Published February 10, 2022
Property Tax Reassessment Tips
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It’s that time of year again: property tax reassessment time! These can be confusing documents, and it can be tricky to determine what they really mean. Last week's post was a video of Josh explaining how to read your tax assessment document and what it means. If you missed it, or would like a refresher, he's also put together a helpful write-up to accompany it!
In summary, the video's three biggest points are:
1. Your property tax assessment is NOT the same thing as the fair market value of your home for sale purposes!
2. Your property tax reassessment notice is one of the easiest ways to find out if you have the Homestead Tax Credit on file with your account. If you don’t, and the property is your principal residence, you want to submit that application immediately!
3. If you disagree with your property tax assessment, you can APPEAL it and it’s actually quite easy!
- Here are other important points that may answer your questions:
• DO NOT CONFUSE YOUR TAX ASSESSMENT WITH WHAT WE COULD SELL YOUR HOUSE FOR! If you want to know what your home is actually worth, let us help you! Click this link and enter your address: >>http://JoshShapiroTeam.com/home_value<<
• It will give you an automated estimate initially (which will be interesting to see how it compares to your tax assessment) but once it comes across our screen, we will pull some real sales data and let you know where we think you stand. Chances are we can sell your house for much more than the assessed value - the assessments typically lag behind.
• Here is a link to apply for the Homestead Tax Credit, which is the easiest money you could ever save. You only have to apply once. If you want help determining if you currently have the Homestead Credit in place on your tax account, just email or call us! >>contracts@joshshapiroteam.com<<
• Tax reassessments in Maryland take place once every three years. If you did not get a reassessment notice this year, don’t worry, it probably wasn’t your year.
• Any increase in your property’s assessed value gets phased in over three years. It’s one of the few nice things the state does for us! This prevents your tax bill from rising rapidly overnight.
• Assessments determine how much actual tax you pay. Every state, county and city has a unique tax rate. You multiply that tax rate by your property assessment to determine how much tax you owe for the year. The tax bill comes separately, and if you have a mortgage on your property, then it is paid by your mortgage company through your escrow account.
- Here’s an example: in Anne Arundel County the state/county tax rate is right around 1%. If the assessed value of your property is $300,000, then your annual tax bill is about $3,000. If your assessment rises to $330,000 this year, your tax bill would go up around $300. But, since the increase is phased in, your tax bill would go up about $100 this year, another $100 next year, and the final $100 increase in 2024. The Homestead Credit may limit that increase even further depending how much your assessment increased.
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