Maryland
Assessment

Procedures
Manual

CATEGORY:

Exemptions

009

SUBJECT:

Effective Dates

400

TOPIC:

Granting or Removing Guideline Chart

010

Date Issued
6/18/85

Revision #2
10/1/00

 

001: Procedures
004: Owners
008: Taxable Property
009: Exemptions
012: Credits
014: Valuation
018: Operating Property of
Utilities and Railroads
019: Real Property
029: Notices
045: Assessment Records
067: Allowances and
Removal
229: Maryland Tax Court
232: Administration
255: Appeals
300: Triennial Assessments
350: Personal Property
375: Personal Property
 
Alphabetical Index
Numerical Index
 

 

This chart provides guidelines for granting or removing the various types of real property tax exemptions for individuals and organizations.

1. Blind Persons

(Sec. 7-207)

A $15,000 assessment exemption is granted on a pro rata or daily basis from the date in the year when the application for exemption is made. Refunds are permissible for up to three years if the County government allows refunds. Removed on the date of transfer and a pro rata tax bill should be issued to the new owner.
2. Surviving Spouse of Blind Persons

(Sec. 7-207)

Spouse may only continue to receive an exemption previously granted the blind person. No refunds are authorized. Remove on the date of transfer with a pro rata tax bill issued to the new owner. The exemption cannot be switched to a property subsequently acquired by the spouse.
3. Disabled Veterans

( Sec. 7-208)

A complete exemption from all taxes is granted on a pro rata or daily basis from the date in the year when application for exemption is made. Refunds of State taxes are permissible for three years but local governments may authorize by law refunds to the veteran himself as far back as 1950. Removed on the date of transfer and a pro rata tax bill is issued to the new owner.
4. Surviving Spouse of a Disabled Veteran

(Sec. 7-208)

The complete exemption is continued for the surviving spouse provided the spouse has not remarried. The surviving spouse of a veteran who did not apply for the exemption prior to death must act within three years of the veteran's death or lose all rights to refunds. The Supervisor may allow a refund of taxes for up to three years if the local government chooses not to require special application for refunds. A surviving spouse also may receive the exemption on any subsequently acquired property to the extent of the prior assessment on the property where the veteran actually resides. Removed on the date of transfer and a pro rata tax bill is issued to the new owner. It is also removed on the date of remarriage of the spouse.
5. Public Property Property acquired by the federal government, the State of Maryland, the counties, or any of the municipalities shall be exempt from taxation as of the date of transfer provided the physical review indicates that the property is being used for governmental purposes. The September 1 deadline for filing exemption applications does not apply to this category of property. A separate statutory provision Sec. 7-105(b) states that property tax is payable for the remainder of the taxable year from the date of sale of "formerly exempt" public property.
6. Religious Property

(Sec. 7-204)

A church or religious organization is required by Sec. 7-104 to submit its exemption application by no later than September 1, if the exemption is to be effective for the current taxable year. The only exception to this rule is a provision whereby an exemption is allowed to continue when the property is being transferred from one exempt organization to another such group. When a church or religious organization transfers the property to a private person, then the property becomes taxable as of next full year levy.
7. Charitable Educational Property

(Sec. 7-202)

A charitable or educational organization must be using the property for its stated purpose and submit an application by no later than September 1, if the exemption is to be made effective for the current taxable year. An exception does exist for charitable organizations at Section 7-202(d) to allow the exemption at the date of transfer if the property has a value less than $300,000. When a charitable organization transfers the property to a private person, then the property becomes taxable for the next full year levy.
8. Non-Profit Housing

Corporations

(Sections 7-502 and 7-503

Non-profit housing for the elderly or for low income families may be exempted by the Department provided the housing corporation enters into a payment in lieu of taxes agreement with the local government. The payment in lieu agreement can abate or reduce any previous taxes levied against the property. The exemption is removed from the next full year levy in event of transfers.


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