[Chat] prop tax

Joshua Fruhlinger jfruh at jfruh.com
Sat Jul 9 15:33:15 EDT 2011


Right, but because of the tax credit you were probably never paying the full tax on that 116k.  That's the credit part.

jf
On Jul 9, 2011, at 1:31 PM, jberlin <jdydee at verizon.net> wrote:

> i appreciate everyone's response. However I still don't get it. It sounds as if I am still paying the tax for last years assessment and then some. 3 years ago my assessment was 116k. It went up to 133k. Now it is back down to 116k. Yet I'm paying more than the previous yrs.
> 
> On 07/08/2011 05:52 PM, Stephen J Gewirtz wrote:
>> Joshua is right about how the  taxes work.  Under the homestead tax law, if your home is owned by you and is your principal residence, your effective assessment (what you actually pay taxes on) can go up by no more than 10% per year compounded.  The 10% figure is used for state tax purposes (if you look at your bill, you will see that it shows both a City tax and a State tax).  And the counties and Baltimore City are allowed to use the 10% figure or to adopt a lower figure -- Baltimore City uses a 4% figure -- for local tax purposes.
>> 
>> If you look at your tax bill, it shows a State tax rate of 0.112% and a City tax rate of 2.268% of the assessed value of your house, and it gives the State and City taxes based on your assessment and based on those rates, as well as a total tax.  Those two numbers will be a lot less than they were last year because of the lower assessments.  Those numbers reflect what you would pay if there were no homestead tax credit.
>> 
>> The next two lines on the bill are a State assessment credit and a City assessment credit.  Those lines represent how much you are saving because of the homestead tax credit.  And the line after that is the net tax amount, which is how much you have to pay if you pay in August or September (you get your tax reduced by one half percent if you pay in July).
>> 
>> Let me take my own house as an example.  Six years ago, my house was assessed a little bit more than $83K.  Three years ago, it was assessed for a little bit more than $255K, i.e. it a little bit more than tripled.  This year, it was assessed for a little bit more than $178K.
>> 
>> So, six years ago, five years ago, and 4 years ago, I paid a tax on $83K of assessment (actually, I paid less than that. because the $83K was an increase over the previous assessment, and that increase was phased in over 3 years).  Then, three years ago, I paid an actual State tax based on an assessment of $83K * 1.10 and a City tax based 




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