New Maryland Homestead Exemption Application Process

January 22, 2008

The 2007 session of the Maryland General Assembly passed legislation that now requires Maryland homeowners to submit a one-time application in order to receive or continue their eligibility to receive the homestead tax credit. The homestead tax credit is only available to the property which is the homeowner’s principal residence. The legislation requires the State Department of Assessments and Taxation (“SDAT”) to develop procedures for submitting the Homestead Tax Credit Application, which it has recently completed. The following is a brief explanation of how existing and new homeowners can apply for the tax credit.

Beginning on December 28, 2007, SDAT will be including with its Tax Assessment Notice the application for homestead tax credit. The first mailing will be going to only one-third of Maryland existing homeowners. The remaining existing property owners will receive the homestead tax credit application over the next two years when the county in which the property is located reassesses the property tax. New property purchasers will receive their application directly from SDAT after their purchase.

The legislation requires that homeowners must be able to submit their application for homestead tax credit electronically if they choose to do so. SDAT will include on the homestead tax credit application instructions as to how to submit the application electronically. The website for submitting the application is www.dat.state.md.us, but a property owner will not be able to submit an application without first receiving the assessment and application notice from SDAT. In the SDAT assessment notice will be a unique eight digit “Access Number” that is required to file an application via the internet. Also included with the assessment notice will be a postage paid envelope for property owners that choose to submit the paper application. Any questions about the application process can be directed to a toll-free “800” number that will be included in the assessment notice and available to property owners as of December 28, 2007.

The foregoing was prepared by the Law Firm of Darby, Nalls, Smyth & Muldoon, LLC, General Counsel to Counselors Title, LLC, based on information provided by the Maryland Department of Assessments and Taxation. It is not intended as legal advice and additional questions should be directed to SDAT.