The Maryland State Department of Assessments and Taxation (SDAT) today announced its 2020 reassessment of 769,668 residential and commercial properties. The overall statewide increase for “Group 2″ properties was 8.9%; the second consecutive year in which all 23 counties and Baltimore City posted an increase.
Counties should not expect property tax revenues to increase by 8.9%, as this reassessment only covers one-third of property accounts. Furthermore, when property values increase, the increase is phased-in equal increments over the next three years.
In Maryland, there are more than 2 million property accounts which are split into three groups, each appraised once every three years. The 2020 reassessment represents an average increase of 7.3% for all residential properties and 13.5% for all commercial properties since the last “Group 2” reassessment in 2017.
According to SDAT:
The overall statewide increase nearly matched 2018’s 9.1% increase.
“All 23 counties and Baltimore City experienced an increase in residential and commercial properties for the second consecutive year, which is a good indicator the market remains strong and growth is steady,” said SDAT Director Michael Higgs. “I want to thank all of the Department’s real property assessors throughout Maryland for the hard work and dedication they have displayed this year to ensure that Maryland’s properties continue to be assessed fairly and uniformly. As part of our Tax Credit Awareness Campaign, each reassessment notice includes information about the Homeowners’ and Homestead Tax Credits, which save Marylanders more than $260 million in taxes each year.”
The Homeowners’ Tax Credit provides relief for eligible homeowners by setting a limit on the amount of property taxes that are owed based on their income. Residential property owners who complete a one-time application and meet certain eligibility requirements can also receive a Homestead Tax Credit, which limits their principal residence’s taxable assessment from increasing by more than a certain percentage each year regardless of their income level. Although statewide legislation caps the increase at no more than 10% per year, many local governments have capped property taxes at lower percentages.
Property tax assessment notices were mailed to Group 2 property owners on Friday, December 27, 2019. A map of which properties fall into Groups 1, 2, and 3 and their respective years for reassessment can be viewed on SDAT’s website here. For additional statistics and information, please visit the Department’s Statistics & Reports webpage.
Stay tuned to Conduit Street for more information.