You could lose your Homestead Tax Credit

The Homestead Tax Credits are provided by both the State and County to limit the annual increase in taxable assessment on owner-occupied residential property. County Assessment increases are limited to 5% per year and State Assessment increases are limited to 10% per year.

What is this new application process?

As of January 1, 2008, the State will be implementing a new APPLICATION PROCESS for these credits. The implementation will be over a period extending to December 31, 2012. You will not have to apply for this credit every year.

When do I have to apply?

If your property is scheduled for reassessment in January 2008, your assessment packet will include an application for the Homestead Tax Credit. In order to continue to receive this credit, your application must be returned to the State by April 1, 2008.

If your property is scheduled for reassessment in January 2009, your assessment packet will include an application for the Homestead Tax Credit. In order to continue to receive this credit, your application must be returned to the State by April 1, 2009.

If your property is scheduled for reassessment in January 2010, your assessment packet will include an application for the Homestead Tax Credit. In order to continue to receive this credit, your application must be returned to the State by April 1, 2010.

If you purchase a new home in Howard County, the application will be mailed to you within six months of your purchase.

How do I apply?

There are a number of ways to apply.

• Complete the application found in your assessment package and return it in the postage paid envelope provided to Department of Assessments and Taxation, 301 W. Preston St., 8th Floor, Baltimore, MD 21201.
  
  
• Complete the application found on the State's website at www.dat.state.md.us, using the Access Code provided in your assessment package and submit it online.
  
  
• Complete the application found on the State's website at www.dat.state.md.us, print it, and mail to Department of Assessments and Taxation, 301 W. Preston St., 8th Floor, Baltimore, MD 21201.
  
  
• Download a blank application found on the State's website at www.dat.state.md.us, print it, complete it by hand, and mail to Department of Assessments and Taxation, 301 W. Preston St., 8th Floor, Baltimore, MD 21201.
  
  
• Call SDAT at 410-767-2165 or 1-866-650-8783 if you need to have an application mailed to you.

What happens if I don't apply?

If you don't apply, you will lose your Homestead Tax Credit. In Howard County, for FY08 the average County Homestead Credit was over $1,100.00. If you lose your Homestead Credit because you fail to apply in a timely manner, your credit will not be granted retroactively, although you will be able to get the credit in the future once the application is complete.

I have questions, who do I call?

The State of Maryland has set up a hotline at 410-767-2165 or 1-866-650-8783. Even though Howard County is funding these credits, the State Department of Assessments and Taxation is responsible for identifying those properties eligible for these credits. All questions regarding the application process should be directed to them.