Town holds homestead tax credit at 103 percent

September 11, 1997

The Mount Airy Town Council has agreed to keep the town's homestead tax credit at 103 percent for 1997-1998.

The homestead tax credit limits the increase in assessed value RTC on which a property can be taxed. Under Mount Airy's credit, for example, a homeowner would not see a taxable increase of more than 3 percent a year or 9 percent over Maryland's three-year phased-in assessment.

For example, if a house's assessed value rises 20 percent under Maryland's three-year phased assessment, a homeowner living in a town with a 3 percent cap would be taxed only on a 9 percent increase in assessed value over the three years.

A flat real estate market in the past several years has meant very modest increases in assessed value and fewer homeowners eligible for the homestead credit, said Ronald W. Wineholt, director of the State Department of Assessments and Taxation.

The agency estimates that 381 of the 1,099 taxpayers on the Carroll County side of Mount Airy and 440 of the 1,102 taxpayers on the Frederick County side will benefit from the credit.

To be eligible for the tax credit, a house must be owner-occupied. The credit applies only to residential properties.

Carroll and Frederick County governments set the homestead tax credit at 110 percent of assessed value.

Pub Date: 9/11/97

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.