CATEGORY:

TRIENNIAL ASSESSMENTS

300

SUBJECT:

Revaluation in Three Year Cycle

010

TOPIC:

Real Property

010

Date Issued
6/19/79

Revision #5
5/22/91

The Tax-Property Article, Title 8-104, provides that in any three year cycle, real property shall be revalued if any of the factors listed below caused a change in the value of the real property.

1. The zoning classification is changed at the initiative of the owner or anyone having an interest in the property;
2. A change in use or character occurs;
3. Substantially completed improvements are made which add at least $50,000 in value to the property;
4. An error in calculation or measurement of the new property caused the value to be clearly erroneous; or
5. A residential use assessment is terminated pursuant to Section 8-226;
6. A subdivision occurs. For the purposes of this subsection "subdivision" means the division of real property into two (2) or more parcels by subdivision plat, condominium plat, time share metes and bounds or other means.

When revaluation occurs for any of the above mentioned reasons, the value shall normally be based on the first year of the three year cycle for the assessment group the property is in. The value is then adjusted for the proper phased-in value for its group. In this manner revalued property is uniformly valued the same as property in its assessment cycle.

The following is clarification of departmental policy:

1. Change in Zoning Classification - Supervisors have previously been instructed to arrange for a formalized process in acquiring zoning information (Notes: April, 1988) and to interpret a change in classification to mean from one category to another (Martingham: May, 1988). The out-of-cycle reassessment (for the following July 1)for a zoning change is allowed only for a change that takes place during the current 3-year cycle. If the change occurred in a previous cycle and recently discovered, it can be revalued only in-cycle. If the zoning classification is changed by map amendment, no out-of-cycle valuation takes place. The property is valued for its next cycle at fair market value or as "rezoned residential property", whichever is appropriate.
2. Subdivision - Subdivision includes a division into 2 or more parcels...by metes and bounds. A parcel split from a parent account by metes and bounds may be revalued for the following July 1. It is to be valued as similar parcels were valued at the last reassessment, not based upon the sale price. The parent account (residual) should also be revalued as similar sized parcels were valued on the last reassessment.
3. Substantially Completed Improvements - Any new dwelling, or new construction that adds $50,000 or more to the new market value, shall be added for the appropriate annual, semi-annual, or quarterly date of finality and the phased-in values adjusted accordingly. Substantially completed, means "something other than final completion of the building..." (Radian, et al. v. Supervisors of Assessments of Montgomery County, 254 MD. 294 (1968))
4. Errors in Calculation or Measurement - Refers to mathematical errors or incorrect measurements only, not missed items such as air-conditioners, basement rooms, etc.. No increase will be made as a result of information discovered because of an action by the owner, unless specifically approved by the central office. In other words, if we would not have discovered the error without the inquiry, request, appeal proceedings, etc., of the owner, we will not process the correction resulting in an increase. Corrections for all classifications of property should be noted on the property worksheet and incorporated at the next reassessment.