Maryland Homeowners Must Now Apply for Homestead Tax Credit

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.

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.

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.

Thank You for your quick repy

is there is dead line.....some how i seem to have missed the news

Looks like we have missed this also. I don't remember receiving any application. We bought a new home in 2007 May. Could it have been missed due to that?

Kindly advise,

Suma.

I have updated this blog article to include specific information regarding application filing deadlines.  See the section titled "UPDATE".  I hope this clarifies things.  Please let me know if you have additional questions.

This is really a nice post

I don't understand why the MD website does not clarify these deadlines. Where did you find these specific deadlines? Why hav I heard that these are artifciale deadlines?

I agree that the Maryland Department of Assessments and Taxation and the administering counties/municipalities have not done an ideal job of explaining the deadlines or making it clear to homeowners which year in the three year re-assessment rotation a particular property falls within.  Questions regarding enforcement of the stipulated deadlines should be directed to the Maryland Department of Assessment and Taxation or the agency within your county/muncipality that oversees property assessments.    

we just got our house assessed again because it was assessed as a three unit house which it has not been for 20 yrs how do i  apply for the homestead cedit and how do i find out how to apply for the homeowner credit    ty

Walter, my recommendation would be for you to contact directly the Maryland Department of Assessments and Taxation about your specific assessment and homestead/homeowner credit concerns by calling 410-767-2165 or 888-650-8783.

Concerning each tax credit (Homeowners and Homestead): if I rent a room to a student within my own permanent residence, are these credits affected in any way? Thanks.

Brandon, thanks for this great info. If one were to buy a property in Baltimore City that was just (11/0 assessed at 150k for purchase price of 250, will house be re-assessed upon sale? Or will house not be re-assessed for two years (11/2010, ie on its 3-year schedule)? Reason I ask is, is there any way to use HomeStead Tax Credit to maintain assessment of 150 in this situation? THANKS

Gary, the Homestead Tax Credit is not affected if you rent out a portion of your home as long as you maintain the home as your principal residence.

Wick, the 3-year re-assessment schedule is not affected by the sale of a residence.  The re-assessment will always occur every three years.  Keep in mind, however, that the previous owner's tax bill may be lower than what you will pay if the previous owner had the benefit of the Homestead Tax Credit.  New owners are cannot receive the benefit of the Homestead Tax Credit until they have owned the property as a primary residence for one full year.  If you believe the assessed value is to high, there is an appeal process available.  For info on the appeal assessment process, go to http://www.dat.state.md.us/sdatweb/appeal.html.