What is the Homestead Credit? I believe the deadline was extended again.....

What is the Homestead Credit?

The homestead credit limits the amount of assessment increase on which a homeowner will pay property taxes in that tax year on the one property actually used as the owner’s principal residence. Legislation enacted by the 2007 session of the General Assembly requires homeowners to submit a one-time application in order to continue their eligibility for the homestead tax credit. Make sure the county is giving you proper credit…it could save you hundreds of dollars!

DECEMBER 31, 2013 was the deadline for filing your Application for Homestead Tax Credit, again. It does not matter whether you have owned your house one year or twenty years or if you are already receiving the credit. An application must be filed. The deadline has been changing for years. If your application is already on file and approved, you DO NOT need to reapply. It hardly matters when home prices rise slowly or have been declining but as the home values are now rising, it would be wise to check and see if you have been approved.  This only applies to homeowner occupied properties and does not apply to all types of homes.  You won't know unless you apply.  What you get a tax savings when prices spike so your taxes rise more gradually on a yearly basis.

How do I know if I need to apply?

It only takes a minute to check to see if you have filed and if you are approved. Follow these steps:

1)      Click on this link: http://sdatcert3.resiusa.org/rp_rewrite/

2)      Select your County

3)      Enter your street number and street name - do not include Street, Court, Drive, etc.

4)      Look at the bottom of the page and see if your Homestead application was filed. If it was filed, the entry will show the date your application was approved.

5)      IF IT SAYS “NO APPLICATION” click on this link for the application: http://www.dat.state.md.us/sdatweb/homestead_application.pdf

Also, even after you have filed and been approved, you may not receive a credit on your tax bill. The credits only appear when the assessed value of the property has increased over the allowable limits each year. With declining assessment values, you may not actually receive a dollar credit each year.

Want to learn more?

To learn more about the Homestead tax credit, click this link http://www.dat.state.md.us/sdatweb/homestead.html or reply to this email with your questions!

Please be sure to share this information with your friends and family members that own a primary residence in Maryland!!