The HOTC and the County Supplement to the HOTC are progressive tax credits administered by the State of Maryland Department of Assessments and Taxation (SDAT) where lower income households receive a larger credit on their property taxes. Bill 3-25 is aimed at helping residents who have limited or fixed incomes and are cost-burdened because of rising property assessments by doing three things to expand the pool of eligible individuals who can apply for the County Supplement to the HOTC credit:  

• increasing the combined income eligibility level from $60,000 to $75,000; 

• increasing the net worth criteria from $200,000 to $250,000; and  

• increasing from $300,000 to $375,000 the assessed value upon which the credit could apply. 

“I am proud that the Homeowners' Tax Credit bill offered by the Government Operations and Fiscal Policy Committee has been passed by the full Council,' said GO Committee Chair and Council President Kate Stewart. "This assistance is especially important for seniors on fixed incomes and those who are the most impacted by rising assessments. I appreciate the collaborative work of my colleagues to find an equitable path forward to provide a targeted solution."

“As property tax assessments continue to rise across Montgomery County, homeowners on fixed or limited incomes are facing significant housing affordability challenges and need relief,” said Councilmember Andrew Friedson. “I am pleased that we were able to reach a consensus to provide tax relief to more homeowners and ensure that it keeps pace with inflation so more residents can afford to stay in their homes and age in place in our community.” 

"For years, I've heard from residents sharing their struggles with rising costs,” said Councilmember Sidney Katz.  “This bill helps address those challenges, offering a property tax credit for homeowners who’ve worked hard and deserve to stay in the communities they love. We're expanding tax credits to provide real, meaningful relief to our residents in need who are feeling the squeeze of today's economy." 

Residents can apply via the Maryland Department of Assessments and Taxation. More information on the HOTC can be found on the Montgomery County Department of Finance webpage. 

For more information, the Council staff report can be viewed on the Council website.