Maryland's Homestead Tax Credit deadline looms

About 1.1 million homeowners have applied for the state's Homestead Tax Credit in advance of an end-of-year deadline, said Robert Young, director of the state's Department of Assessments and Taxation.  

Homeowners who do not submit applications by Dec. 30 will lose their shot at the break for the 2014 tax year. The credit is designed to keep property taxes on homeowner-occupied residences from increasing more than 10 percent (or less, depending on the jurisdiction) each year. 

Every homeowner in the state is eligible for the credit on their primary residence although with slower growth in property values, fewer are actually getting money back, Young said. There are about 1.6 million homeowners in Maryland, he said.

"We hit our target market pretty much. We're just concerned now that everyone knows," Young said.

In 2007, the legislature passed a law establishing a five-year period for homeowners to reapply for the credit in an effort to reset the program, which was being applied to second homes and investment properties. In April, legislators extended the application window by one year, to Dec. 30, 2013.

As of this summer, 131,000 people who received some amount of homestead credit on their 2013 bill had not reapplied, Young said. About 70,000 of those have still not applied, even after a fifth mailing was sent to their residence, Young said earlier this month.

People who have already applied since 2007 do not need to resubmit applications.

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