Special offer

Qualified Gaithersburg Residents Urged to File for Homeowners Property Tax Credit

By
Industry Observer with Retired

Qualified Gaithersburg Residents Urged to File for Homeowners Property Tax Credit 

On June 7, 2010 the Gaithersburg Mayor and City Council adopted the FY 2011 budget, which includes a 5 cent increase in the City's real property tax rate.  The budget took effect July 1, 2010.  While the tax increase was considered necessary to ensure the continued delivery of services to City residents, Gaithersburg's elected officials acknowledged that it may present financial challenges to some homeowners.  To help, the City of Gaithersburg offers property tax credits to qualified households. 

The City's program piggybacks on the Homeowners Property Tax Credit Program offered by the State of Maryland, which credits a homeowner's property tax bill if the property taxes exceed a fixed percentage of the household income.  Residents of Gaithersburg who qualify for this Maryland property tax credit are also eligible to receive an additional City property tax credit.  The Gaithersburg program allows for a 50% supplement of the State credit. 

Qualification guidelines are set by the State of Maryland.  A homeowner may be eligible for a property tax credit if:

  • Annual household income does not exceed $60,000;
  • The homeowner owns or has legal interest in the property;
  • The homeowner has lived in the home for at least six months or will live in the home for the next six to twelve months;
  • The combined net worth of everyone in the household does not exceed $200,000 (not including the value of the principal residence or the cash value of any qualified retirement savings or individual retirement accounts).

Note that only the first $300,000 of the home's assessed value counts towards the property tax credit.  The total amount of the tax credit cannot exceed the amount of property tax owed.

Application for this credit must be filed with the State of Maryland annually, so even if a homeowner has applied for a credit in previous years, it must be done again.  The deadline to apply is September 1, 2010. 

To apply for the credit, call the Maryland State Department of Assessments and Taxation (SDAT) at 1-800-944-7403 or download the form and instructions from the agency's website at www.dat.state.md.us/sdatweb/htc.html.  Questions may also be directed to the City of Gaithersburg Department of Finance and Administration at 301-258-6320.

Posted on ActiveRain as a community service.

Posted by

Roy Kelley, Retired, Former Associate Broker, RE/MAX Realty Group

Gaithersburg, Maryland  

Comments (1)

Roy Kelley
Retired - Gaithersburg, MD

It is sometimes a good idea to revisit old blogs and reblogs. We might even find some good ideas for new posts.

Jul 19, 2018 01:35 PM