Bill Information: House Bill 1081 would ensure that property owners who have elected to take the Homestead Property Tax, and have later been found ineligible, would not only owe the back taxes — there would also be a financial penalty for claiming a tax credit they’re not entitled to.
Why This Is Important: Municipalities can ill afford to allow residents to claim tax credits they’re not entitled to — the loss of tax revenue is too great. Baltimore City loses roughly $1 million annually due to owners of rental, secondary, or vacant property taking the Homestead Property Tax Credit fraudulently…or “by accident”. This would not only ensure the municipality would have legal recourse to claim the back taxes, but the added penalty would serve as a deterrent against further abuse by property owners.
What You Should Do: Contact your Maryland legislators and ask them to support this important bill.