Maryland Homestead Tax Credit | New Process for Eligibility
As most homeowners are aware, in the State of Maryland property taxes cannot go up more than 10% per year for owners in homes that are their primary residence. When you buy a house, you indicate whether or not you intend to occupy the house you’re buying as your primary residence and that kicks in the “homestead exemption.” In the past, no further action has been necessary.
The problem that arises from this process is that some homeowners over the years keep their Maryland residences, but buy another home outside of the area and claim that new home as their “primary” residence. Many of these people “forget” to let the State of Maryland know that they are no longer Maryland residents and their Maryland home continues to carry the homestead tax credit.
This will now change. For all current homeowners, a form will be provided when you get your next assessment (remember, this is done every three years – so some owners may not be notified until 2010) and you will need to fill it out and return it in order to continue to get the homestead credit (assuming you qualify). In purchasing a new property, a form will be provided by the State of Maryland within 180 days of the purchase.
For current homeowners it is extremely important to LOOK FOR THE FORM IN YOUR NEXT ASSESSMENT STATEMENT. Since this is new, it’s not something that most people are going to be looking for. 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!