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Homestead Tax Credit

 

Deadline to apply for the Credit for 2013 property tax bill is December 31  Department of Finance Reminds Homeowners Homestead Tax Credit Deadline is Approaching 

ELLICOTT CITY, MD – According to Howard County’s Department of Finance, approximately 30,000 households in the County have not yet applied for the Homestead Property Tax Credit.  The Department would like to remind these households that they have until December 31, 2012, to file the one-time Homestead application to the Maryland State Department of Assessments and Taxation (SDAT).  Applications not submitted by the end of this year, will not be eligible for the Homestead Credit on their July 1, 2013, tax year bill. 

The Homestead Credit was established to help homeowners deal with large assessment increases on their principal residence by limiting the amount of the increase on which eligible homeowners actually pay on property taxes each year.  The Homestead Credit does not limit the market value of the property as determined by SDAT, but is instead a credit calculated on any assessment increase exceeding 5% from one year to the next – the State cap is 10%, but the Credit allows a lower cap to be enacted by the local governments.  Essentially, the Credit ensures homeowners pay no property tax on the market value increase above the cap. 

To find out if you have already filed an application and are awaiting approval or have been approved for the Homestead Credit in the past five years, visit SDAT’s website at www.dat.state.md.us and click on “Real Property Data Search.”  A Howard County homeowner remains eligible for the Homestead Credit as long as the applied for dwelling remains their primary residence. 

Homeowners who have not yet applied for the Homestead Credit should contact SDAT by calling either 410-767-2165 (local) or 1-866-650-8783 (toll-free), or by e-mailing hcredit@dat.state.md.us, to request an application form be sent to their address.  If requested by e-mail, homeowners should include the street address and County of their primary residence.  Homeowners will then receive the Homestead Credit application form, which will include their Property Account Number and a special “Access Number” should they choose to file the form electronically versus mailing it to SDAT.  Applications submitted electronically will receive an e-mail confirmation receipt, whereas, applications mailed in will not. 

A homeowner who submits an application that is inconsistent with income tax and motor vehicle records of the State shall be required to later submit additional verification in order to be considered for the credit.   

For questions about the Homestead Tax Credit, visit www.dat.state.md.us and click on “Homestead Eligibility Application,” e-mail the Homestead unit at homestead@dat.state.md.us or call 410-767-2165 (local) or 1-866-650-8783 (toll-free).  The State’s local Howard County SDAT office can also be reached at 410-480-7940 for questions about the Credit as well.