2004

LAWS OF MARYLAND

Ch. 551

APPLICABLE TO THE DWELLING FOR THE TAXABLE YEAR MULTIPLIED
BY THE ASSESSED VALUATION OF THE DWELLING OR $40,000,
WHICHEVER IS LESS, AND THEN REDUCED BY THE AMOUNT OF TAX
CREDIT, IF ANY, RECEIVED UNDER THE PROVISIONS OF § 12F-7 OF
THIS ARTICLE.

(9) "FINAL TAX LIABILITY" MEANS THE TAX
LIABILITY FOR ALL REAL PROPERTY TAXES ON THE DWELLING LESS
THE TAX CREDIT PROVIDED BY THIS SECTION. ALL DISCOUNTS FOR
EARLY PAYMENT SHALL BE CALCULATED ON THE AMOUNT OF THE FINAL
TAX LIABILITY AND DEDUCTED AT THE TIME OF PAYMENT. ALL
PENALTIES AND INTEREST FOR LATE PAYMENT SHALL BE CALCULATED
ON THE AMOUNT OF THE FINAL TAX LIABILITY AND ADDED AT THE
TIME OF PAYMENT. IN THE EVENT THAT A VOUCHER OR REVISED TAX
BILL IS ISSUED AFTER SEPTEMBER 1 OF ANY YEAR, PENALTY AND
INTEREST MAY NOT BE ASSESSED UNTIL 30 DAYS AFTER THE VOUCHER
OR REVISED TAX BILL IS ISSUED.

[(9)] (10) (i) "Net worth" means the sum of the
values of assets including but not limited to cash, savings
accounts, stocks, bonds, and other investments less
outstanding liabilities in addition to the excess of current
market value of real property, other than the dwelling for
which application for the tax credit is made over the
outstanding indebtedness on each such property. The cash
surrender value of life insurance policies and the value of
personal property are excluded.

(ii) In subparagraph (i), "current market
value" means:

(A)  In the case of residential
property only, the full cash value (100 percent) as
determined by the Department of Assessments and taxation;
and

(B)  In the case of farmlands or
woodlands only, the full cash value (100 percent), pursuant
to Section 19(b)(1) of this article, as determined by the
Department of Assessments and Taxation.

(b)  For taxable year 1979-1980 and each year
thereafter, there is a program of property tax credits from
real property taxation imposed by the State, counties,
Baltimore City, municipal corporations and special taxing
districts for certain homeowners by reason of income.

(c)  A property tax credit, not to exceed $900, 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 TOTAL real property taxes in excess of a
percentage of the gross income, or combined income, as the
case may be, of the homeowner. The percentage may not
exceed 1.5 percent of the first $4,000 of combined income,
3.5 percent of the next $4,000, 5.5 percent of the next
$4,000, 7.5 percent of the next $4,000, and 9.0 percent of