Submitted by: Sean Corcoran
Submitting Department: City Clerk
Agenda Section: Discussion
Item Title:
title
FY22 Budget Initiative: Hyattsville Property Tax Credit Review and Assessment
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Suggested Action:
recommendation
FOR DISCUSSION:
I move that the Mayor and Council authorize expenditures of up to $10,000.00 in the Fiscal Year 2022 (FY22) budget to provide for necessary legal review and technical support to formulate recommendations for revisions to existing Municipal Property Tax Credits, including revisions to Municipal tax credit programs authorized under Maryland Code, Tax-Property ? 9-104 ("Homeowner's Property Tax Credit") and Maryland Code, Tax-Property ? 9-105 ("Homestead Tax Credit").
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Summary Background:
In 2008, the Hyattsville City Council passed Ordinance 2008-07, which established the "Local Supplement to the State Homeowner's Property Tax Credit". This local tax credit, intended for low- and fixed- income homeowners, created a local tax credit valued at 15% of the State Homeowner's Property Tax Credit for principal residences that have a maximum of $350,000 in assessed value, if the household income is less than $80,000 and the net worth of the household, excluding the principal residence, is less than $200,000. In addition, this ordinance set the local Homestead Tax Credit percentage at 110%.
Housing affordability continues to be a hardship for many Hyattsville residents. While Ordinance 2008-07 was intended to reduce the property tax burden for low- and fixed-income homeowners, it is unclear how effective it has been. This proposed review will include revisiting Ordinance 2008-07 and providing necessary background and making recommendations regarding:
? How many Hyattsville residents currently receive the local Homeowner's Property Tax Credit? How many Hyattsville residents are eligible for the benefit but fail to apply?
? Are the appraised value, income, and net worth requirements of the local Homeowner's Property Tax Credit s...
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