[Adopted 5-2-2006 by Ord. No. 2006-01]
As used in this article, the following terms shall have the
meanings indicated:
The combined gross income from all sources of all individuals
who actually reside in a dwelling except an individual who is a dependent
of the homeowner under § 152 of the Internal Revenue Code
or pays a reasonable amount for rent or room and board.
A house that is used as the principal residence of a homeowner
and the lot or curtilage upon which the house is erected, as determined
for tax purposes by the Supervisor of Assessments or his designee,
and which is occupied by not more than two families; and is actually
occupied or expected to be occupied by the homeowner for more than
six months of a twelve-month period that includes July 1 of the taxable
year for which the deferral under this article is sought.
An individual who, on July 1 of the taxable year for which
the deferral is sought, actually resides in a dwelling in which the
individual has a legal interest; or under a court order or separation
agreement permits a spouse, a former spouse, or a child of the individual's
family to reside without payment of rent in a dwelling in which the
individual has a legal interest.
A homeowner who meets the requirements of this article may defer
payment of County property taxes in accordance with this article.
To be eligible for a deferral under this article, a homeowner
must meet the requirements of this section:
A.
The homeowner must live in a dwelling where the combined income does
not exceed $60,000 a year.
B.
The homeowner must be at least 65 years old or permanently and totally
disabled. An individual is considered to be permanently and totally
disabled if found to be by the County Health Officer or if so qualified
under the Social Security Act, the Railroad Retirement Act, or a federal
act for members of the Armed Forces of the United States, or a federal
retirement system.
Interest shall accrue on the deferred taxes at a rate of 0%
per annum.
The accumulation of deferred taxes and accrued interest may
not exceed 50% of assessed value of the property.
A penalty may not be charged on the portion of taxes deferred
under this article.
Until extinguished by operation of law or paid, real property
taxes deferred and interest accrued are:
The total amount of real property taxes deferred and interest
accrued are due and payable when:
A.
The homeowner ceases to own the property;
B.
The homeowner ceases to occupy the property as his or her principal
place of residence;
C.
The property becomes subject to a tax sale; or
D.
The homeowner fails to submit a timely application for deferral.
An application for deferral must be submitted each year a deferral
is sought.
In accordance with the requirements of Cecil County, a homeowner
shall file an application for deferral no later than September 1,
selecting deferral for the current tax year, on the form that the
Director of Finance provides. The Director of Finance shall design
the application form to collect the information needed to evaluate
an applicant's eligibility and may require the applicant to verify
the application under oath. After receiving the application, the Director
of Finance shall notify the applicant whether the application has
been approved or disapproved. If the application is approved, the
applicant and the Director of Finance shall execute a written agreement
of deferral that provides for repayment and includes a notice of lien.
After executing the agreement, the Director of Finance shall notify
the mortgagees or beneficiaries under a deed of trust that are listed
in the application. The agreement shall be recorded in the land records
of the County at the homeowner's expense.
A homeowner may end a deferral at any time by giving written
notice to the Director of Finance and paying the deferred taxes and
accrued interest.
Each year, the Director of Finance shall submit a report to
the County that includes:
A person who knowingly provides false or fraudulent information
on a document required under this article is guilty of a misdemeanor
and, on conviction, is subject to imprisonment not exceeding five
months or a fine not exceeding $500.
