2009 Press Release

Table R-1: Average Annual Reassessments & County Assessment Caps

Table R-2: Historical Full Cash Value Before Phase-In

Table R-3: Full Cash Value Before Phase-In

Table R-4: Residential & Commercial Base Change

Number of Appeals Graph( pdf)

Percentage of Accounts Appealed Graph( pdf)

Average Assessment Increase 1987-2009 Graph( pdf)

Reassessments Index

SDAT/Stats Home

SDAT Home

December 30, 2008  

ASSESSMENT NOTICES REFLECT
CHANGE IN MARKET SINCE 2005

Assessment notices mailed today to 731,611 property owners across the State reflect the change in real estate values since these properties were revaluedin 2005.  Over the past three years, property values have experienced a mixed change in value with 50% decreasing or no change and 50% having some increase.  The amount of increase/decrease is reflective of the area being reassessed and price ranges.  On average, statewide residential values decreased by 3.4% and commercial property increased by 17.5%.

Property owners are receiving a redesigned assessment notice.  Properties designated as the owner’s principal residence will receive a Homestead Tax Credit eligibility application if they have not already applied.  The purpose of the application is to certify where their principal residence is located.

Eligible residentialproperty owners will receive a Homestead Tax Credit which limits the increase in their taxable assessments despite the increase in themarket value of the property shown on the notice. The taxable assessment, as reduced by the Homestead Credit, islisted at the top of their notice inside of red boxes. Thisreduced taxable assessmentlessens the impact of rising property values and assessments for homeowner occupied properties.  The Homestead Tax Credit is aState law which mandates that all taxable assessment increases for homeowner occupied properties cannot increase by more than 10 percent per year.  See chart R-1 for individual County Homestead percentages.

In Maryland, properties are reassessed, by law, once every three years.  Properties are required to be assessed at their current market value so that each property owner pays only their fair share of local property taxes.  The properties being reassessed were last revalued for the 2006 tax year.  The new assessments are based upon the examination of more than 71,206 sales which have occurred in the reassessment area over the past three years.  Emphasishas been placed on sales which occurred during the first half of 2008. Any increase in property value is phased-in equally over the next three years.  Any decrease is fully implemented in the first tax year and remains at the reduced assessment for the full three year cycle.

Property value changes varied by region in the state since the last valuation in January 2006.  The largest percentage of decrease in residential property was in Worcester County, Montgomery County, Frederick County and Charles County.  Moderately priced homes in most regions retained or increased their value since 2006.  The largest percentage of increase in assessed value was in Baltimore City, Allegany County, Prince George’s County, and the central Eastern Shore area of Maryland.  Approximately half of all residential property values decreased or remained the same since the last valuation.

The assessment only partially determines a property owner’s tax bill.   Ultimately, next July’s tax bill will be calculated with the tax rates which local governments will set in the spring.  As part of the budgetary process, the property tax rates are established by the revenue requirements of each local government.  Local governments may offset assessment increases by lowering their tax rates to the “constant yield” tax rate level.  The constant yield tax rate provides local governments with a stable level of property taxes from one year to the next.

For further information, contact the State Department of Assessments and Taxation at 410-767-1184.  Extensive reassessment data and information is available from the Department’s website at www.dat.state.md.us.