Maryland's Homestead Tax Credit process revamped

ANNAPOLIS, Jan. 17, 2008 -- The process determining homeowners' eligibility for Maryland's Homestead Tax Credit has changed, with homeowners now required to submit a one-time application.

MACPA State Tax Committee Chair Beverly Richard, who serves as tax manager at SC&H Tax and Advisory Services, LLC, offers this explanation:

"The state of Maryland rolls out reassessment notices for real property in December / January. One-third of all properties are reassessed annually. The Homestead Tax Credit has previously been an automatic credit that 'capped' assessment increases to a set percentage for state and county purposes.

"Beginning this year, property owners will have to 'apply' for this credit -- it will no longer be automatic. This credit is only available on the principal residence, and (the state Department of Assessments and Taxation) is finding that many property owners are claiming multiple properties as their principal residence to take advantage of the program. Included in the assessment notice, property owners should receive instructions to register online or complete a form in order to receive the tax credit. Property owners will have to include their Social Security number, as this will be the identifier to track any duplication.

"If the property owner misses filing this registration / application, they will receive a property tax bill later in the year for the full assessed value."

The state Department of Assessments and Taxation offers this explanation on its Web site:

"Property owners who use the property as their principal residence will receive an assessment notice containing a Homestead Tax Credit Application for the first time this year beginning Jan. 1, 2008. This one-time application must be submitted in order to insure that the credit is granted only on eligible properties and not on properties that are rented or used as vacation homes. The applications can be filed online here on the Department’s Web site or by mailing the paper form in the postage-paid envelope included in the assessment notice. Homeowners not reassessed until 2009 or 2010 can wait until then to submit a Homestead Tax Credit application."

Get complete details on the SDAT Web site.

This content has not yet been Rated.

To Rate content, please Login.