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Maryland Homestead Tax Credit to Expire on December 31, 2012
Nov 30, 2012
The 2007 Credit
The Maryland General Assembly enacted the State of Maryland Homestead Tax Credit in 2007, which is scheduled to expire on December 31, 2012. However, you still have time to claim the credit if you have not done so already.
The Homestead Tax Credit limited the amount of assessment increase on a homeowner’s principal residence which is subject to property taxes. The Homestead Tax Credit requires all Maryland counties and municipalities to limit increases in taxable assessment to 10 percent each year, though some counties and municipalities have set the limit even lower.
The application process was instituted to prevent homeowners from receiving the credit on properties that are not a primary residence, such as vacation homes and rental properties; a process through which the state was losing substantial revenue.
It is a key distinction that the Homestead Tax Credit does not limit the appraised market value of a property, but only the amount of increase subject to property tax. It is technically a credit on any taxes paid on an increase in assessment values in excess of 10 percent.
The Maryland Department of Assessment and Taxation has more information and answers to frequently asked questions about the Homestead Tax Credit.
If you have not yet applied for the Homestead Tax Credit since 2007, you still have time to submit an application by December 31 to ensure continued eligibility. The Tax Credit requires only a one-time application, to prevent abuse and to keep it from being granted on multiple properties, so if you currently receive the credit or have applied since 2007, there is no need to reapply.
If you don’t know whether you have filed the application, search the Maryland Department of Assessments and Taxation’s Real Property Database for your home to view your application status.
It’s been a pleasure working with Andreas Alexandrou and his team at Gelman, Rosenberg & Freedman CPAs.
Peter Canine | Director of Finance