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Does the Homestead Tax Credit convey with the home?
If a house is on the market and the current owners do not get the homestead tax credit, is there a way to get it somehow? A house I am looking at in MD has a 2007 assessment of $318k and they pay $4500 per year, no homestead tax credit. Another house with a similar floor plan is assessed at $321k and they pay $3100 with the tax credit. They have phase-in assessments for 2008 of $370k and $380k respectively. I am wondering if the new owner of the former house will have to pay the full amount of the taxes whereas the new owner of the latter will pay only 10% more than this year's $3100. Is there a way to lower the tax bill on the former? It seems ridiculous that one new owner may have to pay so much more, especially since the selling prices of these two houses will be closer to the 2007 assessment (my guess is ~$325k).
I've got that assessment and the county tax bills too, but I see some houses with practically the same assessment with totally different total payments. Some get $1000+ credit on a $4500 bill, some $500, some no $. Since taxes make a huge difference in what we pay each month, the actual amount our bill will be is very important. We can afford more house if the bill is lower, and since we are looking at the lowest priced houses in the area, any little more more house we can afford gives us more choice.
When you buy a house, if you qualify for the tax credit, do you just pay 10% more than the previous owner if they have the tax credit?
I am just so confused as to why some people get over $1000 off their tax bill, others only $500, when their actual taxes are based on the same assessment. I want to know if I should look to get a house where the owner pays less this year so I will pay less (then others) next year.
I hope I am explaining this clearly...
TIA!
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