Deadline Extended for Homeowners Property Tax Credit

[Howard Hartman]

City of Gaithersburg Press Release
For Immediate Release          August 12, 2010

Deadline Extended for Homeowners Property Tax Credit

Gaithersburg, MD – August 12, 2010. The State of Maryland has extended the deadline to apply for a Homeowner’s Property Tax Credit to November 1, 2010.

The Maryland Homeowners Property Tax Credit Program credits a homeowner’s property tax bill if the property taxes exceed a fixed percentage of the household income. Residents of Gaithersburg who qualify for this Maryland property tax credit are also eligible to receive an additional City property tax credit. The Gaithersburg program allows for a 50% supplement of the State credit.

Qualification guidelines are set by the State of Maryland. A homeowner may be eligible for a property tax credit if:

• Annual household income does not exceed $60,000;
  
  
• The homeowner owns or has legal interest in the property;
  
  
• The homeowner has lived in the home for at least six months or will live in the home for the next six to twelve months;
  
  
• The combined net worth of everyone in the household does not exceed $200,000 (not including the value of the principal residence or the cash value of any qualified retirement savings or individual retirement accounts).

Note that only the first $300,000 of the home’s assessed value counts towards the property tax credit. The total amount of the tax credit cannot exceed the amount of property tax owed.

Application for this credit must be filed with the State of Maryland annually, so even if a homeowner has applied for a credit in previous years, it must be done again. The deadline to apply has been extended to November 1, 2010.

To apply for the credit, call the Maryland State Department of Assessments and Taxation (SDAT) at 1-800-944-7403 or download the form and instructions from the agency’s website below. Questions may also be directed to the City of Gaithersburg Department of Finance and Administration at 301-258-6320.

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