Maryland Homeowners Must Now Apply for Homestead Tax Credit
Posted Jan 10, 2008 @ 2:34 pm, Viewed by 1955 Visitors, Read 2251 Times.Beginning January 1, 2008, property owners of a principal residence in Maryland will be required to file a one-time application in order to receive the Homestead Tax Credit. This credit limits the amount of assessment increases for real estate tax purposes. Previously, eligibility for the credit was automatic, but new legislation passed in 2007 by the Maryland General Assembly now mandates the one-time paper or online application filing.
The Maryland Department of Assessments and Taxation will be sending notices to all homeowners beginning in January 2008 for the 1/3 of homeowners being reassessed for this year. All other homeowners (the other 2/3) who will be reassessed in 2009 and 2010 do not need to file the application until that time, and may not receive a notice of the one-time application until they receive their statement of reassessed value.
The Homestead Tax Credit only applies to principal residences, not rental or vacation properties. It can, however, provide a significant savings for residents. To use a personal example of how important the credit can be for homeowners (and thus the importance of submitting the application in a timely manner), the Homestead Tax Credit reduces my annual property tax bill by about 35%.
More information about the Homestead Tax Credit and the now mandatory application can be found at the Maryland Department of Assessment and Taxation website.
Branden Schroeder
Prudential Carruthers Realtors
Please visit my Maryland Real Estate website
Phone: (410) 571-1378
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Social Bookmarking6 Responses to “Maryland Homeowners Must Now Apply for Homestead Tax Credit”
Thanks for the comment, Louis. You are correct that the "Homestead" credit and "Homeowners" credit are two distinctly separate property tax credit programs. The similarity in names may cause some initial confusion. To be clear, the "HOMESTEAD" Tax Credit is available to all Maryland principal residence homeowners and it is this credit that had previously been automatically applied but now will require the one-time application. The "HOMEOWNERS" Tax Credit eligibility is limited to homeowners with low income (along with a few other factors) and must applied for annually.
samuel presgraves
How do I know if I have recieved the Homestead Tax Credit
I sent in the aplacation when it came with the assesment
Submitting the one-time application is all that is required to ensure eligibility for the Homestead Tax Credit. If you want to confirm that the application was properly received, contact the Central Office for the Homestead Tax Credit Program at (410) 767-2165.
samuel presgraves
Thank You for your quick repy
Brad
is there is dead line.....some how i seem to have missed the news
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Please note that that the Homestead Property Tax Credit is entirely separate from the Homeowners’ Property Tax Credit. In the past, it was not necessary to apply for the Homestead Property Tax Credit, as the credit was applied automatically when appropriate (and many times, when inappropriate, and that's why the new law was passed). The Homestead Property Tax Credit application must be completed just one time, unless you move to another home. The form is very simple and quick to complete. A yearly application has always been required and is still required to get the Homeowners' Property Tax Credit, as that credit requires that the applicant's income for the past year be stated on the application form. Generally, only low to moderate income homeowners qualify for the Homeowners' Property Tax Credit, whereas there is no income limit for the Homestead Property Tax Credit.