Thursday, November 22, 2012

FILE FOR THE HOMESTEAD TAX CREDIT BEFORE 12/31/12


COMMONLY ASKED QUESTIONS ON
THE HOMESTEAD TAX CREDIT APPLICATION 

Learn more about the Homestead Tax Credit program at www.dat.state.md.us/sdatweb/homestead.html

1.  What is the law that requires homeowners to apply for the Homestead Tax Credit?  
Legislation enacted by the 2007 session of the General Assembly requires homeowners to submit a one-time application in order to continue their eligibility for the homestead tax credit.  The homestead credit limits the amount of assessment increase on which a homeowner will pay property taxes in that tax year on the one property actually used as the owner’s principal residence.  
See Section 9-105 Tax-Property Article of the Maryland Annotated Code.

2.  Why is the Homestead Eligibility Application needed?
The reason why the application process was needed is because some property owners were improperly receiving the credit on vacation homes and rented properties.  County and municipal governments were losing tax revenues needed to provide important services to their residents. 

 3.  Why should I want to submit the application?
Because of assessment increases and because of the low assessment caps adopted by the county governments, many homeowners in the State have been receiving substantial homestead credits each year on their property tax bills. View a listing of homestead caps for each local government

 4. Were property owners notified about the Homestead application requirements? 
The Department of Assessments and Taxation included the application in the Assessment Notices mailed to property owners during the regular reassessment cycle from December 2007 through December 2011. New purchasers of properties will be mailed a homestead application by the Department.5.  How do I file the Homestead Eligibility Application? 
a.  File electronically: Request an application from the Department by sending an email to Hcredit@dat.state.md.us
The application mailed out to you will contain an Access Number so you may file electronically on our site athttps://sdathtc.resiusa.org/homesteadb.   Mail the application: You may mail in the completed paper application the Department sends you. You may also print and mail the completed PDF copy of the application available on our web site.  Applications must be postmarked by December 31, 2012.

c.  Fax the application: You may also fax in the completed paper application to the Department at 410-225-9344. 

          Emailed applications will not be accepted.
Mail completed application to:
Department of Assessments and Taxation
Homestead Tax Credit Division
301 West Preston Street, 8th Floor
Baltimore MD 21201 
Contact the Homestead Division
Telephone: 410-767-2165
1-866-650-8783
Fax: 410-225-9344
Email: homestead@dat.state.md.us
Request an applicationHcredit@dat.state.md.us

 You can find out if you have already filed an application by looking up your property in our Real Property database
 6.  What is the Department of Assessments and Taxation doing to insure the confidentiality of my Social Security number that I am required to provide on the homestead tax credit application form?
The Department has a 30-year history of receiving and absolutely protecting confidential Social Security numbers and income tax return information received from hundreds of thousands of homeowners applying for the Homeowners’ Tax Credit Program based on income.  These same protections and additional protections will be provided to protect the confidentiality of Social Security numbers supplied on homestead tax credit applications.  For those homeowners who submit applications electronically, the Department’s website is an “encrypted” protected site that uses the unique 8-digit security "Access Number” and scrambles the individual Social Security numbers.  For those homeowners who submit a paper application, there is a series of administrative procedures and protections under federal law that the Department follows in accordance with the strict non-disclosure and safeguard activities required of the agency because of our receipt of federal income tax information.

Revised: November 2012

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