Why Your Property Tax Assessment Matters

If you find your mortgage payment has gone up, the likely culprit is your real estate tax. The State of Maryland conducts an assessment of your property every 3 years to assign a value to your home for taxation purposes. An assessment isn't the same as an appraisal, and the assessed value of your home isn't necessarily what you could sell it for today.

Although the assessment letters go out in January, the tax rate is determined in June or July for the coming fiscal year (July 1, 2010 through June 30, 2011) and taxes are paid at the end of December and in July or August. Your monthly mortgage includes 1/12th of your tax so that your lender/loan servicer can pay the taxes for you when they are due. So, if the taxes go up - so does your monthly mortgage payment.

If you purchased your home between January 1st and July 1st, you will have 60 days to appeal the current assessment on your new home. If you decide to appeal, it's a good idea to speak with your real estate agent to gather the necessary data and research to support your position.

Another reason to be aware of your assessment is that it can effect your chances of resale if it's set too high. Many buyers will walk away from or be unable to afford the payment on a home with high taxes.