Senior tax credit to relieve burden of rising assessments on seniors

Tuesday, April 11, 2006

by Katie Champion

Staff Writer

Carroll County officials expect a large number of seniors to take advantage of a new measure that will reduce property tax bills.

The Board of Carroll County Commissioners voted unanimously Tuesday morning to approve a senior tax credit to ease the burden of rising property assessments on seniors who live on a limited income.

‘‘We’ve had lots of requests for copies of the plan and everything we’ve heard has been very supportive,” said Commissioner Julia W. Gouge, adding that the board and staff have been working to pass this plan for two years.

The tax credit limits the amount of property taxes paid by seniors older than 65 whose annual income is less than $50,000.

The plan was drafted in response to concern over the impact of rapidly rising assessments on seniors with limited incomes.

The credit is a supplement to the State of Maryland’s Homeowners’ Property Tax Credit.

Carroll’s plan, according to Ted Zaleski, Carroll County director of Management and Budget, establishes a net worth of up to $500,000 excluding qualified retirement programs such as 401Ks and pension plans. The credit can be applied to the first $300,000 of a home’s value. This means that even if the home is worth more than $300,000, relief can be given. The state’s plan establishes net worth not more than $150,000 and includes assets such as 401Ks and IRAs, Zaleski said.

According to Carroll County Comptroller Rob Burk, residents may qualify for the state and not the county, the county and not the state or be eligible for both.

‘‘We’re beginning the process of notifying the state,” Burk said, adding that state employees may not be able to answer questions about Carroll’s credit plan for several weeks. ‘‘We’re working with the Bureau of Aging and the senior centers to set up public workshops to clarify some of the questions and help people through the educational process.”

The county plans to begin holding information sessions later this spring. The deadline to apply for the credit is Sept. 1. Burk said that several seniors have already applied for the credit and do not need to reapply now that it is final.

‘‘The timing of the application has an effect on whether they see a discount on the tax bill or receive a refund voucher from the state,” Burk said. ‘‘Regardless, they will see a credit.”

Burk said that seniors must go through the application process each year to verify their income.

In an effort to answer questions and provide assistance to seniors who wish to apply for the credit, Carroll County Government will be scheduling workshops this spring at local senior centers.

Read the full story in Thursday’s edition of The Gazette.