Tax-property article, section 7-208(b)(1)(iii) provides for an exemption for the dwelling (principal residence) of a surviving spouse of an individual who died in the line of duty. The surviving spouse must fill out an application which shall contain a certification that the individual died while in active service as a result of an injury or disease incurred in the line of duty.

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.

The exemption criteria are as follows:

A) the dwelling is owned by the surviving spouse;

B)  the dwelling was:

                1)  owned by the individual who died in the line of duty at the time of the individual's death;

                2)  acquired by the surviving spouse within 2 years of the individual who died in the line of duty's death, if the individual or the surviving spouse was domiciled (had their principal residence) in Maryland as of the date of the individual's death; or

                3)  acquired by the surviving spouse after the surviving spouse qualified for the exemption for a former dwelling under item 1 or 2 above, to the extent of the previous exemption.   

              Example 1. An individual who died in the line of duty owned a dwelling in Maryland when the individual died.  The surviving spouse applies for the surviving spouse of an individual who died in the line of duty exemption.  The surviving spouse owns the dwelling. The value of the dwelling is $i,000,000.  The surviving spouse will qualify for a complete exemption on the dwelling.  The surviving spouse later sells the dwelling and acquires a new dwelling in Maryland with a value of $1,200,000.  The surviving spouse will qualify for a $1,000,000 exemption on the new dwelling.

             Example 2. An individual died in the line of duty on July 20, 2020. The individual had their principal residence (domiciled) in Maryland when the individual died.  The surviving spouse buys a dwelling in Maryland on July 15, 2022 and applies for the exemption.  The surviving spouse qualifies for the exemption because the surviving spouse purchased the dwelling within two years of the individual's death, and the individual was domiciled (had their principal residence) in Maryland when the individual died.