Homestead Tax Credit Maryland *Please Read* Don't Panic

My sister got forwarded an e-mail from a panicky Realtor Team who told all of their clients that unless they filed an application NOW for the homestead tax credit, their taxes would go up substantially next assessment.

I wish Realtors would research things before panicking people. This is NOT THE CASE. The State of Maryland did not put this law into effect in a sneaky way so they could turn around and say, too bad, you didn't hear of this through a chain e-mail so we're going to penalize you. In fact, if you go to the website now to apply, you cannot do it on the internet without the code that they mail to you.

What is happening is you do need to file an application to get the homestead tax credit. In the past, everyone got the credit but the State of Maryland said if you are an investor, they are not going to cap the amount of property tax that you will pay. If you live in Anne Arundel County, you have enjoyed a 2% cap each year on the property taxes for your home, even if it went up in value 20%. This is a nice benefit to homeownership that people in some other states do not get.

If you purchased a new home in 2007, they will mail it to you. If you are among the 1/3 of Maryland residents that are getting their new assessments this year, your application will be included in with your assessment. If you are not getting assessed this year, when you do get assessed, your application will be in the mail with your new assessment. Maryland is not trying to hide this law from you, they will send the paperwork right to your house.

This is from the FAQ section on the website:

3. What government agency is sending out these applications?

The Department of Assessments and Taxation will include the application in the Assessment Notices mailed to one-third of the property owners on December 28, 2007. Homeowners whose properties are not in that one-third of the county being reassessed this year can wait until their properties are assessed in the next two years to submit an application. New purchasers of properties also will be mailed a homestead application by the Department.

If you would rather send it in now, you certainly may. You need to go to the Department of Assessments and Taxation, download the form, fill it out and mail it in. You can click on the blue link in the previous sentence to get to the website.

I hope this helps to clarify what is happening. If you have questions or concerns about local Real Estate, give Lisa Webber a call at 410-320-0242. We'd love to help you with all of your Real Estate Needs.

Dave & Lisa Webber, RE/MAX Vision, 1662 Village Green, Crofton, MD 21114, 410-451-1900, 410-320-0230, 410-320-0242, www.webberteam.com