Variations in Receipt of Benefit
Benefit Varies with Income
Minimum Tax Amount Must be Paid
The program provides a relief equal to the amount of assumed property taxes that exceed a percentage of income. The plan assumes that 15% of your occupancy rent goes toward the payment of property taxes. The property tax relief a renter may receive is based upon a comparison of the assumed real property tax in the yearly rent minus a percentage of the household income 0% of the first $4,000 of income 2.5% of the next $4,000 of income 5.5% of all income in excess of $8,000 Total relief cannot exceed $1000. Renters have until September 1, 2017 to apply for credit.
How is Benefit Disbursed
Direct payment to taxpayer
Eligible Property Type
Characteristics of Eligible Property
Only residential property is eligible for this program.
Description of Eligibility Criteria
Individual must be at least 60 years old or be totally disabled and qualify for disability benefits under the Social Security Act, the Railroad Retirement Act, any federal act for members of the United States armed force, or any federal retirement system. Also eligible is an individual under the age of 60 with gross income below the federal poverty threshold and have one or more dependent children living with the renter. The property must be a principal residence and applicant not receiving federal or state rent subsidy. Income ceiling for applicant and one dependent is $16,337 up to $49,177 for a household of 9 people including the applicant. An applicant's combined net worth cannot exceed $200,000. Income is defined as the following: Credits are calculated according to total income, meaning all combined gross household income before deductions. This includes income from all sources, whether or not taxable for federal and state income tax purposes. It also includes Social Security as well as all other retirement benefits.
Local Option in Adoption of Program
Local government is unable to exercise an option
Local Option Regarding Program Features
No local option regarding program features
State Funding for Local Tax Loss
State reimburses all of the local government tax loss
Description of State Funding for Tax Loss
The state issues a refund check directly to the applicant.
Maryland State Department of Assessments and Taxation, Renters' Tax Credits
[http://dat.maryland.gov/realproperty/Pages/Renters%27-Tax-Credits.aspx accessed 07/10/2018] View Archived Source