As part of the 2007 regular session, the Legislature passed SB 522 “Homestead Tax Credit – Eligibility Verification-Application” – its purpose is to prevent Maryland property owners from receiving a homestead tax credit on more than one property.  The law became effective 10/1/07 and will impact properties transferred after 12/31/07.  Current property owners will have to file an application to continue a homestead tax credit when they receive their tri-annual reassessment notice.  For properties that transfer after 12/31/07, the new owner will have 180 days to file the application (which will be mailed to the owner by SDAT).

Property owners who use the property as their principal residence will receive an assessment notice containing a Homestead Tax Credit Application for the first time this year beginning January 1, 2008. This one-time application must be submitted in order to insure that the credit is granted only on eligible properties and not on properties that are rented or used as vacation homes. The applications can be filed on-line here on the Department’s website or by mailing the paper form in the postage paid envelope included in the assessment notice. Homeowners not reassessed until 2009 or 2010 can wait until then to submit a Homestead Tax Credit application.

You can get more information by going to SDAT’s website (www.dat.state.md.us) – on its home page – in the left column – you will see “Homestead Tax Credit” – you may want to print this out .  If you want to read the full text of the bill, you can still get it off of the legislative website (www.mlis.state.md.us) – scroll down the home page until you see the section that allows you to look up bills from prior sessions.  At 2007, click on the “Bills” box and then type in SB522.  This will take you to the introduction page – click on the bill number at the top and you will get the full text of the bill.  If you would like some background information on the homestead tax program, go back to the introduction page and scroll down to the “Fiscal Policy Note”.

Homestead Application (pdf format)