Any new improvements, changes, or additions to residential buildings necessitated by the health or medical condition of a resident may not be considered taxable in the valuation of that building [See Tax-Property Article, Section 8-233]. Sufficient evidence of the medical necessity or required physical convenience must be presented to the Supervisor.

No exemption is to be given for any improvement, change or addition that does not add to the value of the property. For instance, a window air conditioner that is presently not assessable as real property would not result in an exemption. In addition, on residential real estate, a wheel chair ramp which is not valued and assessed would not be allowed as an exemption.

Any exemption made under this section of the law is to be based upon the application prepared by the physician of the property owner. The application is attached. Upon approval of application, the exemption shall be given for the current tax year in which the application was received.

Medical necessity exemptions shall be removed for the next full tax year after a transfer or notification that the individual whose medical condition required the improvement(s) no longer resides in the building. 

The exemption amount may not exceed ten percent (10%) of the total market value of the property (10% of Land and Improvement). Within the database’s Exemption Tab, enter the proper exemption code. The value of exemption to be deducted from the total market value may be entered as a percentage or a flat value.

Example of Calculation:

Total market value is $200,000. ($100,000 on land and $100,000 on Improvement). A qualifying owner of the medical necessity exemption adds an addition for medical purposes. Once added to the tax rolls, the total market value equals $230,000. ($100,000 on land and $130,000 on improvements). The allowable exemption on improvements would be $23,000 or 10% of the total market value.

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