Many Marylanders will receive their real property tax assessment in December. If there are unique factors that make your tax assessment seem incorrect, such as owning a waterfront property, it may be wise to seek representation now for a reduction in your tax liability. Our attorneys are particularly well-positioned to handle related litigation, having the singular experience of representing Maryland taxpayers and taxing authorities in complex ad valorem (based on value) assessment proceedings.
Overview of Property Tax Appeals
Each December, approximately one-third of all Maryland property owners receive an assessment notice from the Maryland State Department of Assessments and Taxation (SDAT). The notice discloses SDAT’s valuation of the owner’s property and the associated tax liability for the 2025/26, 2026/27, and 2028/29 tax years – SDAT assesses real property on a three-year rolling basis.
While SDAT’s valuation charge is well-settled, real estate is inherently unique, and SDAT may not appreciate or have access to all facts bearing on value when it renders an assessment. Fortunately, an assessment is appealable provided action is taken within 45 days of the new assessment notice or, for property not reassessed in late December 2024, no later than the first working day of January 2025. The appeal process includes three levels of administrative review followed by judicial review, as necessary.
If the owner presents a successful appeal, that success translates to a reduction in the owner’s tax liability for the years in question. The inverse is true if the taxing authority succeeds on appeal.
Acute Impact on Waterfront Properties
It should come as no surprise that waterfront property often sees higher assessments than property without sea views. That tranquil setting may obscure the risk of property ownership, particularly in the assessment context. Waterfront assessments often do not account for the true expense and exposure of owning property in flood-prone areas. In fact, largely due to market and policy forces, waterfront property values remain substantially higher than overall prices, leading to higher tax liabilities. At the same time, with storms striking more frequently than ever before, carrying costs for waterfront properties have increased exponentially. Owners face escalating insurance premiums, unanticipated post-storm expenses, and other economic hardships associated with owning property in view of the water. This paradigm shift, with the cost of owning waterfront property potentially outweighing the benefit, presents an opportunity for owners to seek adjustments to their property tax assessments.
What can I do?
Our attorneys have handled some of the most difficult tax assessment appeals on behalf of Maryland taxpayers and taxing authorities. We also have expertise in complex valuation matters in the eminent domain, condemnation, and real property litigation spaces. If you need assistance with any property valuation issue, including pursuing a reduction in private tax liability or protecting the municipal tax base, we can help. Contact Harris Eisenstein or TJ Creevy with any questions or concerns.