Council considers raising local homeowner tax-credit cap from $350,000 to $400,000

Anne Arundel County officials proposed on July 15 to increase the county supplement cap for the homeowner property tax credit from a maximum assessed value of $350,000 to $400,000, a change the administration said would expand eligibility for residents who meet state income and asset limits but whose home valuations increased over time. “...this will now jump up and allow you to still, meet the credit,” Budget Officer Chris Trumbauer said, summarizing the administration’s goal to preserve the credit for eligible low- and moderate-income households as assessed values have risen since 2006. Brian Shank from the Office of Finance explained that the program’s mechanics consider total ad valorem taxes and apply state and county homestead credits in the calculation; the state component remains capped at $300,000 by state law while the county’s proposed increase moves its component from $350,000 to $400,000. Staff noted state eligibility thresholds remain in state law: a maximum income cap of $60,000 and an assets cap of $200,000 for the state program. The county supplement change would not alter those state-set income/asset eligibility limits. Staff estimated the change would expand the universe of potentially eligible properties substantially (a cited 30% increase in potentially covered properties) and approximated an overall fiscal impact in the neighborhood of $500,000, though officials said the estimate depends on who applies and cannot be exact. Councilmembers asked about the applicant demographic (staff said many applicants are elderly) and about outreach; staff said the Department of Aging conducts outreach for potentially eligible residents and the county tax flyer mentions the program. No formal vote was taken at the work session.