In this chapter, the following terms have the meanings indicated. Terms Defined. “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 following criteria have been adopted by the Department in the processing of applications for the Homeowners' Tax Credit Program: Curtilage. The amount of real property taxes eligible for credit consideration is calculated upon the curtilage, which shall include: The land occupied by the dwelling house and garage and assessed at a primary rate; The amount of any additional land insufficient in size according to local zoning requirements for another homesite and assessed at a lesser rate, excluding any agriculturally assessed land. The curtilage determined under §A(1) of this regulation shall be posted to the assessment field card by the local supervisor of assessments. Dwelling House. 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: The trailer is the principal residence of its owner; The trailer is not located in a trailer park, as defined by local zoning ordinances, where an excise tax is collected by the local government under Article 24, §9-401, Annotated Code of Maryland; The owner of the trailer is not paying a fee for the privilege of using the parking space as defined in Tax-Property Article, §8-234, Annotated Code of Maryland; The owner of the site upon which the trailer is located has established a separate property tax account for the site; The owner of the trailer receives a separate property tax bill for the trailer. Combined Gross Income of All Persons Residing in the Home. 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. Dependent. An applicant who claims a person is a dependent, but who does not file a federal income tax return, shall submit verification of the dependency status to the Department in the form of a sworn affidavit. Reasonable Fixed Charges. A fixed charge reported by an applicant is considered reasonable if it equals one of the following amounts: A minimum weekly standard established by the Department; Ten percent of the nondependent occupant's gross income; Ten percent of the applicant's combined gross income; The aggregate of all individual expenses paid by the occupant to assist in the maintenance of the dwelling house; An amount the local supervisor of assessments or tax credit administrator finds sufficient in cases of extreme hardship. 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. Total income, whether taxable for federal or State income tax purposes or not, shall be reported on the tax credit application, and requires: The counting of 100 percent of capital gains and dividends; The disallowance of capital losses in excess of capital gains; The disallowance of depreciation as a business deduction; The disallowance of all federal adjustments to personal income except employee business expenses and the penalty for early withdrawal of savings. Total income does not include lump-sum life insurance payments, research grants, and Veterans Administration educational benefits. Recovery of Tax Credits. 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. The dwelling house is sold before the end of the taxable year for which a credit was granted; The dwelling house is transferred to the heirs of an applicant before the end of the relevant taxable year; The dwelling house initially was granted an improper amount of tax credit as determined upon a post audit investigation; The homeowner dies before the end of the taxable year for which a credit was granted. Timeliness of Application. The Department shall consider an application as timely under Tax-Property Article, §9-104(k), Annotated Code of Maryland, if the application is postmarked or received on or before the applicable date. Illness or Need of Special Care. For purposes of Tax-Property Article, §9-104(j), Annotated Code of Maryland, “illness or need of special care” means that the applicant, spouse, or dependents are actually in need of ongoing medical treatment at a level which cannot be provided in the dwelling house. The Department of Assessments and Taxation has established specific procedures for applicants to complete the Homeowners' Tax Credit application. Application Procedures Listed. 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 Department may establish additional application procedures which do not appear here, if considered necessary and if not inconsistent with the regulations. The Department of Assessments and Taxation establishes the following procedures for Homeowners' Tax Credit applicants who are home purchasers under Tax-Property Article, §9-104, Annotated Code of Maryland. Application Procedures Listed. 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. Tax-Property Article, §§2-201, 2-202, and 9-104, Annotated Code of Maryland Effective date: January 7, 1982 (8:26 Md. R. 2106) Regulations .01—.03 amended effective March 11, 1996 (23:5 Md. R. 384) Regulation .04 adopted as an emergency provision effective June 1, 2000 (27:14 Md. R. 1339); adopted permanently effective December 11, 2000 (27:24 Md. R. 2199) Annotation: COMAR 18.07.01.03 cited in Wargo v. State, 62 Md. App. 620 (1985), in which the requirement that an applicant for the homeowners' tax credit provide a copy of his or her federal income tax return was upheld.