Senate repeals homestead credit application

Annapolis (Map, News) - The Maryland Senate overwhelmingly approved repeal of the required application for the Homestead Property Tax Credit passed just last year after confused homeowners complained loudly about the new requirement.

The original bill was designed to ferret out rental property owners who falsely claimed that they lived in the residence so they could claim the homestead exemption, which lowers taxes by putting a cap on assessment increases. All homeowners were required to fill out applications that were sent to them when their properties were reassessed.

Sponsored by Democratic Majority Leader Edward Kasemeyer, the repeal was opposed by county governments who hoped to capture $10 million in property taxes that were being avoided on rental properties. The repeal passed in 41 to 4 vote.

Sen. James Rosapepe, a Prince George’s County Democrat, was one of the four opponents. “This repeals a bill that we enacted that tries to crack down on fraud,” Rosapepe told his colleagues. With the rapid increase in assessments, raising property taxes on landlords, there was “there was tremendous incentive to claim that they live in the house that they don’t really live in.”

Kasemeyer said he understood the problem, but “many people overlooked the notice” that came with their assessments and would be hurt by the new rule.

Under the application procedure that was set up, “someone had to prove their innocence,” said Senate Republican leader David Brinkley.

The House must now act on the bill. A hearing on the House version of the same bill was held last month.

llazarick@baltimoreexaminer.com

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