Is Your Maryland Home Registered for the Homestead Tax Credit?
The Maryland State Department of Assessments offers a tax credit to homeowners who are primary residents in their homes. The homestead credit verification form *was* mailed with property assessment notices in 2008, 2009, and 2010. The Maryland State Department of Assessments and Taxation sent the form again in 2011 and 2012 to those who did not complete the form in 2008, 2009, or 2010.
Those who do not complete the form, either online or on paper, by December 31, 2012 will have the principal residence status of their property changed to "no". When the principal residence status is set to "no", neither the homestead credit nor the county "offset credit" (which I will explain momentarily) will be applied, beginning with the July 2013 property tax bill.
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Homeowners are reminded that they only have until December 31, 2012 to submit a Homestead Application to continue being eligible for this credit. You can find out if you have already filed an application by looking up your property on the Department's Real Property database and looking at the new information on filing status at the bottom of the page.
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The homestead credit is applied only in years when the assessed value of your property goes up at least 10% and its applicability is determined by state law, so the county can't mess with it. (Actually, it's a bit more complex than that, but this explanation should suffice.)
The offset credit is issued at the option of the county council, with the exact amount determined by the county council, subject to a maximum limit that is determined by state law. For the past several years, the offset credit has been set at $692. Every principal residence (and ONLY principal residences) receives the offset credit, no matter how long the owners have lived there and without regard for the value of the property or the amount that the property has changed in value. Montgomery County is the only jurisdiction in the state that issues the offset credit.
Finally, if you purchased a home during 2011 or 2012, you MUST complete a "new" homestead credit verification form (either online or by mail) in order to continue being eligible for the homestead credit and the offset credit. The title company that handled your settlement almost certainly did not complete the form for you.
You can check to see if the homestead credit verification form for your property has been completed by looking at your property assessment record online
The very bottom of the online assessment record shows your homestead verification form status.
If you determine that you have not applied for the Homestead Tax Credit, you may submit your application online here before Dec. 31, 2012.
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