Montgomery seniors 65-and-older who have owned and lived in their homes for at least 40 years or who are retired veterans are eligible for property tax credits

For Immediate Release: Tuesday, March 6, 2018

Eligible homeowners could receive 20 percent credits on their County property taxes; those seeking a credit must apply by April 1

Montgomery County seniors who are at least 65 years old (born on or before June 30, 1953) and who have either owned and lived in the same home for at least 40 years (since June 30, 1978) or are retired veterans of the U.S. military may be eligible to receive a tax credit of 20 percent over five years on their County property taxes. Those who believe they may be eligible must apply for the credit during each of the five years.

The County’s Department of Finance has established a website dedicated to information about the program, which was created by the County Council’s approval of Bill 42-16 and County Executive Ike Leggett’s signing of the bill. The site also has the application needed to apply for the credit. The website can be accessed at: montgomerycountymd.gov/Finance/bill-42-16.html .

A paper version of the application is available at the Department of Finance, which is located at 255 Rockville Pike, Suite L-15, in Downtown Rockville. For more information, residents can call the County information at 311 (if calling from a location within the County) or 240-777-0311 (if calling from a location out of the County).

There is a short application form for those who received the credit in the past year. Later in March, the County’s Department of Finance will be sending out form letters and short form applications to all who received the credit this year.

The bill went into effect on July 1, 2017. An application must be made each year for the tax credits. The applications are due on April 1, before the tax year that begins on July 1 of the same calendar year. Tax years begin on July 1, meaning the 2018 tax year begins on July 1, 2018.  The application deadline for 2018 tax credit is April 1, 2018.

Bill 42-16 created the property tax credit for residents who are at least 65 years old and who have owned and lived in the same home, with an assessed value of $650,000 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. Expedited Bill 13-17 expanded the property tax credit to include a retired member of the uniformed services of the United States Public Health Service Commissioned Corps (PHS) and the National Oceanic and Atmospheric Administration (NOAA). The expanded criteria also include members of the military reserves and the National Guard.

The applicant for a credit must be on the deed for the property.  Not all owners must be over 65, just the one that meets the requirements above. Not all owners must have owned and lived in the dwelling for at least 40 consecutive years—just the one that meets the requirements above. Not all owners must be retired from the U. S. armed forces—just the one that meets the requirements.

The credit is granted for five consecutive years, and the credit is not available after that five-year period. There is only one credit—if an owner is 65 or over and has owned and lived in the same dwelling for at least 40 consecutive years and that owner is also a military retiree, the tax credit is still a 20 percent tax credit on County property taxes only, for five consecutive years.

The tax credit will appear as a line item deduction on the annual tax bill in July 2018. Homeowners can review their bill at: montgomerycountymd.gov/propertytax.

The site provides information by looking up tax bills by address, by account number or by bill number.

The revised bill amount will also be available by calling MC311 (dial 311 when calling from within the County, and dial 240-777-0311 when calling from outside of Montgomery County).

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Release ID: 18-465
Media Contact: Patrick Lacefield 240-777-6507, Neil H. Greenberger 240-205-1915