Homestead Property Tax Credit – New Law

Straight from the District 47 “Annapolis Report” – legislation that affects homeowners and landlords:

Homestead Property Tax Credit: Marylanders who wish to receive a tax credit for their owner-occupied residential property must apply to the State Department of Assessments and Taxation by December 31, 2012. The new law establishes a 25% repayment penalty for willful misrepresentation and a lien on the property until payment or foreclosure. (Bold is mine and, as a friend pointed out, neither the Homestead Tax Credit nor the requirement to apply for it is new. Only the penalty is new.)

So first, check to see if your application for the Homestead Tax Credit is on file for your principal residence. Look at the bottom of the page and look for the status, which looks like the image above. If you qualify for the homestead tax credit and it doesn’t show an APPROVED status, then follow this link for information on how to apply.

If you have an investment property and you’ve been secretly enjoying the tax credit, even though it is not your principal residence, then you may want to consider correcting that status. The state is really cracking down on these violations. Don’t set yourself up for a fine or worse.

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