The Department is adopting the following
procedure for determining the specific
amount of assessment eligible to receive
the surviving spouse exemption on a subsequently
acquired property used as a residence
by the spouse. Tax-Property Article §
7-208 (c) (3) provides that the exemption
for the subsequently acquired dwelling
house shall be “equal to the exemption
for the former dwelling house” occupied
by the veteran before his or her death.
If the value of the former dwelling for
the current taxable year is equal to or
more than the value of the subsequently
acquired dwelling, then a 100% exemption
should be granted to the new property
acquired by the spouse. The complete exemption
would be allowed in succeeding taxable
years so long as the spouse continues
to reside in the property and does not
remarry.
If the value of the former dwelling for
the current taxable year is less than
the value of the subsequently acquired
dwelling, then you should determine the
percentage ratio of the two values. For
example, the percentage ratio between
a former dwelling with a $150,000 value
to a newly acquired property with a value
of $200,000 is 75% ($150,000 ÷
$200,000 = 75%). Once the specific percentage
ratio is determined, then that amount
should be made part of the permanent assessment
record for the granting of the exemption
in succeeding taxable years. By entering
the partial exemption in this fashion,
annual calculations do not have to be
performed and the exemption amount will
increase relative to property appreciation.
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