Printed Oct. 11, 2019
(Oct. 11, 2019) Real estate contracts in Maryland reveal to buyers a “Property Tax Notice” disclosure that a buyer has a 60-day right of appeal to dispute the taxable assessed value.
The paragraph in the contract of sale states: “If any real property is transferred after Jan. 1 and before the beginning of the next taxable year to a new owner, the new owner may submit a written appeal as to a value or classification on or before 60 days after the date of the transfer.”
To clarify, “the beginning of the next taxable year” is by June 30.
So what happens if the property settles between July 1 and Dec. 31 in any given year?
The Maryland Department of Assessments and Taxation (MDAT) provides further clarification on this process on its website, https://dat.maryland.gov/realproperty, under the Assessment Appeal Process page.
The assessment appeal process allows property owners the opportunity to dispute the value determined by MDAT.
Appeals may be filed on three occasions:
• Appeal on Reassessment (upon receipt of an assessment notice, which is normally every three years);
• Petition for review; and
• Appeal Upon Purchase (upon purchase of property between Jan. 1 and June 30).
If you purchase a home between July 1 and Dec. 31, it will depend on when your property is due for reassessment.
You may file a petition for review by the first working day following Jan.1, for the two years your property is not valued at reassessment. But, if your property is due for reassessment in any given year, you will need to wait until you receive your reassessment notice, and file under the Appeal on Reassessment option.
Property owners have the right to three different options when appealing: personal hearing, phone hearing, or written appeal. Appeals made in writing eliminate the need to attend a scheduled hearing or to call in by phone (MDAT attempts to prioritize appeals made in writing).
- Lauren Bunting is a licensed Associate Broker with Bunting Realty, Inc. in Berlin.