I think this is great news for you the Seller and the Buyer. There are very few people that know about this information although this plan has been in existence since 1975 when it was known as the circuit breaker plan for elderly homeowners. The reason it was called the circuit breaker plan was that it shut off the property tax bill at a certain point much like an electric circuit breaker shuts off the current when the circuit becomes overloaded.
What is it??? It is the Maryland Homeowners Property Tax Credit Program which is now available to all homeowners throughout the State of Maryland based on their total gross household income. Let me give you an example. Let's say the total household income is less than $60,000. The homeowner can apply for a tax credit on their existing property tax bill. And guess what??? It's a fairly simple process. All you need to do is fill out a one page application, send a copy of your contract and last two federal income tax returns to the State for review. Now it may take the State up to 60 days to review your information, but then they will issue the credit. They will actually prorate the credit on the existing tax bill too so you the homeowner can receive a check back for the difference of old taxes versus new taxes. Isn't this exciting?!
Here is a case in point. A woman was buying a house in Queen Anne's County and was helped by her lender to apply for the credit. She made about $30,000 a year and PRIOR to owning the property she submitted the paperwork to the State of Maryland. The tax bill was $1,756 annually, but the State of Maryland reduced her taxes to $192 annually. Yes, you read this correctly. I said $192 ANNUALLY! Of course, she will have to apply for the credit each year but she saved $1,564 on her annual property tax bill and lowered her mortgage payment by $130.00 per month! How awesome is that?!
So, if you are going to buy a home in the Stevensville MD area or surrounding towns, contact me. I can help you by directing you in applying for this reduction in your annual tax bill. On the flip side, if you are a seller, contact me for a listing appointment. You may be buying another home and may want to know if you qualify for the tax credit.
If this is of interest to you, I will connect you with the company/individuals you need to speak with to get the application and begin the process.
My name is Lisa Longest and I work at Exit Gold Realty. I specialize in real estate in the Stevensville Md and surrounding areas. If I can help you or someone you know, just give me a call at 443-786-4200 or email me at firstname.lastname@example.org