The Maryland State Department of Assessments and Taxation reviews and updates real property assessments on a three year cycle, covering a third of the homes in the state in each year.  Anne Arundel County is split into three sections, and most recently, “Assessment Area One” properties were reassessed including the Historic District of Annapolis and surrounding areas, such as Annapolis Neck, Edgewater, Riva, and the Broadneck peninsula.

Many friends and clients were upset when their tax assessments rose while sales prices had declined.  Most complained and then simply paid their taxes.  A few decided to take action.  Some asked me for comparable sales data, advice on how to determine the market value for their homes, and tips on how to convey that information to others.

According to the State Department of Assessment and Taxation’s web page The Assessment Appeal Process :

Property owners sometimes feel that the department’s estimate of their property value is wrong. The assessment appeal process is available to allow property owners the opportunity to dispute the value determined by the department. Property values rise and fall to reflect the market. A property owner should file an appeal when they believe that their property is not valued at its current market value.

Appeals may be filed on three occasions:

1. upon receipt of an assessment notice;
2. by a petition for review; and
3. upon purchase of property between January 1 and June 30.

While it may seem like a hopeless effort to dispute your tax assessment, it can be done!   After all, the mission of the department is:

To promote fairness in taxation for Maryland property owners by uniformly appraising all taxable property at market value, certifying property values to local governments, and offering programs of property tax relief and business services in a manner that is courteous and convenient.

Some neighbors in Murray Hill just told me they succeeded in appealing, using neighborhood sales data that I had provided to them.  They said they were able to shave about $40,000 off of their assessment, which will save them a bundle.  For 2009-2010, real property taxes charged by Annapolis City are 0.53/$100, by Anne Arundel County are 0.523/$100, and by the State of Maryland are 0.112/$100, for a total of 1.165%.

Some long-term real estate investors make a practice of disputing every assessment that they get, because the tax increases really add up over the years.

You can dispute it at any time – you don’t need to wait until your next assessment comes out.  For specific details on your Anne Arundel County property taxes, visit Anne Arundel County Real Estate & Personal Property Taxes.

And if you’re in West Anne Arundel County, keep your eyes open for a new assessment notice in late December.

I am curious, do you think your assessment is too high?  Have you tried disputing it?

For more details, visit A Homeowners Guide to Property Taxes and Assessments

Call me today for all your Annapolis real estate needs.

Carlyn Lowery, Associate Broker, eXp Realty, Annapolis Real Estate, Anne Arundel County, Maryland, 443-569-3977 or 888-860-7369 x146