Item 12 - Do you own any other real estate in the State of Maryland?

The purpose of the question in item 12 is twofold. First, a listing of the other real estate owned will assist the local employee in determining if the full cash value of these other properties are sufficient to place the applicant over the $200,000 net worth limitation when added to the capitalized value of other assets shown on the income tax return as interest income and dividends. In that event, the local Tax Credit employee should send form letter HTC-4 which provides the applicant the opportunity to refute the net worth determination before a formal denial letter is sent. Form letter HTC-4 should not be sent if the applicant can be denied outright on the basis of the gross income reported. At the same time, local Tax Credit employees are directed to write the words "net worth inquiry" in the space at the bottom of item 12 to show that a check was made even though the application ultimately is denied on the basis of gross income.

Second, the other purpose for including a question on the application form about the real estate owned is to provide a further check on persons attempting to obtain tax credits on two properties in different counties within the State. When an applicant indicates in item 12 that other real property is owned, the application form also requires the person to attach a separate list of where the properties are located and the specific property account numbers. A form letter is included with these instructions for applicants not providing all the information requested about the other properties. (Form Letter HTC-8). Moreover, Form Letter HTC-7 for missing information must be sent to any applicant who failed to check the yes or no answer on item 12 about other property owned.

In instances where applicants have answered yes to the question about other property owned and who provided a list of properties owned other than in the one local County, the local Tax Credit employee should place these applications in a separate folder for further review by the respective central office coordinator. An interoffice form (Form HTC-8A) has been included in the manual on which the local employee should list the other properties owned by the applicant for a cross check by the central office coordinator. The coordinator will in turn contact the other appropriate Assessment Offices to ascertain if the applicant has submitted any applications for the other properties.

The coordinator will return the interoffice form with a notation as to whether the local Tax Credit employee should proceed with the processing of the particular application.

As an additional check to assure procedures compliance and a check on the correctness of the information supplied by applicants, the Department will perform a computerized audit at the end of each application year to produce a listing of any dual tax credits throughout the State to persons with the same Social Security numbers or to persons who are husband and wife owning multiple properties. For this reason, it is again essential that every applicant be required to check an answer to item 12 in order that the Department will be in a position to possibly take further legal action against applicants deliberately misstating this information in violation of perjury oath on the application to which they affixed their signatures.