The Maryland Department of Assessments and Taxation (SDAT) today announced its 2023 reassessment of 779,573 “Group 2” residential and commercial properties. The overall statewide increase for “Group 2” properties is 20.6 percent.
County property tax revenues will not increase by 20.6 percent, 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.
The State Department of Assessments and Taxation (SDAT) is responsible for assessing property in Maryland. Assessments conducted by the State, rather than the local governments, help assure taxpayers that the assessing body provides objective, unbiased analysis.
Maryland splits more than 2 million property accounts into three groups, each appraised once every three years. The data shows an average increase in value of 22.2 percent for all residential properties and 15.8 percent for all commercial properties over the three years since the last “Group 2” reassessment in 2020 before the pandemic.
When property values increase, the increase is phased-in equal increments over the next three years. The triennial process and its three-year phase-in schedule deliberately offer some cushion for taxpayers during periods of swift and considerable increases in property values.
“All 23 counties and Baltimore City experienced an increase in residential property values for the fifth consecutive year, while commercial property values also increased in all 23 counties and Baltimore City. This is a good indicator that the market remains strong and growth is steady here in Maryland,” said SDAT Director Michael Higgs.
According to SDAT:
The 2023 assessments for “Group 2” properties were based on an evaluation of 89,880 sales that occurred within the group over the last three years. If the reassessment resulted in a property value being adjusted, any increase in value will be phased-in equally over the next three years, while any decrease in value will be fully implemented in the 2023 tax year. For the 2023 reassessment, 96.4% of Group 2 residential properties saw an increase in property value.
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 Tuesday, December 27, 2022. A map of which properties fall into Groups 1, 2, and 3 and their respective years for reassessment is available on SDAT’s website here. Please visit the Department’s Statistics & Reports webpage for additional statistics and information.
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