Homestead credit not culprit in higher taxes

Thousands of Marylanders are in the paradoxical situation described by Richard Thompson (Readers Respond, "Assessments down, taxes up," July 21) who says a decrease in the Homestead Tax Credit is the problem. I disagree.

The Homestead Tax Credit is not based on property assessments, as Mr. Thompson suggests. Instead, it limits yearly increases in property tax bills for owner-occupied homes. For Baltimore City and Baltimore County, the limit is 4 per cent. So when property assessments in these locales were soaring 25-to-35 per cent yearly, tax bills crept up at a modest pace, thanks to the 4 per cent limit in the Homestead Tax Credit.

What happened this year, when property assessments came down? In my case, the tax based on the new, lower assessment was higher than the heavily discounted bill I paid last year. So my tax bill went up--but only by 4 per cent.

I'm grateful that the Homestead Tax Credit saved homeowners a bundle during the housing bubble and continues to limit increases in property tax bills

Judith A. Gottlieb, Baltimore