August 28, 2019
Thank you to everyone who joined me in July for the second workshop in
a series of events to bring county resources to District 3. During the evening event, s
taff members from the County's Office of Finance presented information about tax credits for homeowners and renters.
What is the Homestead Credit?
State law established the Homestead Property Tax Credit to help homeowners deal with large assessment increases on their principal residence. The Homestead Credit limits the increase in taxable assessments each year to a fixed percentage. Every county and municipality in Maryland is required to limit taxable assessment increases to 10% or less each year. In the 1990s, Prince George's County voters approved more restrictive limits: the Consumer Price Index (CPI) or 5%, whichever is lower. This year's limit in Prince George's County is 3%.
All Maryland Homeowners are eligible for the Homestead Tax Credit on their primary residence. You only need to apply for the Homestead Tax Credit one time. If you are not sure if you are receiving the Homestead Tax Credit, be sure to check by looking up your property on the Real Property Database online.
What is the Homeowners' Property Tax Credit Program?
The State of Maryland has developed a program which allows credits against the homeowner's property tax bill if the property taxes exceed a fixed percentage of the person's gross income. In other words, it sets a limit on the amount of property taxes any homeowner must pay based upon his or her income.
Who can apply for the Homeowner's Property Tax Credit Program?
Homeowners of all ages are eligible based on gross household income.
Net Worth cannot exceed $200,000 (excludes the value of principal residence, cash value of IRAs or qualified retirement savings plans).
Gross income of $60,000 or less.
If you are age 70 and over and have not applied for this tax credit before, you may be eligible to receive a retroactive tax credit for the previous three years.
The application deadline for the Homeowners' Tax Credit Program is Monday, September 3. (This is an extension over the normal September 1 deadline due to Labor Day weekend.) Applicants must apply every year.
What is the Renters' Credit Program?
Similar to the Homeowners' Tax Credit Program, the State of Maryland has developed a program which provides relief to eligible renters whose rent payments are high relative to their total income. The majority of recipients are those age 60 or over, but the program is also available to those who are 100% disabled or those under 60 with at least one dependent child.
Learn more about the Renters' Tax Credit Program and apply online or download the form here.
In 2015, I was proud to propose legislation which the Council passed to provide a Prince George's County Renters' Tax Credit to anyone eligible for the State Renters' Tax Credit. If the renter receives the State credit, the County sends a supplemental credit equal to half of the amount paid by the State. No additional application is required to receive the Prince George's County Renters' Tax Credit.
|Click this image to view the full presentation from the Resource Workshop.
for an overview of Maryland tax credit programs.
Please note, these tax credit programs are all run and managed by the State of Maryland.
Please contact the Maryland Department of Taxation and Assessments for more information by calling 1-800-944-7403 (inside of Maryland) or 410-767-4433.
You can contact the Local Assessment Office at: 14735 Main Street, Suite 3548, Upper Marlboro, MD 20772. Phone: 301-952-2500 Email: firstname.lastname@example.org.
As always, feel free to reach out to a member of my District 3 team or me if we can help you in any way. #onlytogether
Together Strengthening Our Community,