Understanding Your Property Tax Assessment
February 16, 2006
If you're a homeowner, you probably received your new tax assessment sometime last month and, if you're like me, you freaked out a little at the new assessed value of your home. Mine increased 150% from the assessment 3 years ago.
After my heart stopped racing, I sat down to figure out what this means in terms of my monthly tax payment on my mortgage. What a pleasant surprise! Because this is my principal residence, I automatically qualify for the Homestead Tax Credit.
Here's a fairly simple explanation: We pay property taxes to the state and to the county, and for some of us, to a municipality. Currently, the state caps the increase in your tax bill to 10% in any one year. The good news is that Prince George's County caps the increase at 3% and taxes to the county are the lion's share of your annual tax bill. (For simplicity, we'll ignore the municipalities.)
So, I've been living in my house since 1991, when taxes (and house prices) were relatively low. With the Homestead Tax Credit, my payments are way below the amount that the current assessment would indicate. I may never pay a tax bill on the full assessed value of my home.
And that's just fine with me.
If you are a landlord or you bought your home after July 1, you aren't so lucky. In future entries, I'll talk about what the new tax assessments mean to you if you just bought a home or if you own rental properties.
(c) 2006 Susan Pruden
A lifetime Maryland resident, Susan Pruden has the ideal foundation for selling and buying homes. After 8 years working in just about every facet of the mortgage industry, and several years with her own company specializing in marketing for real estate agents, Susan got her real estate license in 1994. Susan has earned several industry awards. The CENTURY 21 Quality Service Pinnacle Award is based on reviews from Susan's clients and is earned by a very small percentage of agents. She has earned that coveted recognition since 2012
Two others were awarded by the Prince George's Association of REALTORS®. The Distinguished Sales Associate of the Year Award is based on a mixture of community involvement, association involvement and real estate education and designations. The other, the Distinguished Service Award, is for "exceptional meritorious service."
Susan is involved in her local community. She was named Cheverly Volunteer of the Year in 2018, even having June 25th designated "Susan Pruden Day" in the Town of Cheverly. She is also a Commissioner on the Prince George's County Historic Preservation Commission and President of the Cheverly American Legion Auxiliary.
Susan Pruden has lived in Cheverly lived with her husband, Joseph, for almost 30 years.
