Don't
Forget to Apply For
Your Homestead Tax Credit
Starting in 2008,
a one-time application will be required to continue receiving the
Homestead Tax Credit on a homeowner's principal residence. The Homestead
Tax Credit limits the amount of the taxable assessment on a property.
In Baltimore County, the taxable portion of the assessed value of
someone's principal residence can only increase four percent every
year. For example, if the taxable portion of the assessment on a particular
home was $200,000.00 last year, then this year that homeowner would
only pay tax on $208,000.00 of value, no matter what the actual assessed
value of the property is (It's theoretically possible that they could
pay less, but not very likely). If the actual assessed value is greater,
the homeowner will receive a credit for the additional taxes that
would be owed, but as of this year, to receive the credit, the homeowner
must fill out the application. Homeowners who do not apply for this
credit may see an increase in their property taxes.
It's important
also to be aware that the credit does not transfer from owner to owner.
Anyone buying a home will pay taxes based on the current actual assessed
value of the property, and start receiving the credit the following
year (if they apply).
Downloading
an application is easy, but you should do as soon as possible so you're
credited on this year's taxes.
To download an application, visit the Dept. of Assessment & Taxation
site at www.dat.state.md.us.
