For immediate release:
December 28, 2017
Contact:
Jason Davidson
jason.davidson2@maryland.gov
410-767-5754
SDAT’s 2018 Reassessment Reflects Growing Real Estate Market
“Group 3” Assessments Increased by 7.7% Statewide
The Maryland State Department of Assessments and Taxation (SDAT) today announced its 2018 reassessment of 751,677 residential and commercial properties. These properties, also known as “Group 3,” are reassessed by the Department every three years and account for one-third of the more than two million real property accounts in the state. The 2018 reassessment showed that Group 3 property values increased on average by 7.7% since they were last assessed for the 2015 tax year. This represents an average increase of 5.8% for all residential property and 12.7% for all commercial property.
The 2018 assessments for Group 3 properties were based on an evaluation of 63,322 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 2018 tax year. For the 2018 reassessment, 68.9% of Group 3 residential properties saw an increase in property value.
Residential property owners who apply and meet certain qualifications 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. Although statewide legislation caps the increase at no more than 10% per year, many local governments have established property tax caps at smaller percentages. In prior years, counties were required to set their Homestead credit percentages by November, but legislation passed earlier this year moved that deadline 4 months back to March. To see a breakdown of Homestead percentages at this time, you may reference table R-4, which is attached to this release. For additional information on the Homestead Tax Credit generally, please visit http://dat.maryland.gov/realproperty/Pages/Maryland-Homestead-Tax-Credit.aspx.
Property tax assessment notices will be mailed out to Group 3 property owners on Thursday, December 28, 2017. A map of which properties fall into Groups 1, 2, and 3 and their respective years for reassessment can be viewed at http://dat.maryland.gov/realproperty/Pages/Maryland-Assessment-Offices.aspx. For additional statistics and information, please visit the Department’s Statistics & Reports webpage at http://dat.maryland.gov/Pages/Statistics-Reports.aspx.
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