Local Real Estate NEWS!

HOMESTEAD TAX CREDIT

New Legislation enacted during the 2007 Session of the General Assembly will,
for the first time, require homeowners to file an application with State Department
of Assessment and Taxation in order to claim the homestead Tax Credit. The
legislation will require home owners to provide information to verify the
taxpayer’s eligibility for the credit. The Homestead Tax Credit program is
effectively a cap on State and Local property tax assessment increases. The State
requires a 10% cap on property tax assessment increases in any given year and
eighteen of the 24 local governments have exercised their authority to lower the
cap. The application for the Homestead Tax Credit is not yet available but
Maryland REALTORS may wish to advise clients that an application must be filed
to claim the credit within 180 days of the date the ownership to the dwelling if
transferred after December 21, 2007 or before December 31, 2012 for a dwelling
that was last transferred to new ownership on or before December 31, 2007.
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