« Fed cuts rates -- again | Main | A (would-be) buyer's experience »

Homestead credit -- back to the way it was?

If your home got reassessed recently -- or if you've been reading this blog for a while -- you know that the state passed a law requiring that everyone apply for their previously automatic homestead credit, the tax break that caps property tax bill increases if you've lived in your home for at least one fiscal year.

Well, that may change.

A large swath of the state Senate has signed on to co-sponsor a bill to repeal the law. The point of the application was to flush out people getting the credit illegally -- landlords and the like -- but the "public backlash" has made politicians think twice, Tim Wheeler reports today. Sen. Edward J. Kasemeyer, the bill's sponsor, said the law was well-intentioned but is confusing and angering homeowners, Wheeler reports.

Comments

Does the state have an alternate plan to go after the Baltimore City slumlords who are wrongfully claiming the homestead credit on their vacant properties?

Apparently not, MCG. The story notes that the head of assessments "warned lawmakers that eliminating the application would substantially reduce the state's ability to weed out property owners getting the homestead tax credit on multiple properties or vacation homes."

I would think a much cheaper, less annoying way to do this is to take the tax records for every piece of property in state and compile 1 large database. Then 3-5 people could sort and look for duplicate names. This would not get every offender(some may use wife's name etc.), but would catch a large number of them. This would not bother any homeowners with extra paperwork, and the number of state employees doing the work would be smaller than the current system.

I have a simple solution for the state weeding out people falsely claiming homestead credits. Publish the complete list of data in a machine readable formate (i.e. NOT a PDF) and let the citizens of MD find the deadbeats for you. As a tax payer I have a vested interest in MD finding those deadbeats and so do a lot of other people.

I like all of the above suggestions. Why not just send out a letter to all home owners asking them to report any false primary residence filings that they know of. I know of quite a few personally. The state could then investigate every report that was filed. A lot less paperwork and I am sure they would catch a few cheaters.

Now why in the world would the Maryland Association of Realtors care so much about the homestead verfication act and want it to be repealed? Could it be that a lot of the properties incorrectly labeled as "princial residences" are owned by real estate agents who are also landlords? And is it is just a coincidence that MAR is one of Kasemeyer's largest political contributors, according to the political contributions database?

Post a comment

All comments must be approved by the site owner before they will appear. Thanks for waiting.

Note: Arguments are welcome, but please -- no calling people mean names. Jamie can take it, but she doesn't want to see personal attacks between Wonk readers.

Please enter the letter "n" in the field below:
About the blogger
Jamie Smith Hopkins, a Baltimore Sun reporter since 1999, writes about the regional economy. Her reporting on the housing market has won national and local awards. Hopkins is a Columbia native and has lived in Maryland all her life, save for 10 months spent covering schools in Ames, Iowa.
She trained to become a wonk by spending large chunks of time as a geek and an insufferable know-it-all.
Baltimore Sun articles by Jamie
Most Recent Comments
-- ADVERTISEMENT --