Montgomery County homeowners who are eligible for Maryland’s Homestead Property Tax Credit must submit a one-time application with the Maryland State Department of Assessments and Taxation (SDAT) by December 31 to establish eligibility. The credit limits the amount of assessment on which a homeowner actually pays taxes on their principal residence. The credit does NOT apply to rental or vacation properties.
If the application has not been submitted to SDAT on time, the taxpayer will not receive the credit in the following year. For example, if the application is received after December 31, 2012, the taxpayer will not receive the credit for the levy year starting July 1, 2013.
The Homestead Tax Credit was created to assist homeowners with the fiscal impact from large assessment increases. The Maryland program limits the annual taxable assessment increase to 10 percent a year. For example, if the annual assessment increases by 25 percent, then the homeowner receives a 10 percent taxable assessment increase and the remaining 15 percent becomes part of the homestead credit.
Homeowners who purchased their dwellings before Jan. 1, 2008 (including those who received the credit in the past) must file to continue receiving the credit.
The application form was included in the assessment notice mailed to one-third of the homeowners at the end of December in each of 2008, 2009 and 2010, as their assessments came up for renewal. Homeowners received their credits through December 31, 2012, via a grace period.
SDAT offers three choices to apply for the tax credit:
File electronically – Call 410-767-2165 or toll free 1-866-650-8783 or e-mail firstname.lastname@example.org requesting an application be mailed. Be sure to include an e-mail address, as well as a street address for the property and the specific County where the property is located. This form will include the property account number and a special “access number” that will enable the property owner to file the form electronically and receive back an e-mail confirmation receipt. To access the form, go to: https://sdathtc.resiusa.org/homestead.
Mail the application – Completed paper applications can be mailed, but the sender will not receive a confirmation receipt. Print and mail the completed application found on the web site at https://sdathtc.resiusa.org/homestead. Applications must be postmarked by Dec. 31, 2012.
Fax the application – Fax the completed paper application to SDAT at 410-225-9344. Applications must be faxed by Dec. 31, 2012.
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