City Announces Significant Changes to Property Tax Bills
Changes increase tax credit transparency while mayor’s property tax reduction is implemented.
Today, as the Board of Estimates certifies the real property tax rate for Fiscal 2013, the Baltimore City Department of Finance announces that the City’s real property tax billing has been updated.
The new bills include the first installment of Mayor Stephanie Rawlings-Blake’s new Targeted Homeowner’s Tax Credit (THTC), which will reduce the effective property tax rate by 20 cents by 2020 for Baltimore City homeowners. The credit represents the first property tax reduction for homeowners since 2007. Under the credit, an owner-occupied home assessed at $200,000 would see an approximate annual tax reduction of $40 in 2013, growing to $400 by 2020.
For those property owners receiving the mayor’s Targeted Homeowner’s Tax Credit, the bill displays the exact amount of the credit granted to eligible owner-occupied properties. For the first time, the bill also includes a new effective city tax rate calculation that demonstrates the net tax rate a citizen is charged after all tax credits are applied to the account.
A notated sample of the new bill can be found here [link
The new language on the bill reflects the language on the citizen property tax credit applications:
Residents are asked to Contact the Finance Department’s Billing Information unit at 410-396-3987 to answer any questions about the format or any information on the new bill.
- The previously listed “City Assessment Credit,” now appears—beginning on the July 1, 2012 bill—as “City Homestead Credit.” This credit limits eligible owner-occupied properties in Baltimore from assessment increases greater than 4% annually on the City tax assessment.
- The previously listed “State Assessment Credit” now appears as “State Homestead Credit.” This credit limits eligible owner-occupied properties in Baltimore from assessment increases greater than 10% annually on the State tax assessment.
- The previously listed “Homeowner’s Credit” now appears as “State Homeowners Credit” to clarify that this credit is a State credit. The State Homeowner’s Credit limits increases in property taxes based on the homeowner’s income.
In addition to the changes on the tax bill itself, an insert with the bill [link
] provides two important notices regarding State tax credits:
- Homestead Tax - Credit Application—To continue receiving this credit, eligible homeowners must complete a one-time application and return it to the State Department of Assessments and Taxation by December 31, 2012. Failure to complete and return this application by December 31, 2012 will result in homeowners losing their Homestead Tax Credit and losing the option to pay their taxes semi-annually. This application can be completed electronically by visiting SDAT’s website at www.dat.state.md.us. Homeowners may also call the Homestead Tax Credit Division at 410-767-2165 from the Baltimore Metropolitan area or (toll free) 1-866-650-8783 elsewhere.
- State Homeowner’s Tax Credit—Homeowners, regardless of age, may be entitled to a credit against real property taxes upon the dwelling, which is their principle residence. In Fiscal 2012, 10,829 city homeowners saved about $14.4 million by taking advantage of this program. The amount of credit is based upon a graduated formula established by law, which limits the homeowner’s property tax liability to a certain percentage of combined gross household income. A homeowner must apply for the credit each year, no later than September 1 of the taxable year for which a credit is sought, on a form provided by the State Department of Assessments and Taxation. To obtain an application or additional information, please contact the State Department of Assessment and Taxation, Homeowner’s Tax Credit Program at 410-767-4433 in the Baltimore area. All other areas call 1-800-944-7403.
Visit our Website @ www.baltimorecity.gov