The Maryland Department of Assessments and Taxation today announced that its 2017 reassessment of more than 750,000 residential and commercial properties marked that group’s largest increase in value since 2008. These properties, also known as “Group 2,” 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. This year’s reassessment showed that Group 2 property values increased on average by 8.2% since they were last assessed for the 2014 tax year.
The 2017 assessments for the 758,749 properties in Group 2 were based on an evaluation of 68,757 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 2017 tax year. For the 2017 reassessment, 71.4% of Group 2 residential properties saw an increase in property value. Statewide, all real property values increased by an average of 8.2%, which represents an average increase of 6.4% for all residential property and 13.6% for all commercial property.
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. Please reference table R-4, which is attached to this release, to see a breakdown of Homestead percentages by jurisdiction. 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 2 property owners on Wednesday, December 28, 2016. 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/sdatweb/maps.html. For additional statistics and information, please visit the Department’s Statistics & Reports webpage at http://dat.maryland.gov/Pages/Statistics-Reports.aspx.