Ch. 776                                          LAWS OF MARYLAND

(e) (1) For the taxable years [1986-1987 and] 1987-1988
AND, 1988-1989, AND 1989-1990, the property tax credit under this
section is calculated by:

[(1)] (I) multiplying the prior year's taxable
assessment by 115%;

[(2)] (II) subtracting that amount from the current
year's assessment; and

[(3)] (III) if the difference is a positive number,
multiplying the difference by the applicable county or municipal
corporation property tax rate for the current year.

(2) FOR THE TAXABLE YEAR 1989-1990 1990-1991 AND EACH
YEAR THEREAFTER, SUBSECTIONS (F) THROUGH (K) OF THIS SECTION
APPLY, AND THE PROPERTY TAX CREDIT UNDER THIS SECTION IS
CALCULATED BY:

(I)  MULTIPLYING THE PRIOR YEAR'S TAXABLE
ASSESSMENT BY 115%;

(II)  SUBTRACTING THAT AMOUNT FROM THE CURRENT
YEAR'S ASSESSMENT;

(III)  IF THE DIFFERENCE IS A POSITIVE NUMBER,
MULTIPLYING THE DIFFERENCE BY THE APPLICABLE COUNTY OR MUNICIPAL
CORPORATION PROPERTY TAX RATE FOR THE CURRENT YEAR; AND

(IV)  MULTIPLYING THAT AMOUNT BY THE INCOME
FACTOR SPECIFIED IN SUBSECTION (F) OF THIS SECTION.

(F)  THERE IS AN INCOME FACTOR FOR EACH RANGE OF GROSS
INCOME OF THE HOMEOWNER OR FOR THE COMBINED INCOME OF AN
APPLICANT A HOMEOWNER AND SPOUSE UNDER THIS SECTION AS FOLLOWS:

INCOME RANGE                                    INCOME FACTOR

0 $35,000---------------------100%

$35,001-$45,000----------------------75%

$45,001-$55,000----------------------50%

OVER----$55,000---------------- ------0%

0   -   $60,000_________________________100%

$60,001   -   $65,000                                               75%

$65,001   -   $70,000                                               50%

OVER     -   $70,000                                                          0%

(G)  THE DEPARTMENT SHALL GIVE NOTICE OF THE POSSIBLE
PROPERTY TAX CREDIT UNDER THIS SECTION.

(H) (1) FOR INCOME VERIFICATION, THE COMPTROLLER SHALL:

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