Comments on: Is Maryland “Pick Pocketing” your Homestead Tax Credit?

By: Kevin

Kevin — Wed, 09 Jul 2008 16:57:38 +0000

This is a question rather than a comment. Is it true that the legislature is drafting legislation to eliminate the Homestead tax credit alltogether? On the Tom Marr show this morning, hosted by Pat Macdungha, Pat suggested that this is exactly what is happening. How can one find out the bills that are being offered and what the particulars are. Any thoughts or advice!

Kevin

By: Bridge1

Bridge1 — Fri, 04 Jul 2008 14:41:16 +0000

Hi Scott,

Thank you for the article on the Maryland Homestead Tax Credit. I must disagree with the comments made by Bob. My husband and I are by no means “real estate investors” or wealthy but we were able to purchase 3 rental properties in Baltimore in 2006 and 2007. Having moved to Maryland in 2001 I didn’t know anything about the Homestead Tax Credit law. When we purchased the properties and went to closing it was never mentioned so there was no intentional fraud on anyone’s behalf. In 2006 and 2007 I now know that we received the “tax” credit or I am assuming that we received the tax credit erroneously. This year we sent in the application for our primary residence only and we received our tax bills for the rental properties and they have quadrupled (plus) in cost. Your article states that there is no limit and no yearly cap on the taxes for a non-primary residence so as the market improves (hopefully soon) we will be selling. With the increase in taxes, BGE, water etc, there truly is no profit in the rentals. Thank you for the article!

By: Scott Saghirian

Scott Saghirian — Thu, 29 May 2008 13:09:13 +0000

Thanks Bob for your post and comment. The topic of the Maryland Homestead Tax Credit has caused great confusion and concern for home owners and real estate professionals alike.

I don’t know why you single out real estate agents in your comment though. My post was alerting those who legitimately receive the tax that if they don’t re-apply they may lose the tax credit. What’s wrong with that? Do you like to pay more tax than you have to?

Real estate agents are tax payers too, so we benefit when the state of Maryland brings in the tax they budget for. That way they don’t have to over tax decent hard working people. Anybody paying attention to the news can see that Maryland is becoming more and more taxing as the years go by. To say a real estate agent benefits from fraud is absolutely wrong.

Lastly, a real estate agent has no authority to give tax advice so anybody committing tax fraud does that on their own. And they are responsible for it.

Thanks again for the comment.

By: Bob Catlin

Bob Catlin — Thu, 29 May 2008 12:16:26 +0000

Real estate agents have been aware for several years that many investors have been fradulently claiming the homestead tax credit when purchasing property. When a process to enforce the law and end the fraud is established the people who benefitted from the fraud cry foul. Unbelievable!

By: Scott Saghirian

Scott Saghirian — Thu, 17 Apr 2008 14:22:32 +0000

Thanks Lee for reading my post and catching that error. The Maryland General Assembly is just so busy passing tax increases that it’s hard to keep up with what is going on. Seems like that’s what they are counting on huh….

By: correct lee

correct lee — Wed, 16 Apr 2008 18:53:27 +0000

I see that you quoted, “Another unfavorable result of the Maryland General Assembly’s Special Session was the requirement for home owners to re-apply for their Homestead Tax Credits.” This was not a result of the special session, but a bill signed into law following the 2007 regular session.

By: Dothan Real Estate, Charles Woodall

Dothan Real Estate, Charles Woodall — Mon, 21 Jan 2008 14:32:19 +0000

Good stuff Scott. You gotta watch out for the stuff hidden inside government legislation.