Make sure you take advantage of important state and local tax credit programs

Homestead Property Tax Credit

To help homeowners deal with large assessment increases on their principal residence, state law has established the Homestead Property Tax Credit. The Homestead Credit limits the increase in taxable assessments each year to a fixed percentage. Every county and municipality in Maryland is required to limit taxable assessment increases to 10% or less each year. Check the status of your Homestead eligibility by looking up your property on the Real Property database: http://sdat.dat.maryland.gov/RealProperty/Pages/default.aspx

Homeowners’ Property Tax Credit Program

For homeowners with a combined gross household income of $60,000 or less, this program allows credits against the homeowners’ property tax bill, but the taxes must exceed a fixed percentage of a person’s gross income. It sets a limit on the amount of property taxes a homeowner must pay, based on income. Income is defined as the gross income before any deductions are taken. Nontaxable retirement benefits such as Social Security and Railroad Retirement must be reported as income. You must apply every year no later than September on a standard application supplied by the Department of Assessments and Taxation. Example: If your combined household income is $16,000, your tax limit is $420. You would be entitled to receive a credit for any taxes above the $420. If your actual property tax bill is $990, you would receive a tax credit in the amount of $570, the difference between the actual tax bill and the tax limit.
Apply here: http://dat.maryland.gov/realproperty/Pages/Homeowners’-Property-Tax-Credit-Program.aspx

Use the Assessment Appeals Process

Everyone’s property is re-assessed every three years, but sometimes your assessment does not really reflect your actual market value based on home sales in your area.  The assessment appeal process allows property owners the opportunity to dispute the value determined by the State Department of Assessments and Taxation (SDAT). Property values rise and fall to reflect the market. Customers should file an appeal when the estimated value of their property does not accurately reflect what they believe to be its current market value.

To Appeal Your Assessment, Go Here: http://www.dat.maryland.gov/realproperty/Pages/Assessment-Appeal-Process.aspx
MD Property Owners’ Bill of Rights: http://dat.maryland.gov/realproperty/Pages/Bill-of-Rights.aspx

 

Maryland Renters’ Tax Credit Program

The State of Maryland Renters’ Tax Credit Program provides Property Tax credits for renters who are age 60 and older or 100% disabled, and also meet certain income requirements. Under HB-340, passed by the Maryland General Assembly in the 2016 Legislative Session, renters can receive maximum tax relief up to $1,000. This legislation also expands the statewide Renters Tax Credit program and increases the pool of eligible applicants. To get a credit for 2017, you must file by September 1st of 2018.  Contact the Maryland Department of Assessments and Taxation at 1-800-944-7403 or visit: http://dat.maryland.gov/realproperty/Pages/Renters’-Tax-Credits.aspx