New Penalty for Improperly Received Homestead Credits

In response to a Baltimore Sun investigation of the Homestead Property Tax Credit, the General Assembly passed legislation that would impose a penalty on homeowners who improperly receive the Credit.  HB 1081, sponsored by Delegate Sandy Rosenberg, would require an individual who is found to be ineligible to receive a credit to repay the credit plus a 25% penalty.  As reported by the Baltimore Sun (limited free views available):

“Hopefully this significant penalty will deter people from abusing this tax credit in the future,” the bill’s sponsor, Del. Samuel I. “Sandy” Rosenberg, said Saturday evening after final passage by the House of Delegates. He said he expects Gov. Martin O’Malley to sign the bill, which would take effect June 1.

Rosenberg, a Baltimore Democrat, said the legislation was spurred by a Baltimore Sun investigation that found hundreds of city owners were receiving breaks on multiple homes in violation of state law.

MACo did not take a position on this legislation, but followed it closely throughout the session.

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