For immediate release:
December 31, 2019
Contact:
Jason Davidson
jason.davidson2@maryland.gov
410-767-5754
Property Values Rise 8.9% According to SDAT’s 2020 Reassessment
Steady Growth for the Second Consecutive Year Nearly Matches 2018’s Increase
The overall statewide increase for “Group 2” properties was 8.9% over the past three years according to the Maryland State Department of Assessments and Taxation (SDAT). SDAT announced today its 2020 reassessment of 769,668 “Group 2” residential and commercial properties. In Maryland, there are more than 2 million property accounts which are split into three groups, each appraised once every three years.
The overall statewide increase nearly matched 2018’s 9.1% increase. This represents an average increase in value of 7.3% for all residential properties and 13.5% for all commercial properties since the last Group 2 reassessment in 2017.
The 2020 assessments for Group 2 properties were based on an evaluation of 73,106 sales that occurred within the group over the last three years. If the reassessment resulted in a property value being adjusted, any increase in value will be phased-in equally over the next three years, while any decrease in value will be fully implemented in the 2020 tax year. For the 2020 reassessment, 86.4% of Group 2 residential properties saw an increase in property value.
“All 23 counties and Baltimore City experienced an increase in residential and commercial properties for the second consecutive year, which is a good indicator the market remains strong and growth is steady,” said SDAT Director Michael Higgs. “I want to thank all of the Department’s real property assessors throughout Maryland for the hard work and dedication they have displayed this year to ensure that Maryland’s properties continue to be assessed fairly and uniformly. As part of our Tax Credit Awareness Campaign, each reassessment notice includes information about the Homeowners’ and Homestead Tax Credits, which save Marylanders more than $260 million in taxes each year.”
The Homeowners’ Tax Credit provides relief for eligible homeowners by setting a limit on the amount of property taxes that are owed based on their income. Residential property owners who complete a one- time application and meet certain eligibility requirements can also receive a Homestead Tax Credit, which limits their principal residence’s taxable assessment from increasing by more than a certain percentage each year regardless of their income level. Although statewide legislation caps the increase at no more than 10% per year, many local governments have capped property taxes at lower percentages.
Property tax assessment notices were mailed to Group 2 property owners on Friday, December 27, 2019. A map of which properties fall into Groups 1, 2, and 3 and their respective years for reassessment can be viewed on SDAT’s website here. For additional statistics and information, please visit the Department’s Statistics & Reports webpage.
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