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.