Maryland Homestead Tax Credit Process for Eligibility Reminder

Just a little over a year ago, I posted the new regulations in Maryland requiring that property owners whose homes are their primary residence sign up for the "homestead exemption.” I reminded people that in the State of Maryland property taxes cannot go up more than 10% per year for owners in homes that are their primary residence.  In the past, when you bought a house, you indicated whether or not you intended to occupy that house as your primary residence and, if you did, that established the “homestead exemption.” The new law required all owners to fill out a form, attesting to this primary residence status. The form is provided in the tax assessment, which is sent to owners on a three year rotating basis.

Since writing that blog, many people have indicated that they did receive the form and made sure to fill it out and return it. I fear that others, however, were more focused on the amount of their new assessment -- and their right of appeal -- and perhaps missed the Homestead Exemption Form.

The change in the process for getting this tax break corresponded with the downturn in the market. No one planned this, of course – but the result could be that many people open their assessments and immediately start planning their appeal – and miss the fact that they need to process the Homestead Form in order to keep that important status.

For current homeowners it is extremely important to LOOK FOR THE FORM IN YOUR NEXT ASSESSMENT STATEMENT. If you’ve already received your assessment and didn’t see the form, you can call the Maryland Department of Assessments and Taxation at 410-767-2165 or 1-966-650-8783.

This credit is a substantial savings for homeowners, so don’t unintentionally give it up!

And, for those of you who missed the form because you were focused on your tax assessment, feel free to contact me for information on “How to Appeal an Unappealing Tax Assessment.” 

Related Links

• Maryland Department of Assessments and Taxation