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OVERVIEW OF THE REAL PROPERTY
ASSESSMENT PROCESS
November 13, 2019
Marie GreenSupervisor of AssessmentsMontgomery CountyDepartment of Assessments and Taxation
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History of the Department
•The Department of Assessments and Taxation was created in 1959 to replace the Maryland Tax Commission.
• State assumed the assessment function in 1975.
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Reasons for State Assuming Assessment Functions
•Uniformity
•Assessment Levels
•Exemptions
•Public Confidence
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Department Structure
•Real Property Division• Headquarters Staff• 24 Local Offices
•Taxpayer Services• Personal Property Appraisal• Railroad and Utility Valuation• Franchise Tax Administration• Charter and UCC• Tax Credits
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Real Property Office Locations
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Assessments Statewide
•THE ASSESSOR• Maryland has 2.3 million property accounts.• Approximately 1/3 of properties valued yearly.
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Triennial Assessments
•Three Groups• Geo 80 (Group 1) January 1, 2019• Geo 81 (Group 2) January 1, 2020• Geo 82 (Group 3) January 1, 2021
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Approaches Used to Estimate Market Value
•Cost
• Income
•Market
The assessor has latitude in determining the most appropriate method of valuation to estimate the market value of the property.
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Property Types
•Residential• Single Family• Townhouse• Condominium
•Commercial• Office• Retail• Warehouse• Apartments
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Assessing Residential Property
•Estimate of construction cost
•Estimate of land value
•Application of Market Value Indicator
• Statistical validation with sale properties
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Physical Attributes Collected for Cost Approach
• Number of Stories
• Size of Improvements
• Type of Construction
•Quality of Construction
• Type of Heat
•Other Residential Attributes
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Model and Valuation
•Models (Similar Characteristics)• Number of Stories• Quality of Construction• Style of Construction
•Market Value Indicator• Market Influence on Particular Model
• Statistical Measure• International Association of Assessing Officers (IAAO)
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Owner Notified of Assessment Value
•The Notice• Value Information
• Old and New Market Value• Value of Both Land and Buildings
• Appeal Information• Appeal Deadlines• Hearing Options
• Other Information• Worksheet Request• Sales Listings
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Assessment Phase-In
• Increases phased in over three years• 2016 assessment value equaled $100,000• 2019 assessment value equaled $130,000• Phased in assessment the next three years
2019 = $110,0002020 = $120,0002021 = $130,000
•Decreases remain the same for three years
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The Assessment Worksheet
•A property owner may obtain a copy of the worksheet for their property at any time from the local assessment office.
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Appealing Your Assessment
• FIRST STEP – Supervisor’s Level
• SECOND STEP – Property Tax Assessment Appeals Board
•THIRD STEP – Maryland Tax Court
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Assessing Commercial Property
•Marshall Valuation Cost method
• Land value estimate
• Sales comparison check
•Application of the income approach when appropriate
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Revaluation Required
•Valuation Out of Cycle• Zoning classification is changed at owner’s request• Change in use or character • Substantially completed new construction which adds at
least $100,000 in value to the property• Erroneous calculation or measurement• Rezoned property pursuant to Tax Property Article §8-226• Subdivision occurs
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Use Assessments• Agricultural use assessment
• Woodland management program
• Golf and Country Club use
• Low Income Tax Credit (IRS Section 42) property
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Other Programs
• Homestead Tax Credit
• Homeowner’s Tax Credit
• Renter’s Tax Credit
• Exemptions
• Enterprise Zone properties
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2019 County Caps(apply only to owner occupied residential property)
• Allegany 4%• Anne Arundel 2%• Baltimore City 4%• Baltimore County 4%• Calvert 10%• Caroline 5%• Carroll 5%• Cecil 4%• Charles 7%• Dorchester 5%• Frederick 5%• Garrett 5%
• Harford 5%• Howard 5%• Kent 5%• Montgomery 10%• Prince George’s 3%• Queen Anne 5%• Somerset 10%• St. Mary’s 3%• Talbot 0%• Washington 5%• Wicomico 5%• Worcester 3%
State 10%
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County Caps
•Caps do not transfer.
•With the sale of a property, the taxable assessment becomes the basis for the new buyer’s property tax calculation.
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Website Informationwww.dat.maryland.gov
• Office Listing
• Tax Rates
• Procedures
• Property Search
• Sales Search
• Property Classification (BPRUC)
• Income Questionnaires and Other Forms
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Thank you for the courtesy of allowing us to present today.
Marie GreenSupervisor of AssessmentsMontgomery CountyDepartment of Assessments and Taxation