Maryland Property Taxes To Rise

The Homestead Tax Credit in the state of Maryland is designed to prevent massive spikes in annual property tax bills following dramatic rises in housing value assessments. This offers homeowners immediate relief from the full brunt of the property tax bill, which can come as a true shock, adding hundreds of dollars to the monthly mortgage in municipalities that don't offer such a protection. But those costs don't disappear entirely. Rather, property taxes continue to rise gradually over a long while, even as housing bubbles burst and economic crises earn a superlative "global" modifier. Happy holidays, Maryland homeowners! Virtually all 700,000 of you who will be receiving new property assessments will see a property tax increase, reports the Baltimore Sun (via ABC7).

Don't feel left out, District Of and North Virginia! The Washington Post ran a cheery story on Christmas Day detailing that counties throughout the metropolitan area facing massive budget shortfalls will likely look to cut services and increase taxes. The Post writes:

As officials face the most challenging budget season in recent memory, independent analysts say the projected shortfalls next year are too steep to be solved by cost-cutting alone, leaving little alternative to increasing tax rates.

[ . . . ]

County elected officials are weighing those options as they await word of the current value of real estate in their jurisdiction. Once they receive that report from tax assessors, they can calculate the tax rate required to meet their budget needs.

Throughout the region, the once red-hot housing market has cooled so much that property values have declined virtually everywhere. With property taxes based on the value of residences, the only way county governments can take in the revenue needed for services -- after any cuts -- is to raise the rate. That might mean property owners' tax bills stay the same, but it also means a tax rate increase nonetheless.

With unemployment levels soaring in the D.C. area, rising property tax value could mean more than an added aggravation for homeowners. It could be the difference between a mortgage and a foreclosure.