Maryland Assessment Procedure Manual

Category:	Tax Credits
Category No.:	012
Subject:	Application
Subject No.:	020
Topic:	Who is a Homeowner Eligible to Apply - Homeowners
Topic No.:	10
Date Issued:	10/8/1979
Revision Date:	5/1/1988
For purposes of applying for a Homeowners' Property Tax Credit, a "homeowner" means "an individual who by July 1, of the taxable year in which the credit is to be allowed, actually resides in a dwelling in which the person has a legal interest." Section 9-104(a) Tax-Property Article Md. Ann. Code (1986). "Legal interest includes any life estate, whether as sole owner, joint tenant, tenant in common, tenant by the entireties or through membership in a cooperative." Section 9-104 (a)(9). The legal interest shall be established as a matter of record title or by other lesser but still convincing proof such as a copy of a last will and testament. Persons purchasing their homes through a land installment sales contract have sufficient legal interest for application purposes. Section 9-104(a)(9). The definition of "homeowner" eligible to apply for this program also includes a homeowner who permits, pursuant to a court order or separation agreement, a spouse, former spouse or children of that person's family to reside in the dwelling without payment of rent. Section 9-104(a)(8). The Department administratively has determined that a "beneficiary of a property held in trust" has sufficient legal interest in order to apply. However, a property titled in the name of a corporation (even though held for the benefit of its principal owner) is not entitled to receive the Homeowners' Tax Credit. The Homeowners' Tax Credit enabling law no longer contains any special consideration due to the age or disability of applicants. The actual granting of a credit depends upon the combined gross household income of the applicant(s). Apart from the basis "legal interest" requirement described above, there are some special limitations set forth in this section of the manual which do restrict credit eligibility in individual cases.

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