Baltimore City Property Taxes

A property tax is imposed by municipalities and is based on the estimated value of the property.  In Maryland, each property owner is levied a property tax by the State and by their county (or city, in the case of Baltimore City).  The MD State Department of Assessments and Taxation (MD SDAT) is responsible for estimating the value of a property, and the county or city is responsible for billing and collecting the taxes levied. 

Each jurisdiction has their own tax rate which helps pay for jurisdictional expenses such as public safety, sanitation, education, transportation, health services, legislative expenses, social services, recreation, and many other services for residents.  You can see each jurisdiction’s current tax rate at the MD State Department of Assessment and Taxation web site at www.dat.state.md.us.

Assessments

The total assessed value of a property is split into two sections: the land value and the property value.  Every three years a property is re-assessed by MD SDAT.  Baltimore City is divided into three sections, so that 1/3 of the City properties are assessed each year.  Property owners receive an assessment notice in December of their assessment year which details the newly assessed value of their land and property.  Every property owner has the right to appeal the notice of assessment of his or her property within 45 days of the date of the notice.

MD SDAT uses two methods or approaches to determine the assessed value of a property.  To determine the value of the land property assessors use what they call the “Sales Approach”.  They look at the sales prices of comparable properties to determine what your land is worth. To determine the value of your dwelling, the “Cost Approach” is used.  This method calculates what it would cost to build a similar dwelling, minus any depreciation due to the age and condition of the house.  Assessors will also note the sales of similar dwellings to see if they are worth more or less than a newly constructed house.

Tax Rates

Properties in Baltimore City are levied a Baltimore City property tax and a Maryland State property tax.  
Current (July 1, 2008 to June 30, 2009) tax rates:

      Baltimore City: $2.268 for every $100 of assessed property value
      Maryland State: $0.112 for every $100 of assessed property value

There are two special Community Benefits Districts within Baltimore City.  Properties within the boundaries of these districts are levied an additional tax surcharge which covers the additional safety, sanitation and other services within these districts.  

The tax rate for the Midtown Community Benefits District (which includes parts of Bolton Hill, Charles North, Madison Park, and Mount Vernon) is $0.132 per $100 of assessed property value.  More information, including district boundaries, can be found at www.midtowncommunity.org/profile.html

The tax rate for the Charles Village Community Benefits District is $0.12 per $100 of assessed property value.  More information, including district boundaries, can be found at www.charlesvillage.org.

Appeal Process

Property owners will normally receive a Notice of Assessment every three years that shows the old market value as well as the new market value. The new value reflects the market influence and other conditions affecting the property from the time of the last assessment.

The assessment appeal process is a mechanism intended to assure an accurate property valuation. If you believe that the value placed upon your property is higher than it should be and if you can provide supporting evidence (such as sales information for properties comparable to your own), then it is in your best interest to appeal.

If you decide to appeal upon reassessment of your property, the first step is to reply to the Notice of Assessment by signing and returning the appeal form within 45 days of the date of the notice.  If you purchase a property and the property is transferred after January 1 but before July 1, you may file an appeal within 60 days of the transfer.

The Maryland State Department of Assessment and Taxation provides a step-by-step assessment appeal guide on their website at www.dat.state.md.us/sdatweb/appeal.html.