Counties Support Bill to Clarify Eligibility for Local Option Tax Credit

MACo Associate Director Kevin Kinnally submitted testimony to the House Ways & Means Committee in support of HB 1200 – Property Tax – Credit to Offset Increases in Local Income Tax Revenues – Eligibility. This bill alters the eligibility criteria for a property tax credit that local governments are authorized to provide homeowners in order to offset increases in local income tax revenues. Under the bill, in order to remain eligible for the property tax credit, the homeowner must have an application for the homestead property tax credit on file with the State Department of Assessments and Taxation.

From the MACo Testimony:

Under current law, a substantial number of properties are enjoying this tax credit without actually qualifying under the law, such as rental properties or second homes. Permitting those with second homes and rental properties to benefit from this credit is unfair to eligible homeowners and simply permits some to avoid paying their share of property taxes.

. . . HB 1200 provides a reasonable verification mechanism to ensure that only eligible homeowners are receiving credits to offset increases in local income tax revenues.

Follow MACo’s advocacy efforts during the 2020 legislative session on MACo’s Legislative Tracking Database.

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