2013 Maryland Code
TAX - PROPERTY
§ 10-204 - Deferral of county property tax -- Elderly or disabled homeowners

§10-204.

(a) Notwithstanding Subtitle 1 of this title, the governing body of a county may authorize, by law, a payment deferral of county property tax for residential real property occupied as the principal residence of the owner.

(b) An owner is eligible for a payment deferral under subsection (a) of this section if the owner or at least 1 of the owners:

(1) has resided in the dwelling for a period of at least 5 consecutive years;

(2) (i) is at least 65 years of age;

(ii) has been found permanently and totally disabled and has qualified for benefits under:

1. the Social Security Act;

2. the Railroad Retirement Act;

3. any federal act for members of the United States armed forces; or

4. any federal retirement system; or

(iii) has been found permanently and totally disabled by a county health officer or the Baltimore City Commissioner of Health; and

(3) meets the income eligibility requirements determined under subsection (c) of this section.

(c) The governing body of a county that authorizes a payment deferral under subsection (a) of this section shall specify:

(1) the amount of the tax that may be deferred, not exceeding the increase in the county property tax from the date the taxpayer elects to defer the payment of the tax;

(2) restrictions on the amount of the real property eligible for a payment deferral under subsection (a) of this section, except that the amount of eligible property may not be less than the dwelling and curtilage, as determined by the supervisor;

(3) the duration of the payment deferral under subsection (a) of this section;

(4) the rate of interest to be paid on the county property tax payment from the due date without a deferral until the date that the county property tax is paid;

(5) that any mortgagee or beneficiary under a deed of trust be entitled to receive notice of the deferral and of the amount of tax to be deferred; and

(6) the level of income to determine eligibility for the payment deferral under subsection (a) of this section.

(d) The county property tax that is deferred under this section and any interest specified in the law authorizing the deferral are due when the deferral ends as specified in the law authorizing the deferral.

(e) The governing body of a county that authorizes a payment deferral under subsection (a) of this section shall specify the cumulative amount of the deferral and related interest in the taxpayer’s annual property tax bill.

(f) A lien shall attach to the property in the amount of all deferred taxes and interest. The lien shall remain attached until the deferred taxes and interest are paid.

(g) The governing body of a county that authorizes a payment deferral under subsection (a) of this section shall authorize the deferral by written agreement. The agreement shall reflect the terms and conditions of the deferral including notice of the lien. The agreement shall be recorded in the land records of the county.

(h) Penalties may not be charged during the period of the deferral on any tax payments deferred under this section.

§ 10-204 - 1. Deferral of county property tax -- Montgomery County

(a) Authorized. -- Notwithstanding Subtitle 1 of this title, the governing body of Montgomery County may authorize, by law, a payment deferral of the county property tax for residential real property occupied as the principal residence of the owner.

(b) Eligibility. -- An owner is eligible for a payment deferral under subsection (a) of this section if the owner or at least 1 of the owners:

(1) has resided in the dwelling for a period of at least 5 consecutive years; and

(2) meets the income eligibility requirements determined under subsection (c) of this section.

(c) Terms, conditions, etc. -- The governing body of Montgomery County shall specify:

(1) the amount of the tax that may be deferred, not exceeding the increase in the county property tax from the date the taxpayer elects to defer the payment of the tax;

(2) restrictions on the amount of the real property eligible for a payment deferral under subsection (a) of this section, except that the amount of eligible property may not be less than the dwelling and curtilage, as determined by the supervisor;

(3) the duration of the payment deferral under subsection (a) of this section;

(4) the rate of interest to be paid on the county property tax payment from the due date without a deferral until the date that the county property tax is paid;

(5) that any mortgagee or beneficiary under a deed of trust be entitled to receive notice of the deferral and of the amount of tax to be deferred; and

(6) the level of income to determine eligibility for the payment deferral under subsection (a) of this section.

(d) Payment due date. -- The county property tax that is deferred under this section and any interest specified in subsection (c)(4) of this section are due when the deferral ends as specified in subsection (c)(3) of this section or immediately upon transfer of ownership of the property for which the property tax has been deferred.

(e) Amount of deferral and interest. -- The governing body of Montgomery County shall specify the cumulative amount of the deferral and related interest in the taxpayer's annual property tax bill.

(f) Liens. -- A lien shall attach to the property in the amount of all deferred taxes and interest. The lien shall remain attached until the deferred taxes and interest are paid.

(g) Written agreements. -- The governing body of Montgomery County shall authorize the deferral by written agreement. The agreement shall reflect the terms and conditions of the deferral, including notice of the lien. The agreement shall be recorded in the land records of the county.

(h) Penalties. -- Penalties may not be charged during the period of the deferral on any tax payments deferred under this section.

§ 10-204 - 2. Deferral of municipal corporation property tax -- Elderly or disabled homeowners

(a) Authorization. -- Notwithstanding Subtitle 1 of this title, the governing body of a municipal corporation may authorize, by law, a payment deferral of municipal corporation property tax for residential real property occupied as the principal residence of the owner.

(b) Eligibility. -- An owner is eligible for a payment deferral under subsection (a) of this section if the owner or at least 1 of the owners:

(1) has resided in the dwelling for a period of at least 5 consecutive years;

(2) (i) is at least 65 years of age;

(ii) has been found permanently and totally disabled and has qualified for benefits under:

1. the Social Security Act;

2. the Railroad Retirement Act;

3. any federal act for members of the United States armed forces; or

4. any federal retirement system; or

(iii) has been found permanently and totally disabled by a county health officer or the Baltimore City Commissioner of Health; and

(3) meets the income eligibility requirements determined under subsection (c) of this section.

(c) Terms, conditions, etc. -- The governing body of a municipal corporation that authorizes a payment deferral under subsection (a) of this section shall specify:

(1) the amount of the tax that may be deferred, not exceeding the increase in the municipal corporation property tax from the date the taxpayer elects to defer the payment of the tax;

(2) restrictions on the amount of the real property eligible for a payment deferral under subsection (a) of this section, except that the amount of eligible property may not be less than the dwelling and curtilage, as determined by the supervisor;

(3) the duration of the payment deferral under subsection (a) of this section;

(4) the rate of interest to be paid on the municipal corporation property tax payment from the due date without a deferral until the date that the municipal corporation property tax is paid;

(5) that any mortgagee or beneficiary under a deed of trust be entitled to receive notice of the deferral and of the amount of tax to be deferred; and

(6) the level of income to determine eligibility for the payment deferral under subsection (a) of this section.

(d) Payment due date. -- The municipal corporation property tax that is deferred under this section and any interest specified in the law authorizing the deferral are due when the deferral ends as specified in the law authorizing the deferral.

(e) Amount of deferral and interest. -- The governing body of a municipal corporation that authorizes a payment deferral under subsection (a) of this section shall specify the cumulative amount of the deferral and related interest in the taxpayer's annual property tax bill.

(f) Liens. -- A lien shall attach to the property in the amount of all deferred taxes and interest. The lien shall remain attached until the deferred taxes and interest are paid.

(g) Written agreements. -- The governing body of a municipal corporation that authorizes a payment deferral under subsection (a) of this section shall authorize the deferral by written agreement. The agreement shall reflect the terms and conditions of the deferral including notice of the lien. The agreement shall be recorded in the land records of the county.

(h) Penalties. -- Penalties may not be charged during the period of the deferral on any tax payments deferred under this section.

§ 10-204 - 3. Semiannual payment schedule for property tax

(a) Definitions. --

(1) In this section the following words have the meanings indicated.

(2) "Owner-occupied residential property" means the principal residence of a homeowner as defined in § 9-105 of this article.

(3) "Business property" means real property:

(i) that has been assigned a commercial use code by the Department; and

(ii) for which the total State, county, municipal corporation, and special taxing district property taxes for the taxable year do not exceed $ 100,000.

(b) Semiannual schedule authorized. -- Notwithstanding Subtitle 1 of this title:

(1) the governing body of a county shall provide a semiannual payment schedule for State, county, and special taxing district property taxes due on owner-occupied residential property or business property; and

(2) the governing body of a municipal corporation shall provide a semiannual payment schedule for municipal corporation and special taxing district property taxes due on owner-occupied residential property or business property.

(c) Election of schedule. -- A semiannual payment schedule under this section shall apply:

(1) at the time of the transfer of property purchased on or after July 1, 2000; and

(2) to any current or future owner of owner-occupied residential property or business property, regardless of whether the property was purchased before July 1, 2000.

(d) Applicability; effectiveness of election. --

(1) The semiannual payment schedule under this section shall apply to:

(i) the property tax due for the tax year following transfer of the property; and

(ii) the property tax due and not in arrears for the current tax year for any transfer occurring on or after July 1 but on or before September 30.

(2) The first installment of a semiannual payment shall be paid on or before September 30.

(e) Service charge. -- A semiannual payment schedule may include a service charge to be paid with the second installment.

(f) Amount of service charge. -- A service charge:

(1) shall be:

(i) adopted by the taxing authority that collects the property taxes after obtaining the prior approval of the amount of the service charge from the Department, as part of adoption of the property tax rate under §§ 6-301 through 6-303 of this article;

(ii) applicable to all property tax being collected by the taxing authority on the semiannual payment schedule for itself and for any other taxing authority;

(iii) expressed as a percent of the amount of tax due at the second installment and shown on the tax bill as a percent and actual dollar amount charged; and

(iv) calculated in an amount:

1. reasonably equivalent to the anticipated lost interest income associated with the 3-month delay in payment of the second installment by multiplying the amount of the second installment by a rate not exceeding 1.5%; and

2. covering administrative expenses associated with the semiannual payment not exceeding the lesser of the actual expenses incurred in the preceding fiscal year per semiannual tax account as approved by the State Department of Assessments and Taxation or 10% of the charge for the anticipated lost interest income as calculated in item 1 of this item;

(2) does not apply if both installments of property tax are paid on or before September 30 of the taxable year; and

(3) may not be considered to be a property tax for the purposes of any provision of a local law or charter that limits the property tax rate or property tax revenues.

(g) Information concerning service charge and anticipated lost interest. -- The local taxing authority shall provide to the Department by May 1 of each year, information that substantiates that the proposed service charge for the anticipated lost interest is reasonably equivalent to the amount of interest that will be lost as a result of the semiannual payment.

(h) Contents of property tax bill; certain collection systems subject to Department approval. --

(1) The property tax bill under a semiannual payment schedule:

(i) shall state:

1. the amount of the tax due if paid in full, including any applicable discounts for early payment;

2. the amount of the tax due if paid in semiannual installments, including any applicable discounts for early payment of the first installment;

3. the amount of any service charge to be paid with the second installment unless the second installment is paid on or before September 30 of the taxable year;

4. that the service charge does not apply if both installments are paid on or before September 30 of the taxable year; and

5. the date the tax payment is due; and

(ii) shall be subject to approval by the Department of Assessments and Taxation.

(2) The Department shall approve any local semiannual payment schedule collection that:

(i) provides efficient and cost-effective collection of taxes; and

(ii) provides two semiannual coupons, two semiannual billing forms, or a similar method that allows taxpayers to pay on a semiannual basis.

(3) Local semiannual payment schedule collection systems that are not approved by the Department shall utilize 2 semiannual payment coupons that shall be submitted with the appropriate payment.

(i) Payment due date. -- A payment under a semiannual schedule:

(1) for the first installment:

(i) is due on July 1 of the tax year; and

(ii) may be paid without interest on or before September 30 of the tax year; and

(2) for the second installment:

(i) is due on December 1 of the tax year;

(ii) except for the service charge, may be paid without interest on or before December 31 of the tax year; and

(iii) may be prepaid without the service charge or interest on or before September 30 of the tax year.

(j) Payment from escrow account. --

(1) If an escrow account is established for the payment of the property tax, the escrow account servicer shall pay tax in semiannual installments unless the escrow account servicer has received written direction from the property owner or borrower to pay property tax in annual payments.

(2) If a taxpayer provides written direction to an escrow account servicer at least 60 days prior to the beginning of the tax year, property taxes shall be paid on an annual payment basis on behalf of that taxpayer by the escrow account servicer in the tax year that begins immediately following the year in which the written direction was received.

(3) If a taxpayer provides written direction to an escrow account servicer less than 60 days prior to the beginning of the tax year, property taxes may be paid on an annual payment basis on behalf of that taxpayer by the escrow account servicer in the tax year that begins immediately following the year in which the written direction was received.

(k) Prince George's County. --

(1) The governing body of Prince George's County may authorize, by law, an installment payment schedule of no more than six payments each year for county, municipal, and special taxing district property taxes due on owner-occupied residential property owned by a homeowner if:

(i) the homeowner is at least 62 years old; and

(ii) the owner-occupied residential property is not subject to a deed of trust, mortgage, or other encumbrance.

(2) The governing body of Prince George's County shall provide, by law, for:

(i) any additional eligibility criteria for the installment payment schedule under this subsection;

(ii) the process for electing an installment payment schedule;

(iii) the due date of each payment installment; and

(iv) any other provision necessary to carry out the provisions of this subsection.

§ 10-204 - 4. Deferral of county property tax -- Charles County

(a) Authorization. -- Notwithstanding Subtitle 1 of this title, the governing body of Charles County may authorize, by law, a payment deferral of the county property tax for residential real property occupied as the principal residence of the owner.

(b) Eligibility. -- An owner is eligible for a payment deferral under subsection (a) of this section if the owner or at least 1 of the owners:

(1) has resided in the dwelling for a period of at least 5 consecutive years; and

(2) meets the income and age eligibility requirements determined under subsection (c) of this section.

(c) Terms, conditions, etc. -- If the governing body of Charles County authorizes a payment deferral under this section, the governing body shall specify:

(1) the minimum age of an owner to determine eligibility for the payment deferral;

(2) the amount of the tax that may be deferred, not exceeding the increase in the county property tax from the date the taxpayer elects to defer the payment of the tax;

(3) the duration of the payment deferral under subsection (a) of this section;

(4) restrictions on the amount of the real property eligible for a payment deferral, except that the amount of eligible property may not be less than the dwelling and curtilage, as determined by the supervisor;

(5) the rate of interest to be paid on the county property tax payment from the due date without a deferral until the date that the county property tax is paid;

(6) that any mortgagee or beneficiary under a deed of trust be entitled to receive notice of the deferral and of the amount of tax to be deferred; and

(7) the level of income to determine eligibility for the payment deferral.

(d) Payment due date. -- The county property tax that is deferred under this section and any interest specified in subsection (c)(5) of this section are due:

(1) when the eligible owner dies; or

(2) immediately upon transfer of ownership of the property for which the property tax has been deferred.

(e) Amount of deferral and interest. -- The governing body of Charles County shall specify the cumulative amount of the deferral and related interest in the taxpayer's annual property tax bill.

(f) Liens. --

(1) A lien shall attach to the property in the amount of all deferred taxes and interest.

(2) The lien shall remain attached until the deferred taxes and interest are paid.

(g) Written agreements. --

(1) The governing body of Charles County shall authorize the deferral by written agreement.

(2) The agreement shall reflect the terms and conditions of the deferral, including notice of the lien.

(3) The agreement shall be recorded in the land records of the county.

(h) Penalties. -- Penalties may not be charged during the period of the deferral on any tax payments deferred under this section.

§ 10-204 - 5. Deferral of county property tax -- Washington County

(a) In general. -- Notwithstanding Subtitle 1 of this title, the governing body of Washington County may authorize, by law, a payment deferral of the county property tax for residential real property occupied as the principal residence of the owner.

(b) Eligibility. -- An owner is eligible for a payment deferral under subsection (a) of this section if the owner or at least one of the owners:

(1) has resided in the dwelling for a period of at least 5 consecutive years;

(2) is at least 65 years of age; and

(3) meets the income eligibility requirements determined under subsection (c) of this section.

(c) Terms, conditions, etc. -- If the governing body of Washington County authorizes a payment deferral under this section, the governing body shall specify:

(1) the amount of the tax that may be deferred, not exceeding the increase in the county property tax from the date the taxpayer elects to defer the payment of the tax;

(2) the duration of the payment deferral under subsection (a) of this section;

(3) restrictions on the amount of the real property eligible for a payment deferral, except that the amount of eligible property may not be less than the dwelling and curtilage, as determined by the supervisor;

(4) the rate of interest, not exceeding an annual rate of 3%, to be paid on the county property tax payment from the due date without a deferral until the date that the county property tax is paid;

(5) that any mortgagee or beneficiary under a deed of trust be entitled to receive notice of the deferral and of the amount of tax to be deferred; and

(6) the level of income to determine eligibility for the payment deferral.

(d) Payment due date. -- The county property tax that is deferred under this section and any interest specified in subsection (c)(4) of this section are due:

(1) when the deferral ends as specified in subsection (c)(2) of this section;

(2) when the eligible owner dies; or

(3) immediately on transfer of ownership of the property for which the property tax has been deferred.

(e) Amount of deferral and interest. -- The governing body of Washington County shall specify the cumulative amount of the deferral and related interest in the taxpayer's annual property tax bill.

(f) Liens. --

(1) A lien shall attach to the property in the amount of all deferred taxes and interest.

(2) The lien shall remain attached until the deferred taxes and interest are paid.

(g) Written agreement. --

(1) The governing body of Washington County shall authorize the deferral by written agreement.

(2) The agreement shall reflect the terms and conditions of the deferral, including notice of the lien.

(3) The agreement shall be recorded in the land records of the county.

(h) Penalties. -- Penalties may not be charged during the period of the deferral on any tax payments deferred under this section.

(i) Notice. -- In each annual property tax bill, the governing body of Washington County shall provide notice of, and specify the details of eligibility for, a payment deferral under this section.

§ 10-204 - 6. Deferral of county property tax -- Anne Arundel County

(a) In general. -- Notwithstanding Subtitle 1 of this title, the governing body of Anne Arundel County may authorize, by law, a payment deferral of the county property tax for residential real property occupied as the principal residence of the owner, the provisions of which shall comply with the provisions of subsections (b) through (h) of this section.

(b) Eligibility. -- An owner is eligible for a payment deferral under subsection (a) of this section if the owner or at least one of the owners:

(1) has resided in the dwelling for a period of at least 5 consecutive years;

(2) (i) is at least 62 years of age;

(ii) has been found permanently and totally disabled and has qualified for benefits under:

1. the Social Security Act;

2. the Railroad Retirement Act;

3. any federal act for members of the United States armed forces; or

4. any federal retirement system; or

(iii) has been found permanently and totally disabled by a county health officer or the Baltimore City Commissioner of Health; and

(3) meets the income eligibility requirements determined under subsection (c) of this section.

(c) Terms, conditions, etc. -- If the governing body of Anne Arundel County authorizes a payment deferral under this section, the governing body shall specify:

(1) the amount of the tax that may be deferred, not exceeding the increase in the county property tax from the date the taxpayer elects to defer the payment of the tax;

(2) the duration of the payment deferral under subsection (a) of this section;

(3) restrictions on the amount of the real property eligible for a payment deferral, except that the amount of eligible property may not be less than the dwelling and curtilage, as determined by the supervisor;

(4) the rate of interest to be paid on the county property tax payment from the due date without a deferral until the date that the county property tax is paid;

(5) that any mortgagee or beneficiary under a deed of trust be entitled to receive notice of the deferral and of the amount of tax to be deferred; and

(6) the level of income to determine eligibility for the payment deferral.

(d) Payment due date. -- The county property tax that is deferred under this section and any interest specified in subsection (c)(4) of this section are due:

(1) when the deferral ends as specified in subsection (c)(2) of this subsection;

(2) when the eligible owner dies; or

(3) immediately on transfer of ownership of the property for which the property tax has been deferred.

(e) Amount of deferral and interest. -- The governing body of Anne Arundel County shall specify the cumulative amount of the deferral and related interest in the taxpayer's annual property tax bill.

(f) Liens. --

(1) A lien shall attach to the property in the amount of all deferred taxes and interest.

(2) The lien shall remain attached until the deferred taxes and interest are paid.

(g) Written agreement. --

(1) The governing body of Anne Arundel County shall authorize the deferral by written agreement.

(2) The agreement shall reflect the terms and conditions of the deferral, including notice of the lien.

(3) The agreement shall be recorded in the land records of the county.

(h) Penalties. -- Penalties may not be charged during the period of the deferral on any tax payments deferred under this section.