3068

VETOES

The Honorable Blair Lee, III
Acting Governor of Maryland
State House
Annapolis, Maryland 21401

Re: Senate Bill 738

Dear Governor Lee:

House Bill 1168 and Senate Bill 731, both enacted by
the 1978 session of the General Assembly, are identical
bills which amend Section 12F-1 of Article 8 1 of the
Maryland Annotated Code. These bills, generally known as
the "circuit breaker extension bills," repeal and reenact
Section 12F—1 for the purpose of extending circuit breaker
tax relief to homeowners who are not 60 years of age or
older and who are not permanently disabled, but who, on the
basis of income, are provided with a partial tax credit on
their real property taxes.

While the new Section 12F—1 has many similarities to
the present section, many adjustments were made in the
definitional sections in response to various problems which
became apparent during the administration of the circuit
breaker program which took effect on July 1, 1974. This
bill does establish a new procedure for the provisions of a
tax credit to the "partial credit homeowner," that is, those
homeowners not yet 60 or disabled. These homeowners make
application for their tax credit directly to the Department
of Assessments and Taxation, and if the credit is allowed,
receive from the Department a voucher which may be presented
to the county or Baltimore City in partial payment of the
property tax, or if the property tax is paid, for a tax
refund- The portions of the bill providing a tax credit to
the partial credit homeowner are repealed automatically on
July 1, 1981, without further action by the General
Assembly.

For the reasons set forth in our opinion of May 23,
1974, to the Honorable Marvin Mandel, we believe that these
circuit breaker extension bills are constitutional.

House Bills 1178, 89, and 861 and Senate Bill 738 each
amend provisions of the present Section 12F—1. While we have
reviewed these bills and find each of them to be
constitutional, if the circuit breaker extension bills are
signed, these bills should not be signed. If they are
signed prior to the circuit breaker extension bills, they
will be repealed by the signing of those bills. If they are
signed after the circuit breaker extension bills, they will
amend nonexistent subsections of Section 12F—1. In
addition, the concepts set forth in these bills are
incorporated in the tax credit extension bills.