Right, but because of the tax credit you were probably never paying the full tax on that 116k. That's the credit part.
jf On Jul 9, 2011, at 1:31 PM, jberlin <jdy...@verizon.net> wrote: > i appreciate everyone's response. However I still don't get it. It sounds as > if I am still paying the tax for last years assessment and then some. 3 years > ago my assessment was 116k. It went up to 133k. Now it is back down to 116k. > Yet I'm paying more than the previous yrs. > > On 07/08/2011 05:52 PM, Stephen J Gewirtz wrote: >> Joshua is right about how the taxes work. Under the homestead tax law, if >> your home is owned by you and is your principal residence, your effective >> assessment (what you actually pay taxes on) can go up by no more than 10% >> per year compounded. The 10% figure is used for state tax purposes (if you >> look at your bill, you will see that it shows both a City tax and a State >> tax). And the counties and Baltimore City are allowed to use the 10% figure >> or to adopt a lower figure -- Baltimore City uses a 4% figure -- for local >> tax purposes. >> >> If you look at your tax bill, it shows a State tax rate of 0.112% and a City >> tax rate of 2.268% of the assessed value of your house, and it gives the >> State and City taxes based on your assessment and based on those rates, as >> well as a total tax. Those two numbers will be a lot less than they were >> last year because of the lower assessments. Those numbers reflect what you >> would pay if there were no homestead tax credit. >> >> The next two lines on the bill are a State assessment credit and a City >> assessment credit. Those lines represent how much you are saving because of >> the homestead tax credit. And the line after that is the net tax amount, >> which is how much you have to pay if you pay in August or September (you get >> your tax reduced by one half percent if you pay in July). >> >> Let me take my own house as an example. Six years ago, my house was >> assessed a little bit more than $83K. Three years ago, it was assessed for >> a little bit more than $255K, i.e. it a little bit more than tripled. This >> year, it was assessed for a little bit more than $178K. >> >> So, six years ago, five years ago, and 4 years ago, I paid a tax on $83K of >> assessment (actually, I paid less than that. because the $83K was an >> increase over the previous assessment, and that increase was phased in over >> 3 years). Then, three years ago, I paid an actual State tax based on an >> assessment of $83K * 1.10 and a City tax based _______________________________________________ Chat mailing list Chat@charlesvillage.info http://charlesvillage.info/mailman/listinfo/chat_charlesvillage.info archive: http://www.mail-archive.com/chat@charlesvillage.info/
