Executive Kittleman Seeks Expansion of Senior Tax Credit and Creation of Aging-in-Place Tax Credit

From Howard County:

To help Howard County seniors and retired military age in place, County Executive Allan H. Kittleman today announced he will seek expansion of the Senior Tax Credit and the creation of additional tax credits for eligible homeowners. Kittleman said the reason to expand tax credits comes as the overall county population continues to age. In 2010, 10 percent of residents were 65 or older. By 2025, this will increase to 18 percent and by 2035, nearly 22 percent.

“We need to make sure our residents are given an opportunity to stay in their homes,” said Kittleman. “It’s absolutely critical we plan for this and have mechanisms in place to assist them.”

Providing additional services to the county’s senior population has been a priority since taking office, Kittleman said. He has elevated the county’s Office on Aging and Independence administrator to a cabinet-level position and has renamed all senior centers to 50+ Centers to accommodate the growing demand for services, including from aging Baby Boomers.

Currently, the Senior Tax Credit is granted to property owners who are at least 70 years old, use the property as their principal residence and live in a household with combined gross income not exceeding 500 percent of the federal poverty guidelines for a household of two, which is about $80,000 for Fiscal Year 2017. The household must have a net worth that does not exceed $500,000.

The proposed legislation would reduce eligibility to age 65, expanding the potential number of county property owners who could qualify based on age from 26,000 to more than 40,000. The second piece of legislation would create the Aging-in-Place Tax Credit, providing a 20 percent tax credit on up to $500,000 of assessed property value. This credit would be granted for up to five years.

The Maryland General Assembly passed state-wide enabling legislation for this additional tax credit through House Bill 898 during the 2016 Legislative Session. Local legislation must be passed for this tax credit to be available in Howard County. Kittleman said he wants seniors and retired military in Howard County to have full advantage of these options.

House Bill 898 enables this tax credit for owners of occupied property who are 65 or older and have lived on their property for at least 40 years. This credit also is available to retired members of the armed forces of the United States, who are at least 65 years of age. Kittleman has discussed this issue with Howard County State Senator Gail Bates and fully supports state legislation she plans to introduce to reduce the time homeowners must have lived on their properties from 40 years to 25. This change would expand the number of seniors eligible for this tax credit.

“This seems like a reasonable change, allowing many more seniors to take advantage of this,” said Bates. “It’s getting increasingly difficult for many older residents on fixed incomes to stay in Howard County. We have to do what we can to fix this problem.”

“These changes will make a tremendous difference for many older residents, allowing them to stay in their homes,” said Starr Sowers, Administrator of the Office on Aging and Independence. “Most seniors want to remain in the homes where they have lived for decades. But many are on fixed incomes and as their property taxes rise, they find they cannot afford it.”

Kittleman, who created an Office of Veterans and Military Families within the Department of Community Resources and Services, strongly advocates improved property tax credits for retired military personnel living in Howard County.

“We’re seeing more retired military, particularly from Ft. Meade and other area installations, choosing to stay in or relocate to Howard County,” said Kittleman. “Just as with our seniors, we are committed to having support services and tax credits in place to allow these residents to stay in the County if that’s their desire.”

“It’s encouraging to see the County Executive’s commitment to our veterans and military families,” said Lisa Terry, Administrator of the Office of Veterans and Military Families. “These initiatives make a real difference in their quality of life and make Howard County an attractive place for them to live.”

Kittleman’s tax credit bills will be prefiled with the County Council this Thursday. The Council will have a public hearing on the bills November 21 and vote on them on December 5.

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