Jay Fergusonjay@deepcreekvacations.com301-501-0420
Menu

Local Resident Asks Commissioners To Restore Fairness To Property Taxes

Jul. 19, 2012

The Garrett County commissioners held their bimonthly pubic meeting on Tuesday afternoon. A wide variety of topics were on the agenda, including a presentation about “restoring fairness” to real property taxes, a discussion about opting out of new sprinkler system requirement, funding for the Partners After School program, a public hearing involving the solid waste management plan, and recognition of the Greater Cumberland Committee.

Local resident/business owner Michael Bell gave a 30-minute presentation about restoring fairness to real property taxes. He noted that gas companies, such as Chevron, are exempt from paying property taxes on the Marcellus and Utica shale mineral rights/leases that they from western Maryland landowners.

Bell indicated that other property owners usually do not mind tax exemptions for churches, hospitals, and other entities that are important to their communities. But anytime something is taken off the tax base, other property owners and businesses end up paying more in taxes in order to generate much-needed revenue.


‘Like’ on Facebook!

Bell noted that the county’s revenue base is not growing and that the commissioners may have to raise taxes and/or reduce services in the future. He presented three assessment scenarios in which the county could generate, perhaps, as much as $6.7 million annually by taxing those who have purchased mineral rights/natural gas leases. He stressed that the state already has administrative and legal mechanisms in place to allow this to happen.

“I hope this stimulates discussion about this,” Bell said about his presentation.

In addition to Garrett, he noted, people in Allegany, Washington, and Frederick counties are affected by proposed Marcellus/Utica shale drilling. He suggested that an informal work group consisting of representatives from the four counties be formed to discuss the property tax issue further.

Commission chair Jim Raley thanked Bell for presenting the issue. Raley called it an “interesting idea,” and indicated it could be discussed further.

Also on Tuesday, the commissioners reviewed a new state law that requires new one- and two-family homes to have sprinkler systems. GC Department of Planning and Land Development officials were under the impression that jurisdictions could not opt out of the requirement and had to adopt the new standard in their building codes ordinance by Oct. 1.

But the county’s Permits and Inspections Division was recently notified by the Maryland Codes Administration that jurisdictions can delay that adoption.

“Local governments can opt out until the next cycle of building codes comes into play, which is in 2015,” Planning and Land Development director John Nelson told the commissioners.

More here.

Buying or selling real estate in Garrett County or Deep Creek Lake, Maryland? Call Jay Ferguson of Railey Realty for all of your real estate needs! I take great pride in referrals, and I assure you, I will take great care of your friends, family & colleagues!

877-563-5350 – toll free — 

 Search Homes & Lots for Sale at Deep Creek Lake & Garrett County, Maryland
 —

County Commissioners Hold Constant Yield Hearing, Propose $.99 Tax Rate

The Garrett County commissioners held a constant yield hearing Tuesday morning in their public meeting room at the courthouse in Oakland. Eight members of the general public attended the event.

Garrett County Department of Financial Services director Wendy Yoder explained that the constant yield rate is calculated by the Maryland Department of Assessments and Taxation for each taxing authority in the state. It represents the real property tax rate for the coming fiscal year that will generate the same amount of tax revenue that was garnered during the current year.

“As assessments increase, the constant yield tax rate decreases,” Yoder said. “When a tax authority plans to impose a real property tax rate that is higher than the constant yield tax rate, that taxing authority must advertise the tax increase and hold a public hearing.”

The commissioners are proposing to maintain the current property tax rate of $.99 per $100 of assessment in Fiscal Year 2011. At that rate, the county expects to realize a 5 percent increase, or about $2.2 million, in additional revenue in FY ’11.

If the county wanted to maintain the same amount of revenue in FY ’11 as it did in FY ’10, the property tax rate/constant yield rate would be $.9433.

Yoder noted that the county’s assessable base is expected to increase by about $211,416,000 in the coming fiscal year. Local property owner Charles Mills asked if this included new home construction. Yoder said it did not.

Mills noted, therefore, that the county probably will see more than a 5 percent increase in revenue next year. He also noted that taxes for his Deep Creek Lake property have gone up 300 percent in the last 10 years alone.

Mills acknowledged that the property probably has increased in value, but questioned the dramatic increase in taxes.

“That’s a very large percentage per year over a 10-year period,” he said. “I have no idea where the money went.”

Mills said he was having a tough time figuring out where the 30 percent increase a year in revenue is going.

Read the rest here.

If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350

More Garrett County seniors eligible for property tax break

Commissioners extend 50 percent credit

Megan Miller Cumberland Times-News

Cumberland — OAKLAND — A recent act by the Garrett County Commission could give more residents a tax credit on their county tax bills, starting this tax year.

Currently, county residents who qualify for the state Homeowners’ Property Tax Credit program, are 65 or older, and have lived in Garrett for at least 10 years, can also receive an additional credit of 25 percent of the state credit amount to apply to their county tax bill.

But the income threshold and tax bill guidelines to qualify for the state program left out a portion of Garrett’s low-income seniors who “probably suffer more than anyone else in trying to pay their taxes,” according to County Administrator Monty Pagenhardt.

Now residents who don’t meet the requirements for the state program can qualify for a county credit if they are 65 or older, have lived in Garrett for at least 10 years and have a combined gross household income of $25,000 or less. That extends a county credit to people whose incomes are low, but whose tax bills aren’t high enough to meet the state program guidelines.

“This goes over and above the state’s guidelines,” Pagenhardt said. “It’s not that much money for the county, about $8,300 in lost revenue, but the commissioners felt they wanted to do something to benefit that segment of county residents.”

Those seniors who qualify for the expanded county program will receive a 50 percent credit on their county real estate and landfill taxes, but their state taxes will not be affected.

Pagenhardt said the three commissioners agreed unanimously on the action, which makes about 32 more households eligible for county tax relief.

Wendy Yoder, director of financial services, said residents must still fill out the state application to be eligible for either the county and state credits or the new county credit program.

Applications are due by Sept. 1 for the tax bills that will come out in the summer, she said. The application forms are available online at http://www.dat.state.md.us/, at the State Department of Assessments and Taxation office in the Garrett County Courthouse, or by calling that office at (301) 334-1950 and requesting a form by mail.

For more information contact the county staff at (301) 334-8970.

If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350

4 steps to lowering your property taxes

Jay’s notes: I am happy to try and assist you with the process of lowering your taxes here in Garrett County. In fact, I plan on doing it myself this year, as I highly doubt that my house is worth what the assessed value is. To top it off, there is a house in my neighborhood that is almost the same size and condition, and they pay HALF of the taxes that I am paying! I could not believe it. So, I spoke to the folks at the assessment office and they were very friendly and helpful. Our tax year begins July 1 and runs through June 30 every year – that’s just the way Garrett County is – and thats what your assessment is based on. I was told that when I receive my new assessment (should be in January of next year) that I will be able to file an appeal. Until that point, there is not much you can do – expect gather some information about comparable properties that have sold. That’s where I can help you immediately by providing you FREE comparables (properties that have sold similar to yours) from the MLS. Give me a call or drop me an email and I would be happy to help!

High property taxes? Here are 4 steps to lowering them
Appealing a real estate assessment may save you hundreds of dollars

By Candice Cholap • Associated Press • March 20, 2010

NEW YORK — Home prices are still far below their highs just a few years ago. One bittersweet perk for homeowners is that property taxes should be lower, too.

If your home’s value has tumbled, you may be able to slash hundreds of dollars from your tax bill by appealing its assessed value. That’s because local governments generally don’t reassess homes every year, meaning the values they use to levy property taxes may be outdated.
Just how much you could save depends on your real estate market. But nationally, home prices are still about 30 percent below their peak in 2006.
The appeal process varies depending on your area, but here’s a guide on the steps you’ll need to take:

Track down the paperwork
Property taxes are assessed on a local level. Most homes are only assessed by one jurisdiction, whether it’s a town, city or county. But if your home has more than one assessment — for example, if you live in a village within a town — you need to file appeals with both jurisdictions because they operate independently.
You can start by searching for your assessor’s Web site, where you’ll find the form to file an appeal. It probably will be a page or two and ask for basic information and your home’s parcel or lot number. The latter should be listed on your mortgage or property tax bill, or you might be able to look it up on the assessor’s Web site.
Deadlines for appealing an assessment in a particular year are often in the spring, so get moving if you’re seriously considering it.
Filing fees vary; it could be free, or it may cost a flat fee of $15 or so.

Understand the process
You need to understand two important technicalities, but they’re simple to grasp and shouldn’t daunt you.
The first is your home’s assessed value. This is the basis for your property tax, and it isn’t always the same as your home’s market value.
Some local governments assess homes at a fraction of their market value. For example, if the assessment rate is 60 percent, the assessed value of a $1million home would be $600,000.

If your home’s value has tumbled, you may be able to slash hundreds of dollars from your tax bill by appealing its assessed value. That’s because local governments generally don’t reassess homes every year, meaning the values they use to levy property taxes may be outdated.
Just how much you could save depends on your real estate market. But nationally, home prices are still about 30 percent below their peak in 2006.
The appeal process varies depending on your area, but here’s a guide on the steps you’ll need to take:

Track down the paperwork
Property taxes are assessed on a local level. Most homes are only assessed by one jurisdiction, whether it’s a town, city or county. But if your home has more than one assessment — for example, if you live in a village within a town — you need to file appeals with both jurisdictions because they operate independently.
You can start by searching for your assessor’s Web site, where you’ll find the form to file an appeal. It probably will be a page or two and ask for basic information and your home’s parcel or lot number. The latter should be listed on your mortgage or property tax bill, or you might be able to look it up on the assessor’s Web site.
Deadlines for appealing an assessment in a particular year are often in the spring, so get moving if you’re seriously considering it.
Filing fees vary; it could be free, or it may cost a flat fee of $15 or so.

Understand the process
You need to understand two important technicalities, but they’re simple to grasp and shouldn’t daunt you.
The first is your home’s assessed value. This is the basis for your property tax, and it isn’t always the same as your home’s market value.
Some local governments assess homes at a fraction of their market value. For example, if the assessment rate is 60 percent, the assessed value of a $1million home would be $600,000.
The appeal form will likely ask for assessed values, so you may have to do a little math once you’ve collected market values on comparable homes.

Assessment rates can change from year to year, too, depending on the area’s funding needs.
It’s also important to know the date your area’s assessments are based on. In New Jersey, for example, homes are assessed by local governments Oct. 1 of the previous tax year. So if you’re requesting a new assessment for 2010, you’d need to research home prices from about Oct. 1, 2009.
If you’re having trouble finding either the assessment rate or date, don’t be afraid to call your assessor’s office to ask.

Collect your evidence
Most of your work will be collecting the evidence to make your case.
You can do this several ways. The first is to go to your assessor’s office, which might keep a database of sales in the area. It’s best to get actual sale prices, but listed prices should provide a good baseline if there haven’t been any recent sales in your area.
Collect data on three to five properties. Make sure they’re similar in size and style and were built around the same time. Point out why the houses are comparable to yours, and note any significant differences that could affect values, such as proximity to a busy street.
Also note if your home is near any foreclosed or vacant homes, which are known to lower property value.
It’s important to show you did your homework, but there’s no need to submit a 50-page appeal, said David Wilkes, an attorney who specializes in property taxes and assessments at Huff Wilkes & Cavallara in Tarrytown, N.Y.
Given all of the information online now, most people should be able to put together an appeal on their own. But if you’re truly daunted, you can pay for a new appraisal. Just be sure the appraiser you hire is licensed. Many real estate brokers offer appraisal services but may not have official licenses. On the high end, Wilkes said an appraisal might cost about $500.

Follow up on your appeal
Check on the status of your appeal a few weeks after you file, but don’t panic if you don’t hear back right away. Local assessor offices are often swamped with appeals and may take months to get back to you.
If your appeal is denied, you’re usually given a time window to request a hearing in tax court.
This isn’t as intimid
ating as it sounds, and you probably still won’t need a lawyer, Wilkes said. It may just be that you have to state your case more clearly to the review board.
“It’s another bite at the apple,” he said.
In the meantime, continue paying your property tax bills. If you ultimately win your case, any money you overpaid should be refunded.

If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350