ROBERT L. EHRLICH, JR., Governor

Ch. 43

(2)     A homeowner must actually reside in the dwelling by July 1 of the
taxable year for which the property tax credit under this section is to be allowed.

(3)     A homeowner may claim a property tax credit under this section for
only 1 dwelling.

(4)     If a property tax credit under this section is less than $1 in any
taxable year, the tax credit may not be granted.

(e) (1) For each taxable year, the property tax credit under this section is
calculated by:

(i) multiplying the prior year's taxable assessment by the
homestead credit percentage as provided under paragraph (2) of this subsection;

(ii) subtracting that amount from the current year's assessment;
and

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

(2)     For each taxable year, the homestead credit percentage under
paragraph (1)(i) of this subsection is:

(i) for the State property tax, 110%;

(ii) for the county property tax:

1.       the homestead credit percentage established by the county
under paragraph (3) of this subsection; or

2.       if the county has not set a percentage for the taxable year
under paragraph (3) of this subsection or has not notified the Department as required
under paragraph (6) of this subsection, the homestead credit percentage in effect for
the county for the preceding taxable year; and

(iii) for the municipal corporation property tax:

1.       the homestead credit percentage established by the
municipal corporation under paragraph (4) of this subsection; or

2.       if the municipal corporation has not set a percentage
under paragraph (4) of this subsection or has not notified the Department as required
under paragraph (7) of this subsection, the homestead credit percentage for the
taxable year for the county in which the property is located.

(3)     Subject to paragraph (5) of this subsection, the Mayor and City
Council of Baltimore City and the governing body of a county on or before November
15 of any year shall set, by law, the homestead credit percentage for the taxable year
beginning the following July 1.

- 257 -