Washington County - Property Tax Credit for Disabled Veterans - Eligibility

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
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SENATE BILL 500
Q2 6lr1783
CF 6lr1782
By: Washington County Senators
Introduced and read first time: February 2, 2026
Assigned to: Budget and Taxation

A BILL ENTITLED

AN ACT concerning 1

Washington County – Property Tax Credit for Disabled Veterans – Eligibility 2

FOR the purpose of expanding eligibility for a certain property tax credit in Washington 3
County for certain disabled veterans to include cer tain members of the National 4
Oceanic and Atmospheric Administration and the Public Health Service; and 5
generally relating to a property tax credit for disabled veterans in Washington 6
County. 7

BY repealing and reenacting, with amendments, 8
Article – Tax – Property 9
Section 9–323(g) 10
Annotated Code of Maryland 11
(2019 Replacement Volume and 2025 Supplement) 12

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14

Article – Tax – Property 15

9–323. 16

(g) (1) (i) In this subsection the following words have the meanings 17
indicated. 18

(ii) 1. “Disabled veteran” means an individual who: 19

A. is honorably discharged or released under honorable 20
circumstances from [active military, naval, or air service] THE UNIFORMED SERVICES as 21
defined in [38 U.S.C. § 101] 10 U.S.C. § 101; and 22

2 SENATE BILL 500

B. has been declared by the U.S. Department of Veterans 1
Affairs to have a permanent service –connected disability that results from blindness or 2
other disabling cause that: 3

I. is reasonably certain to continue for the life of the veteran; 4
and 5

II. was not caused or incurred by misconduct of the veteran. 6

2. “Disabled veteran” includes an individual who qualifies 7
posthumously for a service–connected disability. 8

(iii) “Dwelling house”: 9

1. means real property that is: 10

A. the legal residence of a disabled veteran or a surviving 11
spouse; and 12

B. occupied by not more than two families; and 13

2. includes the lot or curtilage and structures necessary to 14
use the real property as a residence. 15

(iv) “Surviving spouse” means an individual who has not remarried 16
and who is the surviving spouse of a disabled veteran. 17

(2) The governing body of Washington County may grant, by law, a 18
property tax credit under this subsection against the county property tax imposed on a 19
dwelling house if: 20

(i) the dwelling house is owned by: 21

1. a disabled veteran; or 22

2. a surviving spouse of a disabled veteran, if: 23

A. the dwelling house was owned by the disabled vet eran at 24
the time of the disabled veteran’s death; and 25

B. the surviving spouse meets the requirements of paragraph 26
(4) of this subsection; and 27

(ii) the application requirements of paragraph (5) of this subsection 28
are met. 29

SENATE BILL 500 3

(3) The property tax cr edit granted under this subsection shall equal a 1
percentage of the amount of property tax imposed on the dwelling house that is equal to 2
the percentage of the disabled veteran’s service–connected disability rating. 3

(4) After a disabled veteran dies, the surviving spouse of the disabled 4
veteran may receive a disabled veteran’s property tax credit for the dwelling house that 5
was formerly owned by the disabled veteran if: 6

(i) the dwelling house received a property tax credit under this 7
subsection; and 8

(ii) the surviving spouse owns and resides in the dwelling house. 9

(5) (i) A disabled veteran or a surviving spouse of a disabled veteran 10
shall apply for the property tax credit under this subsection by providing to the county: 11

1. a copy of the disabled veteran’s discharge certificate from 12
active military, naval, or air service; and 13

2. on the form provided by the county, a certification of the 14
disabled veteran’s disability from the U.S. Department of Veterans Affairs. 15

(ii) The disabled ve teran’s certificate of disability may not be 16
inspected by individuals other than: 17

1. the disabled veteran; or 18

2. appropriate employees of the county. 19

(6) The governing body of Washington County may provide, by law, for: 20

(i) the duration of the tax credit; 21

(ii) regulations and procedures for the application and uniform 22
processing of requests for the tax credit; and 23

(iii) any other provision necessary to carry out the tax credit under 24
this subsection. 25

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 26
1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026. 27