Maria received her SDAT reassessment notice showing her home's value increased from $300,000 to $390,000. Under Maryland's phased-in assessment increase system, how will this $90,000 increase be applied for tax purposes?
Correct Answer
B) The $90,000 increase is phased in equally over three years, adding $30,000 to the taxable assessment each year
Maryland law requires that increases in assessed value be phased in over the three-year reassessment cycle. The total increase is divided equally into three annual increments. In Maria's case, the $90,000 increase ($390,000 − $300,000) is divided by 3, adding $30,000 to the taxable base each year for three years. This phase-in protects property owners from sudden large tax increases.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
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