Maryland Home Buyers Can Appeal Property Valuations
If you’re buying a home in Maryland and the sales price is lower than the official valuation used for taxation, you can lodge an appeal. However, it must be lodged between January 1 and June 30 so you don’t have much time. If you are in the final stages of settling, don’t delay that settlement if you do want to appeal.
Why would you want to appeal the valuation? To begin with, a lower valuation will lead to lower annual taxes. Furthermore, your valuation can only go up by ten percent each year so having a lower starting base will save you money in future years.
The process itself is fairly straightforward although it can be time consuming. The most important part is your research. You need to find two or three similar (the more, the better) properties to your own that have been sold in the previous six months. These should be in your area, not in other areas around the state, and do be sure they are comparable with your property.
Next, you need to lodge a dispute and when you do advise that you want to schedule a date for hearing. This means attending in person but that also allows you to be a part of the process. You will also be able to find out if you need more ammunition for a successful claim. Your first appeal is to the Supervisor’s Level. This is an informal presentation of your case where you can present the data gathered. They will review what you have presented and a final notice will be sent in the mail.
If this not successful you can then move on to the Maryland Property Tax Assessment Appeal Board (This is an independent board comprised of three local residents in each of the counties and Baltimore City) and finally the Maryland Tax Court. In most cases, appeals that are legitimate find favor at the first step in the process.
If you have recently purchased a home in Maryland and you feel the property value is too high, you can dispute the valuation. Be aware that just because you paid less than this value does not mean the house is worth less; you may have secured a real bargain. An appeal can be worth the effort, however, if similar homes are selling for the same price range.
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