For Immediate Release: Tuesday, March 7, 2017
Tax credit for longtime homeowners
and for retired senior military veterans
approved by Montgomery Council
Councilmember Nancy Floreen says bill ‘will offer help
to people who have lived here a long time and helped
build this County and to those who served our country’
ROCKVILLE, Md., March 7, 2017—The Montgomery County Council today approved Bill 42-16 to create a new property tax credit for residents who are at least 65 years old and who have lived in the same home for at least 40 years. The bill also provides a tax credit for residents 65 or older who are retired veterans of the U.S. military.
Councilmember Nancy Floreen was the lead sponsor of Bill 42-16. Councilmembers Sidney Katz, Nancy Navarro and Craig Rice were co-sponsors. The bill was enacted by an 8-0 vote. Councilmember Marc Elrich was not present.
As introduced, Bill 42-16 would have created a new property tax credit for residents who are at least 65 years old and who have lived in the same home, with an assessed value of $500,000 or less, for at least 40 years. Retired members of the U.S. Armed Forces (Army, Navy, Marines, Air Force and Coast Guard) who are at least 65 years old also are eligible for the credit if their home has an assessed value of $500,000 or less.
However, the approved bill included an amendment recommended by the Council’s Government Operations and Fiscal Policy Committee. The amendment increases the maximum assessed value for eligibility for 40-year homeowners to $650,000.
Residents who qualify are eligible to receive a 20 percent credit for the property tax imposed on their homes. The credit would be granted annually for up to five years, subject to application requirements.
“We want to do whatever we can to encourage people who love living in Montgomery County to continue to be able to live here as their life circumstances change,” said Councilmember Floreen, who chairs the Council’s Planning, Housing and Economic Development Committee. “We understand that this can be an expensive place to live for many people at the prime of their earning power, and it gets more challenging for those in retirement years. With this bill, we can offer some help to people who have lived here a long time and helped build this County and to those who served our country and helped preserve and protect all the things for which we are thankful.”
The bill will go into effect on July 1, 2017. Those seeking a credit must apply by April 1 of the year in which the tax credit is sought. However, for 2017 only, the deadline was extended to Sept. 1.
# # # # Release ID: 17-068