Tax Law Blog | IRS Tax Attorneys

GA Senator Chip Rogers says he wants changes to property tax law in light of the recent housing market downturn.

People who buy foreclosed properties at bargain values are being taxed at much higher county assessments, says Republican State Senator Chip Rogers.

So he’s proposing that counties can only tax on the price of a home.

“If you buy a home this year and you don’t do anything,” says Rogers. “Whatever you paid for it, should be your assessment for that year.”

Rogers says he also wants assessment notices sent out every year, and allow for assessment appeals year- round.

He admits that the measure could backfire in a booming market, but he says his ultimate goal remains eliminating all property taxes.

Even if a homeowner’s property assessment magically soars in Prince George’s County amid a severe real estate downturn, the county won’t be able to reap the benefits next year because of a complex system of tax laws.

The County Council is poised to pass legislation regarding the Homestead Property Tax Credit, a statewide tax limit designed to protect homeowners from large jumps in their property assessments year-to-year. It works like this: Say you bought a house for $100,000, and in your next assessment, the valuation jumps to $120,000–a difference of 20 percent. Because of the tax credit, localities in Maryland can only tax you on up to 10 percent of that increase in value. In this example, that would mean being taxed on up to $110,000.

Each locality gets to set its own Homestead Property Tax rate every year, ranging between 0 and 10 percent. Here’s a list of all the current rates.

More: Pr. George’s Property Tax Cap to be Lower Next Year