Comments on: Maryland Homestead Tax Credit Application

By: Yardman

Yardman — Tue, 24 Feb 2009 18:27:38 +0000

I bought a home the ending of Nov 2008. I agreed that it will be my primary residence, but I haven’t moved in yet. I’m still fixing up the place and plan to move in by no later than May of 2009. Am I eligible for the tax credit? I’m not renting out my home nor is it used as a vacation home, it’s just vacant.

By: poor boomer

poor boomer — Sat, 10 Jan 2009 23:16:14 +0000

Why are renters excluded? If I rent a house or apartment, why shouldn’t I get the same protection from huge spikes in property values?

By: Patrick

Patrick — Sat, 10 Jan 2009 14:25:43 +0000

I just bought my first home and I have only been living in my home for a little over 3 months now. I received an application in the mail about the Maryland Homestead Tax Credit when we first bought our house. I filled out the application online. We also just received our house assessment and it was way less that what our house was appraised for when we bought it a few months. I’m not sure if this helped my assessment, but I was pleased it was so low

By: thomas

thomas — Sat, 10 Jan 2009 08:08:15 +0000

Wish every state had this tax break.

By: Chiko

Chiko — Sat, 10 Jan 2009 04:41:57 +0000

I am going to have to check this out. I also live in Maryland.

By: Ken Montville - MD Suburbs of DC

Ken Montville - MD Suburbs of DC — Sat, 10 Jan 2009 03:10:16 +0000

This is great advice. I would mention two things here:

1. The assessed value and the purchase price are really two different things. The purchase price is agreed upon between the buyer and seller and, for purposes of the mortgage, validated through an appraisal ordered by the mortgage company to substantiate the collateral interest held by the mortgage company. In MD the assessed value and the market value are supposed to be close but often they are not which is how people can justifiably appeal the assessments that come around every three years.

2. New owners (i.e., buyers of real estate even for primary residences) don’t enjoy the Homestead Tax Credit until they’ve lived in the property for the first year. Depending on which County you purchase in it can be a real eye opener to see that your first year of taxes can be substantially higher than the person from whom you bought the house. In fact, in Montgomery County, MD it’s so substantial that you must disclose, by County law, the new owners’ tax exposure in all marketing and advertising for homes in the County (this hasn’t gone Statewide…yet).

On last thing, most of the time this application for the Homestead Tax Credit is slipped into you tax assessment notice which most people just skim and toss…without realizing they really need to fill out the application and send it back into the State.

So, KUDOS, Jim, for pointing this out and linking to the online form people.

By: SimplyForties

SimplyForties — Sat, 10 Jan 2009 02:11:40 +0000

Thanks! I’m passing this along to my sister in Frederick.

By: Miss M

Miss M — Fri, 09 Jan 2009 19:47:30 +0000

Los Angeles exempts a bit of the value from the assessment if the house is owner occupied. But the policy must date from the 60’s cause the exemption is only $7,000! So on a $500,000 house you are only taxed on $493,000 – yeah it doesn’t amount to much. But we also have prop 13, which limits annual increases to 2%. If you’ve owned a home forever you are paying almost nothing in property taxes, I pay 3 times the tax my neighbor pays and my house is only 1/4 the size of his. I better get a reduction this year, my property is worth $100,000 less than I paid.