Published: January 16, 2008 09:19 am         

Homestead credit a potential answer to Garrett County housing tax hike

OAKLAND - Garrett County officials are urging residents affected by the most recent property assessments to apply for the Homestead Property Tax Credit.

The credit is a state law restricting homeowners' property assessments from increasing more than 10 percent each year. The taxable assessment increase in Garrett County is limited to 5 percent.

Due to a new state law passed last year, homeowners have to file a one-time certificate of eligibility in order to obtain the tax credit on their primary place of residence.

If homeowners fail to claim the credit, they could be subjected to the true increased assessment - which averaged 29 percent since the area's last assessment in 2004. The affected areas include Oakland, Mountain Lake Park, Loch Lynn Heights and Deep Creek Lake south of the Glendale Bridge.

"The real estate market is not real strong by any means," said County Commissioner Denny Glotfelty during Tuesday's meeting. "How property values are down and assessments are up, I haven't figured that out."

Commissioner Ernie Gregg said he's heard from two residents whose properties were assessed 100 percent higher than last time.

"It's good that we have that cap," Gregg said. "If it wasn't for that cap, we'd have a lot of people here with tar and feathers."

The commissioners can avoid punishment - and homeowners can avoid paying taxes on the 29 percent increase - if residents complete and return the tax credit form that came last month in the mail with their assessment notices.

Residents statewide can log on to the Maryland State Department of Assessments and Taxation Web site at www.dat.state.md.us and submit the information electronically. Each property owner's application form that came with the assessment notice included an eight-digit security access number.

An application form also can be printed from the department's Web site.

Those with property not assessed until 2009 or 2010 can wait until then to claim the tax credit. But the need for such a measure, state and county officials said, is to curtail abuse of a system in which property owners were receiving the tax credit for vacation homes and rental properties.

The new law, said Steve Kimble, assistant supervisor of assessments for Garrett County, will use information from a driver's license, state income tax forms and Social Security number.

Responding to Glotfelty's comments after the meeting, Kimble said property assessments are based on the amount for which a house can sell. In a neighborhood that might not have seen much turnover in recent years, a single sale could cause neighboring property assessments to jump considerably, he said.

A second credit, known as the Homeowners Property Tax Credit Program, offers lower-income property owners a credit on a portion of their assessments based on their gross income level.

Residents must file by Sept. 1 to receive the credit. To be eligible, a homeowner must not have a net worth exceeding $200,000 and the combined household annual income can't exceed $60,000.

For more information, call the Garrett County tax office at (301) 334-1965.

Contact Kevin Spradlin at kspradlin@times-news.com.