The property tax rate didn’t go up. Assessments are down. Why, then, are property tax bills up? That’s the $64,000 question nagging many homeowners this past week as they receive their Wicomico County property tax bills for 2010 – 2011.
The answer is simple, but still seems to defy logic. Homeowner bills are up because, since assessments are down, their “Homestead Tax Credit” is wiped out.
See the hypothetical tax bill below:
To see an actual tax bill for two years, click here.
In all likelihood, you received a “Homestead Tax Credit” last year. Remember, this only kicks in when your assessment rises more than 10% in one year. If your home was reassessed last year, and your assessment went down, this “Credit” is wiped out.
I know, it doesn’t make sense. It seems to defy logic. Yet, this is the way the law was written. The county didn’t cheat you; they are just taking advantage of a quirk in the law.
There is a solution (just not for this year). Demand that the new county council adopt a better “Homestead Tax Credit” scheme. Two years ago, Wicomico councilwoman Stevie Prettyman proposed reducing the credit limit from the current 10% to 5%. The only support she received was from councilman Joe Holloway. In the city of Salisbury, they have a 0% limit. Under this scheme, your assessable base never goes up after you buy your house.
NOTE: New Posts will fall below this one for the day.
Thanks for providing the example. I see in the example that although the real estate assessment was reduced from FY 2009/2010 period to FY2010/2011 by $34,480 that the real estate taxes actually increased by a whooping $521.38.
ReplyDeleteThis looks like a classical example of a Government run ponzi operation.
I say vote all of the bastards out. Now you can visually see why Congress - (State and Federal) - approval ratings are at an all time low.
The S&P Governmental official ratings in our real estate area are rated AAA CROOKS in my book!
Our forefathers started a revolutionary war over less than this action.
This is a great guide as to why the Tea Party has manifested.
ReplyDeleteYou see the culprits are our elected officials who are facilitating and helping to prop-up the State, and County entitlements - (retirement, medical) - at the expense of the citizenry. The entitlements or benefits are now consuming virtually all of the budget and there is nothing left to support the infrastructure.
This is a recipe for a disaster.
I predict civil unreast very shortly.
How many people out there know about this tax credit?
ReplyDeletewww.dat.state.md.us/sdatweb/htc.html
MD Homeowners Tax Credit
completely different from the homestead tax credit. I applied for it and saved $600 off my tax bill this year. It's not to late to apply, I think you have until Sept 30 to apply...check it out, get the word out...
The HTC was not intended to work this way -- someone needs to challenge the tax bill in court.
ReplyDeleteVote for anyone who runs for the Wicomico County Council who promises to vote to reduce the tax increase factor to zero, like Salisbury has done for its tax on homeowner-occupied residences
Wish my taxes were that low up here in the Philly Suburbs. I'm paying just under $4K a year.
ReplyDeleteVOICE has proposed time and time again to reduce the assessment limits to 0% just like Talbot County has had for the past 20 years.
ReplyDeleteWorcester County has a 5% limit but the Worcester Co. State property assessor wants the homeowner to provide documention - (either voter registration or tax returns) - to verify they are full time residents. You see in Worcester the 5% cap limit is only entitled to full time residents. So secondary homes are excluded. That is a travesty to.
So glad I live in the city.
ReplyDelete9:58
ReplyDeleteThanks for that link. I figured I will get a $302.50 credit.
10:14am I've never heard Voice asked this to be lowered. The only one I've ever heard talk about it is Stevie Prettyman and then she received no support from those on her council. Could it be because some on the council own too many rental places?
ReplyDeleteIt's not just the taxes on residential that went up. Business property taxes went up too in Wicomico County!
ReplyDeleteIt is not a quirk. It is criminal
ReplyDeleteNot sure I understand. My property was just reassessed and the assesment went down. The previous assesment, my property was substantially increased by the assesment. I was therefore given the homestead tax credit, which I was still receiving. My property tax bill went down 18% this year. It is now cheaper than my town of Fruitland tax bill. I receive many more benefits from the county than Fruitland. Can't say I have much to complain about. The tax rates mirror those of the 1960's. If we want services, I guess someone has to pay for them. What do people expect to pay for taxes, and what services do you want to live without.
ReplyDeleteanonymous 4:14, you sure do sound like Don Cathcart.
ReplyDelete(4:14 here) Sorry Joe, don't even know who you are talking about. Just sharing a different point of view. What do you think is a fair tax rate? You like to compare to Delaware, but what does Delaware really have to offer. You have to drive miles to get to a transfer station. There aren't parks like we have here. The police presence can't compare. If people don't want taxes, then they have to decide what they can live without. You can't have it both ways. It is just that simple. I would certainly rather keep my money but I am not going to jump on the VOICE bandwagon. Where are all the realtors now? How good was their county executive idea? Is it working? What real ideas have they came up with except things that will end up costing more money like the executive form of gov't. Where is the fat they talked about? You would think after all this time, they certainly could have come up with something. They may have pointed out a couple of no-brainer ideas that don't really amount to anything, but at the public hearing, Palmer gets up and starts talking about special elections (cost money, $42,000 a pop), changing the raise structure for teachers so they make more money initially (more money), renovating the civic center into a GOB (big, big bucks). How do those ideas save money? What about their original charge about all the fat. That has become the slogan for those that want to complain. "Just cut the fat". What fat? If you are talking about the school board, you may find some, but as we all know, thanks to the State, they are pretty well untouchable. If they really want to be a "voice" why not go at the taxes on the State level. Start demanding that they give our local aide (not aide really, it is ours) back. I am sure they could find fat there. Your local tax dollar is your most visible tax dollar. Again, just curious, what do people feel is a fair tax rate. Keep in mind that the State does the assesments, and then decide what you want the county to provide and what you don't.
ReplyDeleteanonymous 4:58, are you insane?
ReplyDeleteYou want to talk about Parks. Delaware has more local Parks than Salisbury or Maryland's Eastern Shore has to offer, that's for sure. They're also state resident friendly, such as Killen's Pond or Trapp Pond, just off the top of my head.
My taxes on 7.5 acres is $1,200.00 a year, HOW ABOUT YOU BUDDY?
You may be right about the Police issue. However, GUESS WHAT, WE DON'T HAVE THE CRIME!!!!!!
As for the rest of your message, I couldn't agree more.
Let me close with this. I live (around) 7 miles from Downtown Salisbury. I live close to 7 miles from Sam's Club, as do most of YOU. The difference being, I pay a whole lot less taxes than you do, yet I can walk into that Zoo for FREE, I can shop at the Mall, I can do ANYTHING you can do.
Delmar, DE. A Better Place To Live.
Okay Joe, First of all I do not disagree that your taxes are lower than mine in Wicomico County. There are lots of reasons for that. Just as Delaware has been able to not have a sales tax thanks to industry. It is possible that I am not as familiar as I thought then about the parks. I am aware of a few State Funded (I think) parks in Delaware (trap pond, and Killens) but don't know of many more. I know of numerous throughout Wicomico County that are very well attendend. The residents expect them and there better not be a whisper about closing them. As far as crime, I am pretty sure that I hear about crime in Delaware. In 2005, Sussex county had a population of 135,112. Total violent crime was 702. In 2005, Wicomico County population was 88,500 and had 199 violent crimes. (these are statistics I just pulled, and were first available). We appreciate all of those in Delaware coming to Maryland to do their shopping and enjoy our services as long as you bring your checkbook! LOL. Glad we agree on the rest of the things I mentioned.
ReplyDeleteOh, I almost forgot. I pay $1500 a year in taxes. County and City total. I can walk to a school, walmart, food lion, parks hair cut, etc. I do wish I had 7 acres though, but I don't need it. My daughter can ride her bike, and play with other children her age. To each their own.
ReplyDelete10:14, You think it is a travesty that the 5% cap is only for full time residents? If your'e financially able to have a second home, you should be able to pay your taxes.
ReplyDeleteI live in Laurel. I have a 2000 sq ft home with a full basement. I am five houses from a state park. I can walk or bike into town which is one mile away. It is biker friendly because there are sidewalks all the way out of town. As you get down towards the beach, there are biker paths from Milton all the way to Lewes and Rehoboth. I live in a wonderful development with many of the neighbors home all the time (neighborhood watch) with noone telling me that what I can and cannot plant in my yard. I have over an acre with lots of fruit trees and berries. I have a privacy fence all the way around. $950 annually. You cannot beat that. Life is the best here in Delaware.
ReplyDeleteYou know, when I posted a comment earlier (4:58), it was more about the taxes in Wicomico County, Voice and the complainers. I find it speaks for itself that noone can actually respond to that or throw out a number that they feel is a fair tax rate. I guess they just want to complain. On a side note regarding Delaware, fine , Delaware is the greatest, but I wouldn't live there. I guess that is why lots of you drive to Maryland to shop and work everyday. Start figuring how much money you spend in fuel to drive to Salsibury everyday. It sure is a pretty drive going down Rt. 13. Nothing but trash. And it is no wonder. Where do you all take your trash if you don't have trash pickup? All the way to Georgetown? Hows that for service. Everyone harps on the City of Salisbury, weeds etc. Delaware is a dump. All the small towns. Look at wonderful Selbyville.
ReplyDeleteSpeaking of trash. Take a walk along the Wicomico River and then take a walk along any river or pond in Delaware. You won't find the pollution and liter that you find in Maryland. Sorry but I work AND shop in Delaware. The outlets in Rehoboth is the place to go. No sales tax. Yeah baby.
ReplyDelete