The Homestead Credit
To help homeowners deal with large assessment increases state law has established the Homestead Property Tax Credit. 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. Listing of homestead caps for each local government.
The Homestead Credit applies only to the principal residence of the property owner and is based on the total market value for the dwelling and land associated with the dwelling.
Technically, the Homestead Credit does not limit the market value of the property as determined by the Department of Assessments and Taxation. It is actually a credit calculated on any assessment increase exceeding 10% (or the lower cap enacted by the local governments) from one year to the next. The credit is calculated based on the 10% limit for purposes of the State property tax, and 10% or less (as determined by local governments) for purposes of local taxation. In other words, the homeowner pays no property tax on the market value increase which is above the limit.
http://www.dat.state.md.us/sdatweb/taxcredits.html
Property Tax Credit and Exemption Information
The homeowners' and renters' tax credit programs are designed to help low-income homeowners and renters by limiting the amount that they must pay in property taxes. To receive the tax credit, an application and all supporting documents must be sent to SDAT no later than September 1 of each year.
http://www.dat.state.md.us/sdatweb/taxcredits.html
Tax Credits for Historic Properties
The credit is available for owner-occupied residential property as well as income-producing property. The rehabilitation expenditure in a 24-month period must be substantial, exceeding $5,000 for owner-occupied residential property, and the greater of the adjusted basis of the structure (generally the purchase price, minus the value of the land, minus any depreciation taken) or $5,000 for all other property. The rehabilitation must conform to the Secretary of the Interior's Standards for Rehabilitation and must be certified by the Maryland Historical Trust. If the credit exceeds the taxpayer's tax liability, a refund may be claimed in the amount of the excess. Additionally, organizations exempt from taxation under Section 501(c)(3) of the Internal Revenue Code are also eligible for a refund.
