Maryland Legislators Violate Intent of the Law to save Pete Stark

Maryland Legislators Violate Intent of the Law to save Pete Stark
Al Ritter

In 2010 Maryland lawmakers decided to amend the requirements for the “Homestead Tax Credit,” but not entirely, only for a select few people.

Do you remember the big issue of Congressman Pete Stark of California who claimed a homestead tax credit on his home in Harwood, MD in 2009? Pete had claimed his yearly homestead tax credit of $3700 despite the fact that he claimed the California home as his principal residence. The requirements for the homestead tax credit at that time said that the home owner must have only one residence, and if married that you may have only one primary residence. Pay close attention to time frames here because they are important. This came to light in the media on March 19, 2009. With the State of Maryland Property Tax Division breathing down Pete Stark’s back, a private deal was being struck by legislators in MD.

On January 22 Delegates Pendergrass, Carr, Conaway, Costa, DeBoy, Guzzone, McDonough, Mizeur, Montgomery, Robinson, Smigiel, Sophocleus, Sossi, F. Turner, and Walkup penned a bill entitled “Homestead Property Tax Credit - Eligibility of Employees of the Federal Government Stationed Outside the State.”
The synopsis of this bill is as follows: Providing that under specified circumstances a homeowner who is an employee of the federal government stationed outside the State may qualify for the homestead property tax credit for a dwelling even though the homeowner does not live in the dwelling for the required period of time.

For no other reason than cronyism the Maryland legislature passed this bill into law on March 31, 2010 to insulate Pete Stark, all other US legislators and for that matter ANY federal government employee from the taxes that anyone else has to pay when owning a second home outside the state.

How much do they save by claiming the homestead tax credit, well Pete Stark saves $3700 yearly, multiple that by a possible 535 legislators in Washington, plus ANY federal employee and just take a wild guess how much Maryland is losing in taxes to save face for Pete Stark. This law was originally used to keep Marylanders in Maryland.

Originally you had to promise to stay in Maryland in that residence for 5 years………now what does it mean?.............NOTHING! Be sure to thank your Maryland Legislators that passed this bill!