Maryland Department of Assessments and Taxation

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 About the Department of Assessments and Taxation


The Maryland​​​ Department of Assessments and Taxation (also known as the State Department of Assessments and Taxation, or SDAT) is a customer-focused agency that works to ensure property is accurately​ assessed, business records are appropriately maintained, and necessary tax-related information is conveyed to state agencies and local jurisdictions. The Department's responsibilities can generally be split into three main areas: Business Services, Real Property Valuation and Property Tax Credits.

The Business Services Division is comprised of the Business Charter Unit and Business Property Valuation Unit. The Business Charter Unit helps create businesses and ensures that the documents they file meet the requirements of Maryland law. The Business Property Valuation Unit values items that businesses own, lease, or use in order to operate and are subject to taxation by local jurisdictions.

The Real Property Valuation (Assessments) Division values more than two million residential and commercial property accounts throughout the state. Those values are then certified to local governments, which use the assessments to collect property ​taxes. The Department is committed to ensuring uniform and accurate assessments statewide, as well as providing a fair and prompt appeal process.

The Taxation Division includes the Property Tax Credit Unit and the State Tax Sale Ombudsman's Office. The Property Tax Credit Unit helps administer the Maryland Property Tax Credit Programs, including the Homeowners'​ Tax Credit, the Renters'​ Tax Credit, and the Homestead Tax Credit.​ The Office of the Maryland State Tax Sale Ombudsman helps homeowners understand the tax sale process and navigate the tax sale system, connecting them to housing and financial counseling, legal services, and other benefits programs.

​Business Services Division​

The Business Services Division is comprised of the Business Charter Unit and Business Property Valuation Unit.

The Business Corporate Charter/Charter Legal Review Unit is custodian of documents relating to the organization and ownership of many types of business entities that are required to file documents with the State. These documents include charters for Maryland corporations and qualifications and registrations for foreign corporations. The unit is also the custodian of security interest (UCC) filings.

Business Charter Legal processes ground rent redemptions. Under this program homeowners can redeem the ground rents on their residencies where the ground rent holder can not be located. The unit also implemented a ground rent registration system where ground rent lease holders can register their ground rents with the State.

Business Property Valuation oversees the annual reassessment of operating property of railroads and public utilities and personal property of businesses. Property tax reports are filed with, and reviewed by, the Division annually. Thereafter, the values are certified to the subdivisions so that they may issue tax bills.

The Division administers franchise taxes applicable to the gross receipts of public service corporations.

This Division also administers the Enterprise Zone Property Tax Credit Program designed to promote economic development. It reimburses local subdivisions for one-half of the property tax credits granted to businesses which relocate or expand in certain designated geographic areas within the State.

Real Property Valuation​​​ ​​​​(Assessments) Division

Real property is reassessed on a three-year cycle by reviewing one-third of all property in Maryland every year. The review includes an exterior physical inspection of the property. The Real Property Valuation Division participates in all appeals court proceedings where assessment questions are involved.

Assessments are certified by the Department to local governments where they are converted into property tax bills by applying the appropriate property tax rates. An assessment is based on an appraisal of the fair market value of the property. An appraisal is an estimate of value. There are three accepted approaches to market value: (1) the sales approach; (2) the cost approach; (3) the income approach. While differing in the method of calculation each approach is designed to indicate the property’s fair market value. The property tax is primarily a local government revenue. Counties and cities depend on the property tax and a portion of the income tax to make up their budgets.

For questions regarding Real Property Valuation and a specific address, contact your Local Assessment Office.

Taxation Division

The Taxation Division includes the Property Tax Credit Unit and the State Tax Sale Ombudsman's Office.

The Property Tax Credit Unit administers three residential Maryland Property Tax Credit Programs - the Homeowners'​ Tax Credit, the Renters'​ Tax Credit, and the Homestead Tax Credit. Homeowners' and Renters' Property Tax Credit Programs provide more than $53 million in State-funded property tax credits to homeowners and renters who qualify based on an income test. The Homeowners' Tax Credit is available to all homeowners in Maryland, regardless of age, while the Renters' Tax Credit applies to renters aged 60 or over; the permanently disabled; and renters who are under age 60, with dependent children.

The Homestead Property Tax Credit was established to help homeowners deal with large assessment increases on their principal residence. Every county and municipality in Maryland is required to limit taxable assessment increases to 10% or less each year via the Homestead Credit program. To prevent improper granting of this credit on rented or multiple properties of a single owner, a law enacted in 2007 requires all homeowners to submit a one-time application to establish eligibility for the credit. The application form was included in the assessment notice mailed to one-third of the homeowners at the end of December for the three years beginning in 2007 and in a series of three special mailings to existing credit recipients not yet filing an application. The application is also mailed to new purchasers of residential property.

The Office of the Maryland State Tax Sale Ombudsman helps homeowners understand the tax sale process and navigate the tax sale system, connecting them to housing and financial counseling, legal services, and other benefits programs. An Annual Tax Sale Survey of the counties is conducted by the Office. Annually, the Office submits to the General Assembly an Annual Tax Sale Report, which summarizes and analyzes Survey results, as well as activities of the Office that year.

The Office runs the Homeowner Protection Program, which diverts vulnerable homeowners from the private tax lien sale process into an alternative program with the intent of minimizing tax collection costs to owners, assisting owners to pay their taxes, and allowing owners to remain in their homes. This added level of assistance to homeowners includes a loan program and repayment plan administered by State Tax Sale Ombudsman.

Shared Services Division​

The Shared Services Division supports the operations of the other divisions, and is comprised of the Customer Experience Office, the Customer Service Contact Center, the Office of Information Technology, and Scanning and Printing.

The Office of Information Technology (OIT) is responsible for producing and maintaining all of the Department's computer information systems. This includes responsibility for 25 local area networks, over 600 personal computers, an interactive telephone data system, and mainframe and LAN databases at 26 sites around the State. OIT also manages data flow to and from local governments and other State agencies.

Accessibility: This website has been designed with consideration to web assistive technology in compliance with the Code of Maryland Regulations (COMAR) 17.06.02.01-12. Some of the links in this website will cause new browser windows to open. Accessibility resources available through the Maryland Technology Assistance Program​.​
<​​​​http://mdod.maryland.gov/mdtap/Pages/MDTAP-Home.aspx​>​

Anti-Virus Security Statement: It is the policy of the Office of Information Technology​ of the Department of Assessments and Taxation to utilize the highest level of anti-virus protection possible to provide a secure environment for the exchange of information and ideas. Although no protection is absolutely foolproof, the Department employs state of the art software to protect its networks from infection by viruses from Internet downloads or incoming e-mails. This protection is also designed to prevent the passing through of viruses from the Department’s e-mail system to outside recipients. Our detection software is updated on a daily basis with the latest virus signature files. Attachments with specific extensions are prohibited from being received into our e-mail system. The Department also receives security alerts from the State security office. These alerts are immediately reviewed and the appropriate actions are initiated.
Maryland Department of Assessments and Taxation
700 E. Pratt St. Suite 2700
Baltimore, MD 21202-6377