This is important for every single homeowner in Maryland to remember to do. You need to request the application form by November 30. The Homestead Tax Credit was enacted in 2007 and requires every homeowner in the state to file in order to get their homestead tax credit for their personal residence. This is more of a cap than a credit. What it means is your property taxes will be capped and will not go up past a predetermined percentage by county.
It does not limit the assessed market value of the property but it's a credit calculated by any assessment increase exceeding 10% (or less depending upon your location) in one year.
So let's say your home is currently assessed at $300,000 and next year the assessment is $360,000, that is an increase of 20%. If this is your primary residence, the Homestead Tax Credit would be in effect and you would only pay taxes on no more than $330,000, not the $360,000. In Anne Arundel County, the tax cap is 2%.
It used to be everyone automatically got this credit but the reason Maryland enacted this change was so that investors wouldn't be benefiting from the deduction and would pay the full amount of any assessment or value increase.
You must file by December 31, 2012 or you will no longer get this tax cap and you'll be paying taxes on the full assessed value.
You only need to do this one time, so if you've done it any time in the past 5 years, you don't need to do it again. To find out if you are getting the credit, click here: Homestead Tax Credit
Enter your address and you'll see your tax record. Scroll down to the bottom and you'll see "Homestead Application Information" and underneath will either say No Application or will say Approved and the date that you submitted the application.
If it says No Application, then you must email your property address, County that it is located in and a return email address to hcredit@dat.state.md.us
For questions, call 410-767-2165 or email them at homestead@dat.state.md.us
Comments(0)