Chapter 01. Homeowners' Tax Credit Program

“Affidavit” means a sworn statement in writing on a standard form furnished by the Department.

“All persons residing in the home” means household occupants as of the date an application is submitted.

“Applicant” means a person filing for a property tax credit.

“Combined gross income of all persons” means the monies received in the prior calendar year by the applicant homeowner, the spouse, unless separated, divorced, or widowed, or the resident co-owner, or all of these, and the monies received by other nondependent occupants of the household unless they are paying reasonable fixed charges.

“Combined net worth” means the net worth of the applicant, spouse or co-owner, or all of these, residing in the dwelling house.

“Curtilage” means that amount of land necessary and used for the homesite and dwelling.

“Dependent” means a person who satisfies the federal Internal Revenue Service standard for a dependent.

“Dwelling house” means the principal residence of a homeowner but does not include any portion of the structure used for a business or income-producing purpose.

“Principal residence of the homeowner” is the one dwelling house where the homeowner regularly resides and is the location designated by the owner for the legal purpose of voting, obtaining a driver's license, and filing income tax returns.

“Reasonable fixed charges” means the amount of room and board, rent, or expenses paid which are sufficient to defray the cost of an individual residing on the premises.

“Total income” means all monies received by a person in a given year, whether taxable for federal or State income tax purposes, or not.

The amount of real property taxes eligible for credit consideration is calculated upon the curtilage, which shall include:

The curtilage determined under §A(1) of this regulation shall be posted to the assessment field card by the local supervisor of assessments.

The amount of real property taxes eligible for credit consideration shall be calculated on the curtilage as defined in §A(1) of this regulation and the dwelling house, which is used as the principal residence of a homeowner.

A trailer may qualify as a dwelling house if it meets all of the following criteria:

An applicant shall report on the application the combined gross income of all persons residing in the home, if the persons are not dependents, or not paying reasonable fixed charges.

An applicant who refuses to submit the information required under §C(1) of this regulation shall be denied a property tax credit.

A fixed charge reported by an applicant is considered reasonable if it equals one of the following amounts:

An applicant who does not state initially on the application form the amount of a reasonable fixed charge received from a person shall execute a sworn affidavit.

Total income, whether taxable for federal or State income tax purposes or not, shall be reported on the tax credit application, and requires:

Total income does not include lump-sum life insurance payments, research grants, and Veterans Administration educational benefits.

The Department shall recover under Tax-Property Article, §9-104(o), Annotated Code of Maryland, the excess amount of credit granted in the following instances:

The Department shall request repayment of the excess credit amount from the owner of the dwelling house and shall direct the local city or county treasurer to place a lien on the property if payment is not received.

An applicant shall submit with the application form copies of the federal income tax return and accompanying schedules and forms.

An applicant who has a substantial ownership interest in a business or partnership shall submit a complete copy of the federal tax return filed for that business or partnership.

An applicant may be requested to complete an affidavit to substantiate any information reported on the application.

An applicant seeking to exclude the income of a spouse on the basis of a marital separation shall complete an affidavit setting forth the date separation occurred and stating the unlikelihood of the spouse returning to the dwelling house.

An applicant not filing by the September 1 deadline shall complete an affidavit stating the reason for the untimely filing if the application is to be considered for an extension.

An applicant who can submit proof that the applicant is a home purchaser under Tax-Property Article, §9-104(k-1), Annotated Code of Maryland, may file an application by June 30 of the taxable year for which the credit is sought.

An applicant who, pursuant to a court order or separation agreement, permits a spouse, former spouse, or children of that person to reside in the dwelling house without payment of rent, shall submit with the application a copy of the court order.

An applicant who refuses to submit any information required under Tax-Property Article, §9-104, Annotated Code of Maryland, and the regulations, shall be denied a tax credit for failure to substantiate the income reported.

An applicant who provides false or misleading information to the Department may be denied a tax credit.

The tax credit used to adjust a home purchaser's final tax liability at settlement will be in the form of a check made payable jointly to the home purchaser and the title company, attorney, or agent conducting the settlement.

A home purchaser shall submit with the application a copy of the executed sale agreement and all other forms required on the application form to verify the income reported.

A home purchaser shall provide information with the application regarding the name and address of the title company, attorney, or agent conducting the settlement and the specific date chosen for the settlement.

If a home purchaser fails to provide the Department with the specific date chosen for the settlement, the Department shall use the latest possible settlement date under the contract of sale to calculate the credit. If any additional amount of credit is due, it will be paid to the home purchaser after the settlement occurs.

If a home purchaser chooses to use the credit due at the time of settlement, the settlement shall be scheduled not sooner than 45 days after the Department receives the application to allow sufficient time for payment by the Comptroller.

A home purchaser may receive at the time of settlement any credit due only on the current tax year's property tax liability. A home purchaser shall apply separately for a tax credit in any subsequent tax year when application forms and income tax returns applicable for that year are available.

A home purchaser who fails to meet the conditions or requirements outlined will not receive any credit due at the time of settlement.