1332                             Laws of Maryland                      [Ch. 633

12F.

(b) As used in this section, the following words have the mean-
ings herein specified. "Homeowner" means every person who ac-
tually resides in a dwelling in which such person has a legal interest,
including any life estate, whether as sole owner, joint tenant, in
common, or tenant by the entireties. "Gross income" means total
gross income from all sources, including but not limited to gifts,
and whether or not included in the definitions of gross income for
federal or State income tax purposes, but "gross income" does not
include the amount of old age, survivors, or disability benefits re-
ceived under the Social Security Act, as amended, or under the Rail-
road Retirement Act, as amended. "Combined gross income" means
the combined gross income of all homeowners, if more than one,
and all persons actually residing in the same dwelling, except per-
sons whose contributions, reasonably apportionable towards the
cost of upkeep, maintenance and repair of the dwelling, are in the
form of fixed rental charges. "Dwelling" means the dwelling house
of one or more homeowners and the lot or curtilage where the same
is erected, which is used as the principal residence of such home-
owner or homeowners. No dwelling shall be deemed a principal resi-
dence which is not actually occupied or expected to be actually oc-
cupied by such homeowner or homeowners for more than six months
of some twelve-month period including the date of application for
credit. A homeowner or homeowners may claim credit on only one
such dwelling. The administrative unit or official administering the
program may qualify a homeowner otherwise eligible for the tax
credit if he does not actually reside in the dwelling the required time
period for reason of illness or need of special care. When any prop-
erty which is owned by a person who is entitled to a tax credit
under this section is sold to a purchaser, the tax credit shall be
terminated as of the date of transfer of the property between the
parties. THE TOTAL AMOUNT OF ANY TAX CREDIT SHALL
BE INCLUDED IN THE AMOUNT OF ORDINARY TAXES
WHICH WERE PAID BY THE SELLER OF THE PROPERTY
AND WHICH ARE ADJUSTED AT THE TIME OF SETTLE-
MENT FOR THE PROPERTY BETWEEN THE SELLER AND
THE PURCHASER. The seller of the property shall receive credit
only for that proportion of the tax credit which his period of owner-
ship of the property during the taxable year in which the transfer
occurs bears to the entire taxable year. The remaining portion of
the tax credit shall be paid by the seller to the county in which the
property is located and shall be deposited into general funds of the
county. "Subdivision" means any county of the State of Maryland,
or the City of Baltimore.

Sec. 2. And be it further enacted, That the provisions of this
Act shall only be applicable to sales of properties occurring after
the effective date of this Act.

Sec. 3. And be it further enacted, That this Act shall take effect
July 1, 1971.

Approved May 24, 1971.