MARYLAND STATE DEPARTMENT OF ASSESSMENTS AND TAXATION

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MARYLANDSTATE DEPARTMENTOFASSESSMENTS AND
TAXATION

• GFOA
• SPRING, 2009
• C. John Sullivan, Jr.
• Director

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THE ASSESSMENT PROCESS

• TRIENNIAL ASSESSMENT SYSTEM
• Property valued once every three years.
• FAIR MARKET VALUE
• THE THREE APPROACHES TO VALUE
• Market
• Cost
• Income
• VALUE INCREASES ARE PHASED-IN
• A new appraisal of 360,000 is compared to an
  old appraisal of 300,000. The increase is
  phased-in equally over the next three years
• 1st Year 320,000
• 2nd Year 340,000
• 3rd Year 360,000

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  THE RESIDENTIAL APPRAISAL (ASSESSMENT)

• THE ASSESSOR
• In Maryland, 2.2 million property accounts
• Valued by 220 Field Assessors
• Approaches used by assessors to estimate fair
  market value for residential properties
• (1) Sales approach
• (2) Cost approach and(3) Income approach
  is appropriate to properties which produce
  an income stream from rent or lease agreements
  (i.e., commercial/industrial
  properties and certain residential
• properties).

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Real Property Number of Accounts

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  APPEALING YOUR ASSESSMENT

• FIRST STEP - Supervisor's Level
• SECOND STEP - Property Tax Assessment Appeals
  Board
• THIRD STEP - Maryland Tax Court

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  APPEALING YOUR ASSESSMENT

• ON REASSESSMENT You may appeal the new market
  value assessment notice that you receive every
  three years. You must appeal within 45 days of
  the date of the notice (Available Methods Phone,
  In Writing, In Person, Internet Filing)
• PETITION You may file a Petition for Review by
  January1 of any year. Any change would take
  effect the following July.
• ON PURCHASE If you purchase a property and the
  property is transferred after January 1, but
  before July 1, you may file an appeal within 60
  days of the transfer.

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Real Property AppealsComparison of 2008 and 2009

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  PROPERTY TAX RELIEF MEASURES

• HOMEOWNERS/RENTERS PROPERTY TAX CREDIT
  PROGRAMS
• This State funded program provides over 49
  million in needed relief to homeowners and
  renters.
• 46,809 homeowners received an average tax credit
  of 1,006 and approximately 9,400 renters
  received an average tax credit of 278.
• Twelve counties and four towns have supplemental
  Tax Credit Programs.

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COUNTY SUPPLEMENTAL TAX CREDITS

• In addition to the State of Marylands
  Homeowners Tax Credit, supplemental tax credits
  are available to eligible homeowners in the
  following twelve counties and four towns
• COUNTIES TOWNS
• Anne Arundel Gaithersburg
• Baltimore Rockville
• Calvert Greenbelt
• Caroline Hyattsville
• Carroll
• Charles
• Frederick
• Garrett
• Harford
• Howard
• Kent
• Montgomery

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HOMEOWNERS TAX CREDITSCOMPARISON OF FY 2009
AND FY 2008

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MARYLAND REAL PROPERTY TAX RATES (Note This
does not include municipal rates, water sewer
rates, fire districts, etc.)
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  HOMESTEAD TAX CREDIT PROGRAM

• State law requires that county and municipal
  governments set a homestead credit percentage
  between 0 and 10 for purposes of local property
  taxation.

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2009 County Established Assessment Caps
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IMPACT OF 5 HOMESTEAD CREDIT CAP
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Based on AppealReduction From 320,000 to
290,000 (5 CAP)
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IMPACT OF 10 HOMESTEAD CREDIT CAP
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Based on AppealReduction From 320,000 to
290,000 (10 CAP)

• 
  
• Market Value As of
• Jan. 1, 2009
• 290,000
• 
  
  

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Average County Homestead Credit- 2008
SDAT 6/08
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NEW HOMESTEAD TAX CREDIT APPLICATION

• 476,388 Applications Included in December 2007
  Assessment Notice.
• 505,000 Applications Received Back by March 31,
  2009.
• 471,068 Applications Included in December 2008
  Assessment Notices.
• Departments Outreach Efforts for Non-filers.