Overview
Municipalities are able to offer real estate and earned income tax credits to active members of volunteer fire companies and nonprofit emergency medical service agencies. Each local government can choose whether to offer the earned income tax credit, the real estate tax credit, or both.
Ordinance/Resolution Adoption Process
At least 30 days prior to adoption of a tax credit ordinance, the local government must place a legal advertisement of its intent to adopt the ordinance or resolution implementing the tax credit, then must conduct at least one public hearing on the issue.
Once adopted, the ordinance or resolution needs to be sent to the Office of the State Fire Commissioner, as well as the county law library and the tax officer for the local government’s tax collection district (if adopting an earned income tax credit).
Before adopting any such ordinance or resolution, the local government should consult with its solicitor to ensure that it is following all rules applicable to passing tax related legislation. These vary for different types of local government.
Volunteers: Get Your Credits
An active volunteer who wants to take advantage of a credit offered by their local government must sign and submit an application for certification to their chief or supervisor.
They'll sign it and attest that the active volunteer meets the qualifications of the program or can no longer serve due to injury.
The application is then forwarded to the local government for review.
Real Estate Tax Credit
The real estate tax credit may establish a credit of up to 100% of the real estate tax liability for residential real property owned and occupied by an active volunteer.
How It Works
An active volunteer pays their municipal real estate tax bill, then files an application for the real estate tax credit with their local government.
If the application is approved, the local government issues a check to the active volunteer as a real estate tax credit rebate.
The local government must approve the application if the real estate in question is real property owned and occupied by the applicant, and verify that the applicant meets the active volunteer certification requirements implemented by the local government.
Earned Income Tax Credit
Only residents of the local government who are active volunteers can apply for the tax credit. Active volunteers in counties that participate should apply when filing their earned income taxes for the year.
Local governments must provide an option for volunteers filing jointly to still claim their credit.