Change in Maryland Homestead Property Tax Credit

There has been a major change to the Maryland state property tax system you need to know about.  In order to continue to receive the Homestead Tax Credit which has capped the property tax increase when your home's assessed value increases, you must now apply to receive this credit.

You may not even have known about this automatic credit, but now the state is requiring that all homeowners file an application for their principal residence in order to receive it.  This is an effort to prevent fraud.  You should let your friends and relatives know about this, especially the elderly, to make sure they don't miss it.

Assessments of value have greatly increased this year based on past market activity, so your property tax bill is sure to go up.  As long as you apply for your principal residence, you will at least minimize the 'damage'. 

A third of Maryland homeowners received their new tax assessment in December, and it has instructions on it.  Homeowners have until 2012 to make this application.  You can put in your application now, or just wait until you get your new bill.  Print the application from http://www.dat.state.md.us/sdatweb/Homestead_app.htm or you can also visit my website at www.bobmyers4homes.com to reach a link to get these documents.

If you buy a home this year you have 180 days to file an application, but it will not go into effect for a year.  There are new disclosure rules for sellers starting in April so that home buyers are not surprised by the large increase.