deferral, except that the amount of eligible property may not be less than the dwelling and curtilage, as determined by the supervisor;

the rate of interest to be paid on the county property tax payment from the due date without a deferral until the date that the county property tax is paid;

that any mortgagee or beneficiary under a deed of trust be entitled to receive notice of the deferral and of the amount of tax to be deferred; and

the level of income to determine eligibility for the payment deferral.

when the eligible owner dies; or

immediately upon transfer of ownership of the property for which the property tax has been deferred.

A lien shall attach to the property in the amount of all deferred taxes and interest.

The lien shall remain attached until the deferred taxes and interest are paid.

The governing body of Charles County shall authorize the deferral by written agreement.

The agreement shall reflect the terms and conditions of the deferral, including notice of the lien.

The agreement shall be recorded in the land records of the county.

has resided in the dwelling for a period of at least 5 consecutive years;

is at least 65 years of age; and

meets the income eligibility requirements determined under subsection (c) of this section.

the amount of the tax that may be deferred, not exceeding the increase in the county property tax from the date the taxpayer elects to defer the payment of the tax;

the duration of the payment deferral under subsection (a) of this section;

restrictions on the amount of the real property eligible for a payment deferral, except that the amount of eligible property may not be less than the dwelling and curtilage, as determined by the supervisor;

the rate of interest, not exceeding an annual rate of 3%, to be paid on the county property tax payment from the due date without a deferral until the date that the county property tax is paid;

that any mortgagee or beneficiary under a deed of trust be entitled to receive notice of the deferral and of the amount of tax to be deferred; and

the level of income to determine eligibility for the payment deferral.

when the deferral ends as specified in subsection (c)(2) of this section;

when the eligible owner dies; or

immediately on transfer of ownership of the property for which the property tax has been deferred.

A lien shall attach to the property in the amount of all deferred taxes and interest.

The lien shall remain attached until the deferred taxes and interest are paid.

The governing body of Washington County shall authorize the deferral by written agreement.

The agreement shall reflect the terms and conditions of the deferral, including notice of the lien.

The agreement shall be recorded in the land records of the county.

has resided in the dwelling for a period of at least 5 consecutive years;

meets the income eligibility requirements determined under subsection (c) of this section.

the amount of the tax that may be deferred, not exceeding the increase in the county property tax from the date the taxpayer elects to defer the payment of the tax;

the duration of the payment deferral under subsection (a) of this section;

restrictions on the amount of the real property eligible for a payment deferral, except that the amount of eligible property may not be less than the dwelling and curtilage, as determined by the supervisor;

the rate of interest to be paid on the county property tax payment from the due date without a deferral until the date that the county property tax is paid;

that any mortgagee or beneficiary under a deed of trust be entitled to receive notice of the deferral and of the amount of tax to be deferred; and

the level of income to determine eligibility for the payment deferral.

when the duration of the payment deferral expires as specified by the governing body of Anne Arundel County;

when the owner dies; or

immediately on transfer of ownership of the property for which the property tax has been deferred.

A lien shall attach to the property in the amount of all deferred taxes and interest.

The lien shall remain attached until the deferred taxes and interest are paid.

The governing body of Anne Arundel County shall authorize the deferral by written agreement.

The agreement shall reflect the terms and conditions of the deferral, including notice of the lien.

The agreement shall be recorded in the land records of the county.

the owner or at least one of the owners:

the combined gross income of all individuals who actually reside in the dwelling, excluding an individual who pays a reasonable amount for rent or room and board or is a dependent of a renter under § 152 of the Internal Revenue Code, does not exceed $45,000.

the amount of the tax that may be deferred;

restrictions on the amount of the real property eligible for a payment deferral under subsection (b) of this section, except that the amount of eligible property may not be less than the dwelling and curtilage, as determined by the supervisor;

the duration of the payment deferral under subsection (b) of this section;

that a rate of interest of up to 4% shall be paid on the county property tax payment from the due date without a deferral until the date that the county property tax is paid; and

that any mortgagee or beneficiary under a deed of trust be entitled to receive notice of the deferral and of the amount of tax to be deferred.

when the deferral ends as specified in subsection (d)(3) of this section;

when the eligible owner dies; or

immediately on transfer of ownership of the property for which the property tax has been deferred.

A lien shall attach to the property in the amount of all deferred taxes and interest.

The lien shall remain attached until the deferred taxes and interest are paid.

The governing body of Prince George’s County shall authorize the deferral by written agreement.

The agreement shall reflect the terms and conditions of the deferral, including notice of the lien.

The agreement shall be recorded in the land records of the county.

The governing body of Prince George’s County shall establish and promote a countywide public information, awareness, and education campaign on the property tax deferral available under this section.

The campaign under paragraph (1) of this subsection shall disseminate information about the property tax deferral through written notice in the annual property tax bill, publication on the appropriate county websites, posters, and any other medium likely to reach resident taxpayers who may be eligible for the deferral program under this section.

Subject to paragraph (3) of this subsection, the governing body of a county or municipal corporation may authorize, by law, advance payment of county, municipal corporation, or special taxing district property tax.

Subject to paragraph (3) of this subsection and in accordance with § 10–208 of this subtitle, the governing body of a county or municipal corporation may authorize the advance payment to be paid on an installment payment schedule.

The law authorizing advance payment may allow interest on the advance payment.

The interest may not exceed any discounts allowed by law.

does not own any real property in the county or municipal corporation; and

begins doing business in the county or municipal corporation or is conducting business and expands to a new location in the county or municipal corporation.

Subject to § 10–205 of this subtitle, the governing body of a county or municipal corporation may authorize, by law, an installment payment schedule for the county, municipal corporation, or special taxing district property tax imposed on real property.

If a fee or other charge imposed by a county, municipal corporation, or special taxing district is also included on the tax bill sent to the taxpayer, the governing body of a county or municipal corporation may also authorize, by law, the payment of the fee or charge through the installment payment schedule authorized under paragraph (1) of this subsection.

the taxing authority may impose a service charge in accordance with § 10–204.3(f) and (g) of this subtitle; and

no interest may be charged if payment is made before the next installment is due or the last installment is due, whichever is earlier.

any additional eligibility criteria for an installment payment schedule under this section;

the process for electing an installment payment schedule;

the number of installment payments allowed each year;

the due date for each installment payment; and

any other provision necessary to carry out the provisions of this section.

A taxpayer may elect to pay the property tax imposed on real property through an installment payment schedule authorized under this section.

The failure by the taxpayer to make an installment payment under an installment payment schedule authorized under this section may not be considered to be a failure to pay the property tax when due except as provided under Subtitle 1 of this title.

If a person is in compliance with the terms of an installment payment program under this section, the collector may not take action under Title 14, Subtitle 8 of this article to collect any property taxes in arrears that are included in the installment payment program.

A person is not in compliance with the terms of an installment payment program if the person fails to make a payment for a period of 90 days after the date the payment is due, or a longer period determined by the Mayor and City Council of Baltimore City or the governing body of a county or municipal corporation.

If a person is not in compliance with the terms of an installment payment program, the collector may:

any additional eligibility criteria for an installment payment program under this section;

the process for enrolling in an installment payment program;

the frequency and due dates of installment payments; and

any other provision necessary to carry out this section.

The estimated property tax may not exceed the amount calculated by applying the applicable current property tax rate to the most recent assessment of the property.

Payment is due 30 days after the tax bill is received or reasonably should have been received or available and if unpaid is subject to interest and penalties as provided by §§ 14-604, 14-608, and 14-702 of this article.

real property that is partially damaged or totally destroyed; or

personal property that is totally destroyed.

if the damage occurred during the 6-month period from the date of finality to the June 30 following, property tax is not due for the taxable year beginning on the following July 1;

if the damage occurred during the first month of the taxable year, 8% of the property tax is due;

if the damage occurred during the second month of the taxable year, 17% of the property tax is due;

if the damage occurred during the third month of the taxable year, 25% of the property tax is due;

if the damage occurred during the fourth month of the taxable year, 33% of the property tax is due;

if the damage occurred during the fifth month of the taxable year, 42% of the property tax is due;

if the damage occurred during the sixth month of the taxable year, 50% of the property tax is due;

if the damage occurred during the seventh month of the taxable year, 58% of the property tax is due;

if the damage occurred during the eighth month of the taxable year, 67% of the property tax is due;

if the damage occurred during the ninth month of the taxable year, 75% of the property tax is due;

if the damage occurred during the tenth month of the taxable year, 83% of the property tax is due;

if the damage occurred during the eleventh month of the taxable year, 91% of the property tax is due; and

if the damage occurred during the twelfth month of the taxable year, the full amount of property tax is due.

Except for tax sales as provided by Title 14, Subtitle 8 of this article, if real property ownership is transferred on or after the date of finality and before the semiannual date of finality, the transferee is liable for the property tax on real property for the taxable year that begins after the transfer.

If real property ownership is transferred on or after July 1 and before January 1, and the property is subject to a semiannual payment schedule of property tax for the current taxable year under § 10-204.3 of this title, the transferor is liable for any semiannual property tax installment that may be due for the real property in the current taxable year at the time of transfer, and is not liable for the second semiannual installment that is due after the date of transfer. The transferee is solely liable for any semiannual property tax installment for the current taxable year that is due after the date of transfer.

This subsection does not preclude the transferor and the transferee of real property that is subject to this subsection from adjusting the property tax or service charges for any year between them.

If a transfer of all personal property or all the stock in business of a business occurs on or after the date of finality and before the semiannual date of finality the property is assessed to the transferee as if the property were escaped property under § 8-417 of this article, if the transferor or the transferee files with the Department or the supervisor on or before the October 1 immediately after the date of the transfer a report, under oath, that contains:

If the report is not filed, the transferor and the transferee are jointly and severally liable for the next taxable year following the transfer.

This subsection does not apply to any personal property or stock in business removed from the State before the semiannual date of finality.

If the transferor of personal property that is transferred under this section has paid the property tax, the transferor may require the transferee to adjust the property tax with the transferor.

If a transfer of all personal property or all the stock in business of a business occurs on or after the semiannual date of finality and before the subsequent year date of finality:

If the transferor of personal property that is transferred under this section has paid the property tax, the transferor may require the transferee to adjust the property tax with the transferor.

Except as provided in paragraph (2) of this subsection, subsection (b) of this section does not apply to any leasehold interest held in any property within:

This subsection does not apply to any reversionary interest of the federal government, the State, a county, or a municipal corporation, or an agency or instrumentality of the federal government, the State, a county, or a municipal corporation in property described in paragraph (1) of this subsection.