[Chat] The homestead tax credit
Stephen J Gewirtz
gewirtz at bellatlantic.net
Tue Apr 3 22:48:04 EDT 2012
An article in today's Sun reports that this year, those who have not
applied for the homestead tax credit will lose it.
The homestead tax credit limits increases in your effective assessment
to 4% per year compounded for City and CVCBD tax purposes and to 10%
compounded for State tax purposes. It applies to any owner occupied
principal residence. However, a married couple may not receive the
homestead tax credit for two different properties (but I suspect that
there is an exception here if they are legally separated). On the other
hand, a person may claim the homestead tax credit for his/her own
principal residence and may have his/her name on the deed of another
property which receives the homestead tax credit as long as the second
property is the principal residence of another owner who is not the
first person's spouse. For example, I receive the homestead tax credit
on my own residence, and my son was eligible to receive it on his
residence even while my name was on his deed as a co-owner (in order to
get a better mortgage rate).
If you own your home and if it is your principal residence, it is
important that you make sure that you have filed the form to receive
the homestead tax credit. Otherwise, you may pay a lot more in real
estate taxes than you need to.
To check if you have already filed the form, go to this web site:
Use the pull down menu to put in Baltimore City, and then click on
"Street Address." Put in your address (and for the street, leave out
north, south, etc., and leave out street or avenue). For example, if
you live on North Calvert Street, just put in calvert (it does not
matter whether you capitalize or not). And for East 27th Street, just
put it 27th.
You will get a page showing your assessment. At the bottom of the page,
it will show whether you have been approved for the homestead tax
credit. In my own case, it shows that the homestead tax credit was
approved 4/30/2008. That is about when the State first asked people to
file the form either by snail mail or online, and I filed online.
If you have not been approved for it, go to this web page:
Here, you can use the pull down menu to put in Baltimore City, click on
"Continue," and fill out the form. It will ask for your social security
number and other information to make it possible for the State
Department of Assessments and Taxation to check that neither you nor
your spouse if any have any other property receiving the homestead tax
In my own case, without the homestead tax credit, I would have paid
almost twice what I did pay in real estate taxes on my last tax bill.
My effective assessment and my tax will go up 4% for the City and CVCBD
taxes and 10% for the State tax, but that will still be a lot less than
my tax would be without the homestead tax credit.
*Do not get caught paying more than you have to.
*I have included some community leaders in this email in case they want
to forward my advice to their constituents. And I know that City
Council Member Mary Pat Clarke very much encouraged her constituents to
file the form when it was first sent out by the State.
BTW, I just checked some of my nearest neighbors, and almost all have
filed the form. I did find one couple who had not filed, and I will
notify them in a separate email.
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