2020

LAWS OF MARYLAND                            Ch. 734

homeowner or homeowners. No dwelling may be deemed a
principal residence which is not actually occupied or
expected to be actually occupied by the homeowner or
homeowners for more than six months of some 12—month
period, including [the date of application for tax
credit] JULY 1 OF THE TAXABLE YEAR FOR WHICH THE TAX
CREDIT IS SOUGHT. A homeowner, otherwise eligible, may
qualify for the credit if he does not actually reside in
the dwelling the required time period because of illness
or need of special care. A homeowner or homeowners may
claim credit in only one dwelling.

(5) "Total real property taxes" means the
total of all real property taxes including State, county
or Baltimore City, municipal and special districts for
which the homeowner has a real property tax liability on
the dwelling for the taxable year. The real property tax
liability shall be [prior to any discounts for payment
and shall be] calculated on the assessed valuation of the
dwelling or $30,000 of assessed valuation, whichever is
less. ALL DISCOUNTS FOR EARLY PAYMENT AND ALL INTEREST
OR PENALTIES FOR FAILURE TO PAY TAXES ON OR BEFORE
OCTOBER 1 SHALL BE CALCULATED ON THE REAL PROPERTY TAX
LIABILITY OF THE HOMEOWNER PRIOR TO ANY REDUCTION IN TAX
LIABILITY DUE TO ELIGIBILITY FOR A CREDIT UNDER THE TERMS
OF THIS SECTION.

(c) (1) A property tax credit, not to exceed
$750, shall be allowed upon the application of any
homeowner from total real property taxes upon the
dwelling for which application for the tax credit is
made. The tax credit shall be equal to the amount of
real property taxes in excess of a percentage of the
gross income, or combined income, as the case may be, of
the homeowner. This percentage shall not exceed three
percent of the first $3,000 of combined income, four
percent of the next $5,000 of combined income, five
percent of the next $4,000 of combined income, seven
percent of the next $3,000 of combined income and nine
percent of all combined income in excess of $15,000. The
credit shall not be allowed to any homeowner whose
COMBINED net worth is in excess of $150,000 as of
[January 1 of the year in which the credit is to be
allowed.] DECEMBER 31 OF THE CALENDAR YEAR PRECEDING THE
YEAR IN WHICH THE APPLICATION IS MADE FOR THE TAX CREDIT.

(2) WHEN A HOMEOWNER SELLS A DWELLING WHICH
IS SUBJECT TO A PROPERTY TAX CREDIT, THE CREDIT SHALL BE
TERMINATED AS OF THE DATE OF TRANSFER OF THE PROPERTY.
THE TOTAL AMOUNT OF THE CREDIT SHALL BE INCLUDED IN THE
AMOUNT OF ORDINARY TAXES WHICH WERE PAID BY THE HOMEOWNER
AND WHICH ARE ADJUSTED AT THE TIME OF SETTLEMENT BETWEEN
THE HOMEOWNER AND THE PURCHASER. THE HOMEOWNER SHALL BE
CHARGED ONLY FOR THAT PROPORTION OF THE CREDIT WHICH THE
HOMEOWNER'S PERIOD OF OWNERSHIP OF THE PROPERTY DURING
THE TAXABLE YEAR IN WHICH THE TRANSFER OCCURS BEARS TO
THE ENTIRE TAXABLE YEAR. THE REMAINING PORTION OF THE
CREDIT SHALL BE PAID BY THE PURCHASER TO THE COUNTY OR