An Alert To All Maryland HomeownersHome Owners reminded to pursue tax break December 16, 2007 ANNAPOLIS (AP) — Maryland tax officials are reminding homeowners of a change in state law that means they won't automatically receive a property tax break as they have in the past. Maryland's Homestead Tax Credit law puts a 10 percent limit on the amount of a home's increased value that can be taxed each year. The change means homeowners now have to apply for the tax break. "This is huge," C. John Sullivan, director of the Maryland Department of Assessments and Taxation, told the Baltimore Sun. "Many people are not aware of it. They look at what they pay on, and that's it. "We certainly don't want anyone to panic over it." The credit applies only to primary residences and the change is intended to identify those who are illegally using the cap. "Someone tooling around the Internet found that neighbors were renting out houses but were still getting the [tax] credit," said Delegate Anne R. Kaiser, Montgomery Democrat and primary sponsor in the House of Delegates. A third of the property in the state is reassessed each year. More than 700,000 Maryland property owners are due to receive new state assessment notices this month and most homeowners will have five years to file for the credit. Those who buy a home after Dec. 31 will have 180 days from the date of purchase to apply for the credit. If they don't apply for the credit by the end of 2012, homeowners will be liable for property taxes on the full value of their homes, which could boost some tax bills by thousands of dollars, tax officials said. Harold Lloyd, a northern Baltimore County resident and former state assessment official who for years has advised people trying to lower their home assessments without charge, criticized the change. "People do not work with assessments continuously. They're just normal citizens. Once you get that notice, you just put it aside," Mr. Lloyd said. "It doesn't make sense to me." Note: You can download the Homestead Tax Credit application in PDF format below, or you can go online at: Homestead Tax Credit Application (PDF) The online process is a little confusing concerning the "access code" entry and how to obtain it. You must have your current property tax assessment statement available to provide the required information. If you use the tax credit form--make sure you keep a photocopy for your records. This Information Is Provided By The Associated Press
In accordance with Title 17 U.S.C. Section 107,
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