Title 7-208 of the Tax-Property Article provides an exemption for a disabled active-duty service member who has a service-connected physical disability that is reasonably certain to continue for the life of the service member and was not caused or incurred by misconduct of the service member. The General Assembly intended to grant a complete exemption from taxes for disabled active-duty service members who must live with a physical disability that is most certain to remain a disability for the life of the service member. The disabled active-duty service member shall apply for the exemption and present certification of the disability from a physician licensed to practice medicine in Maryland or certification of the disability from the Veteran’s Administration. A disabled active-duty service member must also present proof of “active duty” as verified by their Commanding Officer.

Local Supervisors of Assessments are instructed to immediately approve such a disabled active-duty service member exemption when the other criteria of Section 7-208 is met. These criteria include a service-connected disability not incurred through misconduct, likelihood of disability to continue, active military duty and legal residency in the State of Maryland. Once approved, the Supervisor should use the proper exemption code (Disable Active Duty).

To be granted an exemption, an application must be made to the local assessment office for the county in which the property exists on the department’s application form. All sections must be completed prior to submission for approval. These sections include medical doctor’s diagnosis and signature, and the Commanding Officer’s signature verifying the applicant is on active-duty status. The exemption is prorated from any part of the taxable year that remains after the date in the year when the disabled active service member applies for the exemption.

The Department must accept an application for an exemption for a specific dwelling the individual intends to purchase before the house is purchased. Within 15 days of receipt, the Department must process the application and send the applicant a letter of preliminary approval or denial. If the application is preliminarily approved, the letter must include the amount of the tax exemption for the specific dwelling. Once the applicant becomes owner the exemption must be processed. The applicant does not have to file another application.

In early February of each year, a mailer is to be sent to all qualifying owners exempt during the current tax year as a reminder to re-certify active-duty status on the Department’s Active-Duty Certification Form by May 1; thus allowing the exemption for the upcoming July 1 tax year to continue. Failure of the owner to re-certify their active-duty status will result in the removal of the exemption for the upcoming July 1. When an exemption is removed an Out of Cycle Notice must be sent and the exemption code shall be removed in the database. After an exemption is removed for the upcoming July 1 tax bill, a disabled active-duty service member must submit an Active-duty Certification form by the following September 1 to have the exemption reinstated for the full year beginning July 1 prior. If an Active-duty Certification Form is not received by September 1, a new application must be submitted in full. For any newly submitted application, the exemption is prorated from any part of the taxable year that remains after the date in the year when the disabled active service member applies for the exemption.

All applications received after Sept 1 will have exemptions applied to their account as if they are a new applicant and will be prorated accordingly. New applicant applications received after February 1, but before July 1 will be prorated for the current year and remain exempt for the following July 1 tax year.

When a disabled active-duty service member seeks to transfer an exemption from one dwelling to a subsequently acquired residence, the Supervisor shall accept the prior certification for the remainder of the current tax year.

To obtain exemption initially, the disabled active-duty service member shall complete the application for exemption for disabled active-duty service member. Subsequently, the disabled active-duty service member shall complete the application for certification of active-duty status each year, in order to continue the exemption.

Active Duty Definition per 38 U.S. Code §101.24.A

(21)The term “active duty” means— (A)full-time duty in the Armed Forces, other than active duty for training; (B)full-time duty (other than for training purposes) as a commissioned officer of the Regular or Reserve Corps of the Public Health Service (i) on or after, or (ii) before that date under circumstances affording entitlement to “full military benefits” or (iii) at any time, for the purposes of; (C)full-time duty as a commissioned officer of the National Oceanic and Atmospheric Administration or its predecessor organization the Coast and Geodetic Survey (i) on or after, or (ii) before that date (I) while on transfer to one of the Armed Forces, or (II) while, in time of war or national emergency declared by the President, assigned to duty on a project for one of the Armed Forces in an area determined by the Secretary of Defense to be of immediate military hazard, or (III) in the Philippine Islands on, and continuously in such islands thereafter, or (iii) at any time, for the purposes of; (D)service as a cadet at the United States Military, Air Force, or Coast Guard Academy, or as a midshipman at the United States Naval Academy; and (E)authorized travel to or from such duty or service.​

A Application

B Certification