Department of Legislative Services
Maryland General Assembly
FISCAL AND POLICY NOTE
Senate Bill 48 (Chair, Budget and Taxation Committee)(By Request -
Departmental - Assessments and Taxation)
Budget and Taxation Ways and Means
Property Tax - Homeowners' and Renters' Property Tax Credits - Deadlines
This departmental bill alters various deadlines for the application and processing for the
homeowners’ and renters’ property tax credits. The bill takes effect June 1, 2020, and
applies to taxable years beginning after June 30, 2020.
State Effect: The change is procedural in nature and does not directly affect governmental
Local Effect: None.
Small Business Effect: The State Department of Assessments and Taxation (SDAT) has
determined that this bill has minimal or no impact on small business (attached). The
Department of Legislative Services concurs with this assessment.
Bill Summary/Current Law: The bill (1) extends the deadline to apply for the Renters’
Property Tax Credit Program from September 1 to October 1; (2) extends the deadline to
apply for the Homeowners’ Property Tax Credit Program from September 1 to October 1;
(3) specifies that SDAT must make the application for the Homeowners’ Property Tax
Credit Program available by February 15; and (4) changes the date by which SDAT must
request specified billing information from local governments from May 1 to April 15.
Background: The Homeowners’ Property Tax Credit Program (Circuit Breaker) is a
State-funded program (i.e., the State reimburses local governments) providing credits
against State and local real property taxation for homeowners who qualify based on a
sliding scale of property tax liability and income. The fiscal 2020 State budget included
$66.5 million in funding for the program. Approximately 52,800 homeowners are expected
to benefit from the program in fiscal 2020.
The Renters’ Property Tax Credit Program provides financial assistance for elderly,
disabled, and certain low-income renters from the cost attributable to State and local real
property taxes. The concept behind the program is that renters indirectly pay property taxes
as part of their rent and, thus, should have some protection, as do homeowners. The
program makes payments directly to eligible renters to provide relief for the “assumed
property tax” that renters indirectly pay as part of their rent. Approximately
9,900 individuals are expected to benefit from the program in fiscal 2020, at an estimated
State cost of $4.4 million.
The bill is intended to make the submission and processing of applications for the
Homeowners’ Property Tax Credit and Renters’ Property Tax Credit programs easier for
both SDAT and program applicants.
Currently, SDAT must process all homeowners’ applications received by May 1 so that
they can be included on the counties’ July 1 tax bills. As a result, SDAT must process all
applications and be ready to transmit to local governments as soon as May 28 for some
counties. SDAT reports that moving this deadline from May 1 to April 15 would provide
the department two additional weeks so as to ensure that all of these applications are
processed accurately and on time.
Current law requires applicants to submit their annual homeowners’ and renters’ property
tax credit applications by September 1, but allows SDAT to accept applications through
October 31 for “good cause.” The bill moves the initial deadline to October 1, which will
allow for additional time for individuals to submit applications.
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Maryland Association of Counties (MACo); the State
Department of Assessments and Taxation; Department of Legislative Services
SB 48/ Page 2
Fiscal Note History: First Reader - January 8, 2020
af/hlb Third Reader - January 23, 2020
Analysis by: Michael Sanelli Direct Inquiries to:
SB 48/ Page 3
ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL: Property Tax – Homeowners’ and Renters’ Property Tax Credit -
BILL NUMBER: Senate Bill 48
PREPARED BY: Jason Davidson, 410-767-5754, Jason.email@example.com
PART A. ECONOMIC IMPACT RATING
This agency estimates that the proposed bill:
_X__ WILL HAVE MINIMAL OR NO ECONOMIC IMPACT ON MARYLAND SMALL
WILL HAVE MEANINGFUL ECONOMIC IMPACT ON MARYLAND SMALL
PART B. ECONOMIC IMPACT ANALYSIS
The proposed legislation will not have an economic impact.
SB 48/ Page 4Statutes affected:
Text - First - Property Tax - Homeowners' and Renters' Property Tax Credits - Deadlines: 9-102 Tax Property, 9-104 Tax Property
Text - Third - Property Tax - Homeowners' and Renters' Property Tax Credits - Deadlines: 9-102 Tax Property, 9-104 Tax Property