2022 | Government

Legislation aims to extend duration of property tax credit for older residents, retired military members

Annual 20% credit would extend from five to seven years

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The Montgomery County Council and County Executive Marc Elrich are aiming to give some residents a bigger property tax break.

County Council President Gabe Albornoz introduced legislation on Tuesday on behalf of Elrich, which would extend the existing property tax credit for those who apply from five to seven years for:

  • Residents 65 or older who have lived in the same home for 40 or more years
  • Residents 65 or older who served in any branch of the U.S. armed forces, military reserves or the National Guard, or who are the surviving spouse of someone who did

The tax credit is 20% of the annual property taxes levied on homes, for the above residents. For non-military families, the credit applies to any homeowner whose property was assessed at up to $650,000 the first time they applied for the tax credit.

For military families, that maximum assessed value is $500,000. Applicants need to apply each year for the credit, but those who have already received the credit can now apply for up to seven years.

Ludeen McCartney-Green, a legislative attorney for the council, said the legislation is possible because of a state bill passed by the General Assembly this year, which removes the mandatory requirement of a five-year-cap on the property tax credit. The county did not have the authority to consider the extension until that state legislation was passed, she added.

The bill is time-sensitive because the new tax season for the state begins July 1, McCartney-Green said. Therefore, the council is expected to expedite its approval process, she said. Residents have until April 1 to apply for the credit through the county’s Department of Finance. 

A public hearing on the bill is scheduled for June 21 at 1:30 p.m.

Steve Bohnel can be reached at steve.bohnel@bethesdamagazine.com