Ch. 12 LAWS OF MARYLAND

(4) SUBJECT TO PARAGRAPH (5) OF THIS SUBSECTION, ON OR
BEFORE JANUARY 1 OF ANY YEAR, THE GOVERNING BODY OF A
MUNICIPAL CORPORATION MAY SET OR ALTER, BY LAW. A HOMESTEAD
CREDIT PERCENTAGE FOR THE TAXABLE YEAR BEGINNING THE
FOLLOWING JULY 1 AND ANY SUBSEQUENT TAXABLE YEAR.

(5) THE HOMESTEAD CREDIT PERCENTAGE FOR ANY COUNTY
OR MUNICIPAL CORPORATION PROPERTY TAX MAY NOT EXCEED 110%
FOR ANY TAXABLE YEAR.

(6) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY AND
THE GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION
SHALL NOTIFY THE DEPARTMENT OF ANY ACTION TAKEN UNDER
PARAGRAPH (3) OR (4) OF THIS SUBSECTION ON OR BEFORE JANUARY 10
PRECEDING THE TAXABLE YEAR FOR WHICH THE ACTION IS TAKEN.

[(f) There is an income factor for each range of gross income of the homeowner
or for the combined income of a homeowner and spouse under this section as follows:

Income range Income factor

O - $60, 000 100%

$60, 001 - $65, 000 75%

$65, 001 - $70, 000 50%

over - $70, 000 0%]

(F){1} IF THE GROSS-INCOME OF THE HOMEOWNER OR THE
COMBINED INCOME OF THE HOMEOWNER AND SPOUSE IS LESS THAN OR
EQUAL TO THE INCOME LIMIT AS DETERMINED UNDER SUBSECTION
(F V) OF THIS SECTION, THE INCOME FACTOR IS 100% FOR EACH YEAR OF

THE 3 YEAR CYCLE.

(2) IF THE GROSS INCOME OF THE HOMEOWNER OR THE
COMBINED INCOME OF THE HOMEOWNER AND SPOUSE IS GREATER
THAN THE INCOME LIMIT AS DETERMINED UNDER SUBSECTION (F 1) OF
THIS SECTION, THE INCOME FACTOR IS:

(i) 50% FOR THE FIRST YEAR OF THE 3 YEAR CYCLE;
(II) 25% FOR THE SECOND YEAR OF THE 3 YEAR CYCLE;

AND

(III) 0% FOR THE THIRD YEAR OF THE 3 YEAR CYCLE.

(F 1) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF -THIS
SUBSECTION:

(i) THE TAX CREDIT INDEX UNDER SUBSECTION (E)(S)(I)
OF THIS SECTION IS 115%; AND

- 308 -