By: Gary S. Williams, CFP®, CRPC®, AIF®
As a Certified Financial Planner™ professional in Howard County, Maryland, I'm excited to share the recent changes to the Aging in Place Tax Credit under County Bill 52-2022. This tax credit, equal to 20% of the eligible county tax, is designed to reduce property taxes for older adults who have lived in the same home for many years and meet additional eligibility criteria. The eligible Howard County tax is the amount of tax on the lesser of $650,000 or the assessed value of the dwelling reduced by the amount of any assessment on which a property tax credit is granted.
To be eligible for the Howard County property tax credit, you must be 65 years old by June 30 of the tax year and have lived in the same dwelling for at least thirty years. Alternatively, if you're 65 and a retired member with 20 years of active service in the Armed Forces of the United States or the surviving spouse of a 20-year active military service member, who is at least 65, you may also be eligible. An important criterion to receive the credit is the dwelling must be the applicant’s only residence. Another important consideration is a property owner may not receive an Aging in Place Tax Credit and a Senior Tax Credit.
The bill was signed by the County executive, Calvin Ball, on October 13, 2022, with an effective date of December 13, 2022 but the credit will be applied retroactively to July 1, 2022 tax bills. The longevity qualification for Tax Year 2023 and subsequent years is thirty years as of June 30 preceding the new tax year. The credit is granted for up to eight years if you remain qualified. However, if you qualified for the Aging in Place credit before July 1, 2022, you'll receive a credit for an additional three years.
To apply for the tax credit, you'll need to submit an initial application to the Howard County Department of Finance, which you can find on the County's website. Once your application is approved, the credit will be automatically renewed unless you're no longer eligible.
Overall, the Aging in Place Tax Credit can be a significant benefit for eligible Howard County residents who have lived in their home for thirty years. I encourage you to explore whether you qualify and take advantage of this opportunity to save on your property taxes!
Williams Asset Management and Commonwealth Financial Network® do not provide legal or tax advice.
This material has been provided for general informational purposes only and does not constitute either investment or tax advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a financial advisor or tax preparer.