Real Property Assessments – Revaluation of Property on Transfer After Appeal
Impact
If enacted, HB 20 would amend existing tax law regarding real property assessments in Maryland. The bill mandates that reassessments are conducted under specific conditions when a property has changed hands and its selling price exceeds the previous valuation prior to the appeal. This could lead to a more accurate representation of property values in the tax system and mitigate instances where properties are under-assessed due to successful appeal processes. Such changes may affect county revenues and property tax structures, as reassessed properties could yield higher tax returns for local governments.
Summary
House Bill 20 focuses on the revaluation of real property assessments when a property is transferred after a reduction in assessment due to an appeal. This bill aims to ensure that if a property is transferred for a price greater than its assessed value immediately before the reduction, an adjustment to its assessment must occur during the relevant assessment cycle. The primary purpose is to align property values more closely with actual market conditions, especially following successful appeals that would reduce the property’s taxable value.
Contention
Debate surrounding HB 20 could center around the implications for property owners and the local government’s ability to fund services through property taxes. Supporters might argue that the legislation provides a more fair system of taxation that reflects real market values, while opponents could raise concerns about the potential for increased tax burdens on property sellers and buyers. Furthermore, there might be guarded reactions regarding the timing of revaluation, particularly if property markets fluctuate significantly shortly after an appeal is won.