If you’re a retired homeowner in a neighborhood where home prices have risen significantly, you can’t afford to pay a tax based on your property’s assessed value. That’s why the homestead tax credit, enacted in the 1970’s, puts a cap on the annual increase in the taxable value of your home.
A recent investigation by the Baltimore Sun uncovered unfairness in the current system and errors in its administration. In response, I have introduced House Bill 1081, which would impose a penalty equal to 25% of the amount of the property tax credit improperly received by an individual claiming more than one property as a principal residence. In addition, a seller would be required to tell a buyer the estimated property tax he or she would pay.