HARRY HUGHES, Governor

2003

dwelling for the required time period because of illness or
need of special care that has been diagnosed as temporary in
nature or prescribed for a temporary or limited period of
time, even if the homeowner requires, under such
circumstances, institutionalization in a private or public
nursing home or medical care facility, and if during the
temporary period the homeowner rents the dwelling for a
period not to exceed 1 year. However, the rent shall be
included as gross income for purposes of eligibility as
defined in this section. A homeowner or homeowners may
claim credit in only one dwelling.

(6)  "Gross income" means total income from all
sources, for the calendar year immediately preceding the
taxable year, whether or not included in the definitions of
gross income for federal or State tax purposes, including
but not limited to benefits under the Social Security Act or
Railroad Retirement Act as these acts may be amended from
time to time, the aggregate of gifts in excess of $300,
alimony, support money, nontaxable strike benefits, public
assistance received in cash grants, pensions, annuities,
unemployment insurance benefits, and workmen's compensation
benefits. The term includes the net income received from
business, rental, or other endeavors. A loss from business,
rental or other endeavor may not be used in the
determination of gross income. The term does not include
any income tax refund received from the State or the federal
government.

(7)  "Homeowner" means every person who by July 1
of the taxable year in which the credit is to be allowed,
actually resides in a dwelling in which the person has a
legal interest. Legal interest includes any life estate,
whether as sole owner, joint tenant, tenant in common,
tenant by the entireties or through membership in a
cooperative.

[(8) "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 calculated on the assessed valuation of
the dwelling or $40,000, 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. The amount of tax
credit received under the provisions of § 12F-7 of this
article shall be deducted from the total of real property
taxes before determining the amount of "total real property
taxes" for credit pursuant to this section.]

(8)  "TOTAL REAL PROPERTY TAXES" MEANS THE
PRODUCT OF THE SUM OF ALL TAX RATES INCLUDING STATE, COUNTY
OR BALTIMORE CITY, MUNICIPAL AND SPECIAL DISTRICTS