New Property Tax Credit for Seniors

If you are a senior that has owned and lived in a home that you own for at least 40 consecutive years or you have retired from one of the United States’ armed forces (Air Force, Army, Coast Guard, Marine Corps, Navy) , you could be eligible for a tax credit.

On March 7, 2017, the Montgomery County Council passed Bill 42-16, which will provide a tax credit for people who are 65 years of age or older and meet certain criteria.

According to the Montgomery County Department of Finance website, the senior requesting the tax credit must be on the deed for the property. However, not all owners must be over 65, just the one that meets the requirements. Also, not all owners must have owned and lived in the dwelling for at least 40 consecutive years, just the one that meets the requirements. Not all owners must be retired from the U. S. armed forces, just the one that meets the requirements.

This bill will provide a 20% credit, on County property taxes only, only for owner-occupied dwellings for which at least one of the owners meet the eligibility requirements noted above. The credit is granted for five consecutive years, and the credit is not available after that five year period. There is only one credit—if an owner is 65 or over and has owned and lived in the same dwelling for at least 40 consecutive years, AND that owner is also a military retiree, the tax credit is still a 20% tax credit on County property taxes only, for five consecutive years.

There are limits to the amount of the permissible tax assessment on the property and an application must be filed each year.

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