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Md. changes real estate tax formula

February 17, 2001

Md. changes real estate tax formula



By SCOTT BUTKI / Staff Writer


A new Maryland law has changed the way the real estate tax rate will be calculated for the upcoming fiscal year.

In the past, real estate taxes were assessed on 40 percent of the fair market value of the property. Now, the taxes will be assessed on 100 percent of the fair market value, but at a lower rate.

The business property tax rate remains at $1.73 per $100 of the fair market value, because that tax was already assessed at 100 percent of the fair market value.

Taxpayers will find the new rates on their real estate property tax bills issued July 1, said county Treasurer Todd L. Hershey. The changes became effective Oct. 1, 2000.

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"Tax bills won't go up and revenues won't go down because of this change," Hershey said.

The change also should not affect the amount of money paid by property owners because the City of Hagerstown, Washington County and state real estate tax rates have been lowered.

Hagerstown Finance Director Al Martin said the city's tax rate is now 69.2 cents per $100 of assessed value, down from $1.73 per $100 of assessed value.

The county's rate has changed to 94.8 cents per $100 of assessed value, Hershey said. The rate was $2.37 cents per $100 of assessed value.

For the state, the rate has changed to 8.4 cents per $100 of assessed value, down from 21 cents per $100 of assessed value.

Towns in Washington County have also been forced to change their rates:

HEIGHT="6" ALT="* "> Boonsboro, from 60 cents per $100 of assessed value to 24 cents per $100 of assessed value.

HEIGHT="6" ALT="* "> Clear Spring, from 50 cents to 20 cents.

HEIGHT="6" ALT="* "> Funkstown, from 55 cents to 22 cents.

HEIGHT="6" ALT="* "> Hancock, from 91 cents to 36 cents.

HEIGHT="6" ALT="* "> Keedysville, from 45 cents to 18 cents.

HEIGHT="6" ALT="* "> Sharpsburg, from 44 cents to 17.6 cents.

HEIGHT="6" ALT="* "> Smithsburg, from 70 cents to 28 cents.

HEIGHT="6" ALT="* "> Williamsport, from $1 to 40 cents.

The change in the assessment valuation formula will enable taxpayers to easily understand valuations placed on their property by the State Department of Assessments and Taxation, Hershey said.

Staff writer Marlo Barnhart contributed to this story.

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