From Harford County government:
County Executive Barry Glassman proposed legislation Tuesday providing property tax relief for eligible seniors and retired veterans in Harford County beginning July 1, 2018 and remaining in effect for five years. The legislation calls for a 20% reduction in residential property taxes owed by citizens who are 65 and older and have lived in the same dwelling for 40 years, or are retired veterans 65 and older. The tax break, in the form of a tax credit, would apply only for homes with a maximum assessed value of $400,000. If approved by the County Council, the tax credit would save an average of $550 for eligible homeowners. The eligibility and term of the tax credit for seniors and retired veterans are required elements of enabling legislation signed by Maryland Gov. Larry Hogan in 2016.
The budgetary effect of the legislation would become revenue neutral by phasing out an existing discount on early tax payments available to all property tax payers. Those discounts have averaged $21 per property tax account, per year.
“By following our path to fiscal balance and responsibility, my administration has made local government more efficient and halted the growing debt burden on our next generation,” Harford County Executive Barry Glassman said. “This has allowed us to fund overdue salary increases for teachers, law enforcement and county employees in each of the last three years. With this new legislation, we are taking the same balanced approach with a revenue-neutral tax credit that provides relief for senior citizens who have been longtime Harford County residents, and for those who retired here and have defended our nation.”
The proposed legislation will be available online at http://www.harfordcountymd.gov/1548/Legislation.
How pandering. I mean convenient. Phase it in just before the election, phase it out at the end of the 2nd term. Looks like he learned his politics from Sam Drucker on Green Acres.
What is the purpose of this tax break other than an attempt to buy votes?
I’m neither, but I am trying to raise a load of kids in HarCo. I would vote against Glassman today, if I could.
Taxes are taxes. No need for special categories of owners.
Hey Berry, how about a 20% property tax credit for people that have lived in the Harford County for more than 20 years and a 10% tax credit for people who have lived in Harford County for more than 10 years.
So he is giving old people and veterans a tax break by raising taxes on everyone else?
“citizens who are 65 and older and have lived in the same dwelling for 40 years,”
So, 8 people? Good thing no strings are attached.
Bet 1 of those 8 is connected with someone pushing the handout.
I imagine 2 of those 8 are Slutzky and MacMahon.
Amazed and disappointed that anyone would not see the positives of such an effort regardless of the political motivations. The fact is Harford County is populated a varying group of seniors/veterans that have chosen to make this area their home. Many of them came here through the pre Viet Nam and massive steel industry eras and have since stayed in the homes that they settled in years ago. Although yes the County and these neighborhoods have grown and changed these amazing citizens have stood the test of time and will continue into the years and decades of the future. If anything I think we all should thank them for laying the foundation of which we have built the current Harford County upon and what better way than to put a little money back into the homes of those that have already paid so much.
So give them a little bit of money by taking more money from me and everyone else?
I seem to recall 8 years ago many had a problem paying $20 extra a year in property tax to fund schools, talking about constant yield. Now we ignore the constant yield and charge 90% $20 more to give %10 a $500 break!
It’s refreshing to see someone admit this is just a give away of other peoples money to a select group for no economic reason. I mean it’s one thing to give a tax break to select homeowners if they improve their home using a harford county company or if the volunteer their time to a worthy cause or a million other reasons but to just take money from some and hand it over to others because they can is a special kind of stupid unless of course you are on the receiving end.
Here’s an idea how about we hire more county employees while we keep the existing ones at thier current pay and reduce their work week to 32 hours because they are great people. It’s like it’s free money
To be fair, many of these folks have massive real estate gains over those 40 years. Can you imagine what 40 acres just outside of the old Bel Air would be worth today?
Maybe they should pay more!
When all costs are factored in I doubt “many” have realized “massive real estate gains”. Additionally, not everyone bought homes near Bel Air.
How about a tax break on car leases for seniors? Marylanders get hosed the way the tax is set up.
Precisely, this is nothing but the extension of the processes that allow the rich to get richer, while screwing the struggling tax payers that can’t make ends meat. The idea that this is payback to those that have served is moot. The idea that this is payback to those who have already paid in is moot. This is nothing more than giving to those who already have and the hell to the rest. If you really want to give your citizens relief, then give every citizen the tax break that you extend to those who really don’t need the assistance and then give a voucher to aid those who are in apartments so they can save to afford a purchase of a home instead of renting from those more fortunate and the greedy corporations.
Giving to those who already have? You have to be kidding. My parents (in another state) paid $30K for their house in the 1960’s and now someone says it was worth $400K. Does that make them rich? Not even close. They live on a fixed income, making far less than many of these young “20/30 somethings,” and just like everyone else, their taxes, utilities, etc., etc., continue to rise. Giving them a few bucks off on their taxes so they can continue to live in their long time home is a good thing for the community at large.
What a truly interesting sob story. Let’s see, they have a house worth nearly half a million dollars and you want them to get a tax break? Good grief! Sell the house and move if they can’t afford the tax…. Not only sell the house, give the proceeds to their children in increments so the inheritance tax doesn’t kick in. Inheritance tax is nothing but a double tax because the parents have already paid tax on the money in the first place. The use of double taxation must cease to exist….
I do want them to get a tax break. Older folks shouldn’t be forced to move out of their long time homes because the cost of living has increased far beyond their means. Let all these young 6 figure earners who can afford to spend big money on gigantic SUVs and pickups, large screen TV’s, smart phones, travelling sports teams, etc., etc., pay a bit more. They’re the ones who can obviously afford it – not the senior citizens struggling to get by on a fixed income.
PS
$400K is not half a million dollars.
“Not only sell the house, give the proceeds to their children in increments so the inheritance tax doesn’t kick in.”
In most states, inheritance taxes do not apply to children. Estate taxes might, but many states do not have an estate tax, and the Federal Estate tax kicks in somewhere around $5 or $6 million. So this comment usually doesn’t apply to the average middle class senior citizen.
It’s called inflation.
Harford Resident it isn’t the young people paying the extra tax. It’s the middle age folks. Again people should pay thier own taxes!
@Harford Resident – We are talking about this here legislation in the wonderful world of Maryland. Maryland has both inheritance tax and estate tax. My comments are applicable to exactly what we are talking about.
Mr. Mooch wants free money to move out of his mom’s basement but the poor elderly couple who has worked all their lives should take it in the pooper so he can get more freebies. If you paid your bills, established good credit, and held a job, you wouldn’t need to rent an apartment.
Long since moved out of their basement (saved a ton of money while I was there though) and have owned a few houses of my own in the interim, but thanks for the advice. With regards to good credit, I haven’t ever paid even one penny of credit card interest in my entire life. “Cash is king” baby!!
Harford Resident, I believe he’s talking to me. Anyway, the only thing I get for free is Health Care. Everything else is paid by my poor mother because I am too incompetent to take care of myself. Yet alone because of my untrustworthiness, I can never be employed. I do own a home, but my go getter sister lives in it and runs a Day Care out of it. Someone as untrustworthy as I, could never accomplish such a thing. She gets the majority of her money from the State’s voucher system regarding the child care. Don’t you just love the system!
If their “massive real estate gains” make the assessed value of their home more than $400,000, they don’t qualify. I just don’t see this as another way for the aging Harford County Land Barons to tighten their grip on the wealth of today’s youth…but I guess time will tell.
Yes gains which they will realize eventually. They should pay thier tax not the rest of us pay it for them!
I’m fairly certain that it’s not “revenue neutral” and that the county stands to make a fair amount of money on this deal. There just aren’t enough people to meet the tax break criteria.
Only a true harford county republican can describe giving away tax dollars as making money.
They’re doing away with the early tax pay discount which, most likely, was taken advantage of by tens of thousands of “property” owners and attempting to replace it with a program that can be utilized by significantly less qualified “home” owners. Once the program expires they probably won’t reintroduce the former discount. In effect, the county makes money.
Only a true idiot looks at a tax break for anyone as needing to pay for it. Taxation, in any form, is the confiscation of wealth. If you spend too much of the productive citizenry’s money to pay for crap, then you simply confiscate more. Does anyone ever think of spending less?
That’s why I like the constant yield. What ever happened to that?
This legislation is too narrow. For example, if a senior that lived 40 years in Harford County sold and bought a new house recently, the senior is not eligible for the tax break. Yet this senior is also contributing to Harford County just like a 40 year owner of a house.
Also, the tax break will only benefit a small group of veterans. A homeowner has to be a military retiree or collect a VA pension to qualify. Why is the legislation so narrow? A disabled veteran of a war who is not a retiree or collecting a VA pension would not qualify. In some other states, all veterans qualify for a tax break if they served during a time of war.
Also the legislation will expire.
A friend of mine’s father is a 100% disabled Korean war vet living in NJ. As a result of his % disability, he has paid zero property taxes for many years. I have no problem with that.
Yes, my point exactly. So if this 100% disabled veteran lived in Harford County instead, he would only qualify for the tax break if he owned the same house for over 40 years, or if he was collecting military retirement income or a VA pension. It’s also not clear to me whether a veteran with a VA pension would qualify, or if it’s meant to apply only to military retirees with 20 or more years of service. There are plenty of disabled veterans and other veterans that would not be eligible for the tax break under the legislation.
Coincidentally, my friend’s father (and mother) have owned and lived in their home for 50+ years. But as you suggest, ownership longevity isn’t the deciding factor, but rather, the 100% disability designation.
Exactly. the legislation was only written to appease a squeaky wheel councilman. It was constructed cynically, assumedly by the know-it-all finance guy. It serves practically no one, and takes away the early pay discount. These people are becoming less and less connected to the people they serve (unless of course one owns a farm).
Well, it’s not like the Office of Economic Development has done ANYTHING to increase the tax base or employment rolls in the past 3 years. Embarrassing.
We are an 80 year old couple and have lived in Harford County for 55 years, The first house for 35 years, and our second house 20 years. so we don’t qualify for the “BIG” tax credit because we have not lived in this house 40 years. We do however, pay our taxes early to benefit from the discount.
It seems like a strange law, and appears to have been written to benefit someone specificly.
I agree. Our population is living longer but not necessarily better. As we age we are more likely to develop chronic illness. Presently people are living longer with chronic illness, that just 10 years ago would have shortened their lives. More people as they age tend to downsize. Some move to a smaller home or condo.
When I initially read about this proposed legislation, it left me scratching my head because it makes no sense. It doesn’t fit the current scenario of many of our seniors.