The Tax Credit Section of the Department is also charged with responsibility for administering a tax credit program for
renters who are age 60 and over or who are 100% disabled. See Title 9-102 of the Tax-Property Article. The purpose of the Tax Credit Law is to
provide to renters who indirectly pay property taxes on their rental unit through the monthly rent, a credit (same as homeowners') if the portion
of their rent attributable to property taxes exceeds a fixed limit for their specific income level.
The eligibility standards for the Renters' Tax Credit Program are in many respects identical to those established in the Homeowners' Tax Credit
Program. The Renters' Program utilizes the exact same graduated formula for establishing the "tax limits" for income level. The Renters' Tax
Credit Program has the same statutory definition of gross income as being income from all sources, whether taxable or not, and includes all pension
benefits such as Social Security and Railroad Retirement. The same net worth and six-month minimum residence requirements in the Homeowners' Program
apply here as well.
There are four major differences between the Renters' and the Homeowners' Tax Credit Programs. The Renters' Tax Credit Program operates on a calendar
instead of a taxable year basis and the filing deadline is much shorter since it comes on July 1 of the year. The Renters' Program utilizes fifteen
percent of the total rent paid in the year (minus any included utility costs) as the amount of assumed taxes since no actual tax bill is charged to
each renter. Finally, the maximum amount of credit for eligible renters is $500 as compared to a $1,500 maximum for homeowners.
Applications and further information are available from the central Tax Credit Office in Towson by telephoning 321-3750 (in the Baltimore metropolitan
area) and at 1-800-492-3790 (toll-free for those living elsewhere). The central office processes the applications and has the Comptroller of the
Treasury issue direct checks to persons found eligible for the credit.
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