Everyone who owns a home in Maryland will want to read this story by Larry Carson. As you probably know, owner-occupants get a break on property taxes by dint of the homestead cap on annual increases. It's automatic -- or, rather, it was.

As Carson reports, "a little-noticed change in Maryland's property tax laws has converted this protection from an automatic benefit to one that each homeowner must apply for -- although most homeowners will have five years to file the paperwork."

The new law is intended to identify ineligible property owners who are illegally taking advantage of the caps, but critics say it is an overreaction that could put homeowners at risk of higher taxes.

Failure to apply for the tax credit, which is limited to a taxpayer's primary residence, can be costly. Maryland's Homestead Tax Credit law puts a 10 percent limit on the amount of a home's increased value that can be taxed each year, and many jurisdictions have lower ceilings.

The General Assembly passed the law after hearing about people getting the tax break for rental property.

Here's the deal: If you already own a house, you'll get a notice to apply with your next assessment letter. A third of homeowners will get letters within the next 30 days; everyone else will get them a year from now or two years from now, since the reassessment cycle is a three-year one.

The story notes that people have "until Dec. 31, 2012, to apply, except for those who buy homes after Dec. 31, who must apply within 180 days of the purchase."