As the saying goes, the only two sure things in life are taxes and….well, let’s just talk about property taxes in Montgomery County!
How the Tax Rate is Determined – The real property tax rate is set each year by the County Council and applied to the assessed value of the property. The fully phased-in assessed value equals the full cash value of the property – according to the county – this is NOT market value. The real property tax is levied annually on all taxable land and improvements (the home and other buildings).
Other charges that may be included in your Real Property Consolidated Tax Bill are:
Maryland Real Property Tax bills are due bi-annually – twice a year. You will receive a copy of your tax bill and it is your responsibility to make sure that your mortgage company has received it and it is scheduled for them to pay out of your mortgage escrow account, if it is established as such. If it is not included in your escrow, you are responsible for payment by the due date.
Special Development Districts: There are several current and proposed development districts in Montgomery County, including Germantown and Clarksburg where the costs of infrastructure are paid back to the county, who has fronted the bonds. This is intended to make sure that new construction has the roads and other services to support the increase in homes.
Maryland is on a three (3) year assessment cycle. If you put your Montgomery County MD home up for sale, you are required to disclose your current property taxes and the estimated taxes a new owner would pay (which will in most cases be higher). You can find information for invidual properties below.
Homestead Credit – To assist homeowners affected by a large assessment increase by capping the increase. It is not applicable the first year that the home was purchased
County Supplemental Tax Credit – For households earning less than $60,000.00
Homeowner’s Property Tax Credit – For those living on limited or fixed incomes, compared to the tax bill
Senior Tax Credit – One of the property owners must be age 70
Fire Sprinkler System Credit – A one-time tax credit to partially offset the cost
The County offers many tax credits and exemptions against the real property tax for which you may be eligible.
If you feel that the estimate of your property value is wrong, the assessment appeal process is available to you. The Myers Team would be happy to help you collect information on comparables to support your appeal, just call us at 301-910-9910.
Property owners will normally receive a Notice of Assessment every three years that shows the old market value as well as the new market value. The new value reflects past sales and other conditions affecting the property from the time of the last assessment.
If you decide to appeal, the first step is to reply to the Notice of Assessment by signing and returning the appeal form within 45 days of the date of the notice. Following this, a personal or telephone hearing will be scheduled. Appeals can also be made in writing, eliminating the need for a hearing.
How to find the current property tax for a specific Montgomery County MD home
How to find the estimated property tax a new owner would pay
About the Author: Bob Myers is the leader of The Myers Team of Re/Max Realty Services. If you have any questions about the Montgomery County property tax or real estate in Montgomery County, feel free to call him at 301-910-9910. Bob moved to Montgomery County in 1986 and has lived in Derwood, Rockville, Gaithersburg, Boyds and Clarksburg.
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