Homestead Property Tax Credit Eligibility

Homestead Property Tax Credit Eligibility – Repeal of Application Requirement (NOT)

Chapters 564 and 565 of 2007 require homeowners, beginning in January 2008, to file a
specified application with the State Department of Assessments and Taxation (SDAT) to qualify for the homestead property tax credit. Specifically, Chapters 564 and 565 prohibit SDAT from authorizing the credit, and the State, county, and municipal governments are prohibited from granting the credit unless the application is filed •within 180 days following the date a dwelling is transferred for consideration to new ownership, for a dwelling that is transferred to new
ownership after December 31, 2007; or •on or before December 31, 2012, for a dwelling that was last transferred to new ownership on or before December 31, 2007.

Beginning January 2008, the first homestead tax credit applications were sent out to
Maryland homeowners with the annual assessment notices. In order to verify eligibility, this application requires homeowners to include their Social Security number on the application. As a governmental tax agency, SDAT has legal authority to possess federal tax information, including Social Security numbers for all Maryland residents. While SDAT is legally entitled to possess this information, there are several safeguards in place to ensure that this information is used legally and remains confidential.

However, after complaints were voiced by homeowners regarding the use of Social
Security numbers and the timeframe of the application process, legislation was introduced to either repeal or modify the application requirement enacted by Chapters 564 and 565. Senate Bill 239/House Bill 1256 (both failed) were introduced as emergency legislation and would have repealed Chapters 564 and 565 of 2007 so that homeowners would not be required to file an application with SDAT to qualify for the homestead property tax credit.