Sunday, January 6, 2008

Homestead Tax Credit

I might post some more about property taxes this week if I have time, but the below paragraph in this article caught my attention, and if you pay Howard County property taxes, it should be of interest to you as well:

There is a new twist this year because of a change in Maryland law in 2007 that requires taxpayers to apply for the Homestead Tax Credit Program, better known as the assessment caps that keep most homeowners' tax bills from rising to the full value of their home's retail worth.

I recall getting my new property tax assessment in the mail, and other than cursing at the increase in assessed value, I basically threw it in my “tax stuff drawer”. Lesson learned: look at this stuff much closer. The Homestead Tax Credit application was in the envelope. It will save you some money, but only if you file it.

You can also apply for the credit by following the appropriate links here.

Posted by FreeMarket at 9:56 PM

6 comments:

Anonymous said...

Just another instance of Maryland trying to sneak in a tax increase. For homeowners wishing to dispute their home value I will gladly provide a market analysis free of charge. www.toptechagent.com

January 11, 2008 at 11:53 AM
Anonymous said...

Hardly sneaky at all. This is actually a case of Maryland working to fix a loophole in the property tax system that is allowing thousands of people to claim an unauthorized tax credit for vacation homes and rental properties. The application is very prominently included with the assessment notice, and the new law has been prominently reported in The Baltimore Sun, The Washington Post, and just about every regional newspaper in Maryland. The news about the application has also been on TV and radio news. The SDAT even includes a postage-prepaid envelope in which to return the application. The application is super-simple and takes about 2 minutes to complete.

The landlords and multiple-property owners have long been subsidized by the rest of the property tax payers because of this loophole, and it's about time that this loophole was closed.

January 14, 2008 at 11:00 PM
Anonymous said...

I am a landlord and all of my tax bills are sent NOT to my rental properties but to my business address. This is a sneaky move to trick people out of their hard earned money, pure and simple.

January 17, 2008 at 12:18 AM
Anonymous said...

Wouldn't it be sneaky if they sent the bills to your rental properties and not your business? I'm confused. It seems like they are sending the bills where you are best able to be reached.

If that's sneaky, we're all in trouble.

January 17, 2008 at 9:51 AM
Anonymous said...

Sneaky Sneaky Sneaky. Just like the special session designed to reach into your pocket for more taxes.

I have already had a few of my past clients contact me after I made them aware of this only to find out that they WERE NOT AWARE of the need to re-apply. They simply filed their tax assessment notice because they escrow monthly for the tax payments. If they missed all of the coverage you mentioned then I am sure others have too.

Let's check back after the deadline to see how many folks missed their opportunity to get the credit put back in place and suffer a large increase...

Sure, I understand that landlords and folks with property that is not their primary residence should not continue to get the tax credit. It's only fair that they don't get this credit.

In my opinion the state should have sent sepperate letters with the notice instead of including it with their assessment notice.

January 25, 2008 at 12:16 AM
Anonymous said...

Landlord, the bills are sent to your business address because that's the address that you gave as your mailing address when you settled on the properties. The SDAT will happily change your mailing address to whatever address you'd prefer though, if you just give the local SDAT office a call.

But since you are a landlord, you're rental properties aren't eligible for the homestead credit anyway.

See www.dat.state.md.us for more info.

February 1, 2008 at 1:29 AM

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