EXPLANATION: CAPITALS indicate matter added to existing law.
[Brackets] indicate matter deleted from existing law.
* WARNING: THIS IS AN UNOFFICIAL, INTRODUCTORY COPY OF THE BILL.
THE OFFICIAL COPY CONSIDERED BY THE CITY COUNCIL IS THE FIRST READER COPY.
INTRODUCTORY*
CITY OF BALTIMORE
COUNCIL BILL
Introduced by: Councilmember Kraft
A BILL ENTITLED
AN ORDINANCE concerning
Title
Property Tax - Senior Citizens Tax Credits
FOR the purpose of establishing a tax credit for certain senior citizens under certain conditions; setting the terms, conditions, and duration of the credit; providing for the administration of the credit; and generally relating to property tax credits.
Body
BY adding
Article 28 - Taxes
Section(s) 10-16
Baltimore City Code
(Edition 2000)
SECTION 1. BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE, That the Laws of Baltimore City read as follows:
Baltimore City Code
Article 28. Taxes
Subtitle 10. Credits
§ 10-16. SENIOR CITIZENS.
(A) DEFINITIONS.
(1) IN GENERAL.
IN THIS SECTION, THE FOLLOWING TERMS HAVE THE MEANINGS INDICATED.
(2) BASELINE YEAR.
"BASELINE YEAR" MEANS THE TAXABLE YEAR PRECEDING THE FIRST OF THE CONTINUOUS SERIES OF TAXABLE YEARS FOR WHICH A TAXPAYER RECEIVES A CREDIT UNDER THIS SECTION.
(3) COMBINED INCOME.
(I) "COMBINED INCOME" MEANS THE AGGREGATE GROSS INCOME OF ALL INDIVIDUALS, OTHER THAN AS SPECIFIED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH, WHO RESIDE IN A DWELLING
(II) "COMBINED INCOME" DOES NOT INCLUDE THE INCOME OF:
A. A DEPENDENT OF THE HOMEOWNER, AS PROVIDED IN § 152 OF THE INTERNAL REVENUE CODE; OR
B. SOMEONE WHO PAYS A REASONABLE AMOUNT FOR RENT OR FOR ROOM AND BOARD.
(4) DIRECTOR.
"DIRECTOR" MEANS THE DIRECTOR OF FINANCE OR DESIGNEE.
(B) CREDIT GRANTED.
IN ACCORDANCE WITH STATE TAX-PROPERTY ARTICLE § 9-245, A REAL PROPERTY TAX CREDIT IS GRANTED AGAINST THE CITY PROPERTY TAX IMPOSED ON A RESIDENCE THAT IS OWNED, IN WHOLE OR IN PART, BY AN INDIVIDUAL WHO:
(1) IS 70 YEARS OLD OR OLDER;
(2) USES THE PROPERTY AS HIS OR HER PRINCIPAL RESIDENCE FOR AT THE LEAST THE PERIOD THAT WOULD BE REQUIRED TO QUALIFY FOR THE HOMEOWNER TAX CREDIT AUTHORIZED BY STATE TAX-PROPERTY ARTICLE § 9-104; AND
(3) LIVES IN A HOUSEHOLD WITH A COMBINED INCOME THAT DOES NOT EXCEED $35,000.
(C) AMOUNT OF CREDIT.
(1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION, THE AMOUNT OF THE TAX CREDIT GRANTED UNDER THIS SECTION SHALL EQUAL:
(I) THE INCREASE OF THE CITY PROPERTY TAX IN THE YEAR FOR WHICH THE CREDIT IS SOUGHT OVER THE CITY PROPERTY TAX IN THE BASELINE YEAR; PLUS
(II) 25% OF THE PROPERTY TAX IN THE BASELINE YEAR.
(2) THE AMOUNT OF THE CREDIT SHALL BE CALCULATED AFTER ALL OTHER CREDITS GRANTED FOR THAT PROPERTY HAVE BEEN APPLIED.
(3) PROPERTY TAXES ATTRIBUTABLE TO AN INCREASE IN THE PROPERTY'S VALUE BECAUSE OF SUBSTANTIAL IMPROVEMENTS MADE TO THE PROPERTY SHALL BE EXCLUDED FROM THE CALCULATION MADE UNDER PARAGRAPH (1) OF THIS SUBSECTION.
(D) DURATION OF CREDIT.
THE TAX CREDIT GRANTED UNDER THIS SECTION CONTINUES AS LONG AS AN OWNER AND THE PROPERTY REMAIN QUALIFIED UNDER SUBSECTION (B) OF THIS SECTION.
(E) APPLICATION FOR CREDIT.
(1) TO RECEIVE THE CREDIT, A PROPERTY OWNER SHALL SUBMIT AN APPLICATION TO THE FINANCE DIRECTOR.
(2) THE APPLICATION SHALL:
(I) DEMONSTRATE THAT THE OWNER IS ENTITLED TO THE CREDIT;
(II) BE SUBMITTED ON THE FORM THAT THE DIRECTOR REQUIRES; AND
(III) FOR A FISCAL YEAR, BE SUBMITTED ON OR BEFORE THE DATE THAT THE DIRECTOR SETS.
(F) RULES AND REGULATIONS.
THE DIRECTOR OF FINANCE MAY ADOPT RULES AND REGULATIONS TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
SECTION 2. AND BE IT FURTHER ORDAINED, That the catchlines contained in this Ordinance are not law and may not be considered to have been enacted as a part of this or any prior Ordinance.
SECTION 3. AND BE IT FURTHER ORDAINED, That this Ordinance takes effect on the 30th day after the date it is enacted, effective for all tax years beginning on or after July 1, 2007.
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