Maryland Homestead Exemption

Maryland Homestead Exemption

Maryland Homestead Exemption - To help homeowners deal with large assessment increases state law has established the Homestead Property Tax Credit. The Homestead Credit limits the

increase in taxable assessments each year to a fixed percentage. Every county and municipality in Maryland is required to limit taxable assessment increases to 10% or less each year. Listing of homestead caps for each local government.

The Homestead Credit applies only to the principal residence of the property owner and is based on the total market value for the dwelling and land associated with the dwelling.

Technically, the Homestead Credit does not limit the market value of the property as determined by the Department of Assessments and Taxation. It is actually a credit calculated on any assessment increase exceeding 10% (or the lower cap enacted by the local governments) from one year to the next. The credit is calculated based on the 10% limit for purposes of the State property tax, and 10% or less (as determined by local governments) for purposes

Maryland Homestead Exemption Conditions

The tax credit will be granted if the following conditions are met during the previous tax year:
  • The property was not transferred to new ownership.

  • There was no change in the zoning classification requested by the homeowner resulting in an increase value of the property.

  • A substantial change did not occur in the use of the property.

  • The previous assessment was not clearly erroneous.
A further condition is that the dwelling must be the owner's principal residence and the owner must have lived in it for at least six months of the year, including July 1 of the year for which the credit is applicable, unless the owner was temporarily unable to do so by reason of illness or need of special care. An owner can receive a credit only on one property - the principal residence.

Homestead Exemption Appeal Rights

If you have been denied a Homestead Tax Credit and you believe that you are eligible, contact your local assessment office. A final denial of a Homestead Tax Credit by the assessment office may be appealed within 30 days to the Property Tax Assessment Appeal Board in the jurisdiction where the property is located.

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