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Your Tax Bill: How Much You Pay Now, How Much More You May Pay Net Year

It’s budget time in College Park. The City Council will be holding a Public Hearing tonight whether it should lower your tax rate to compensate some of the increase in your tax bill next year. The hearing will take place at the City Hall (4500 Knox Road, Upper floor) at 7:30pm. In case you cannot make to the hearing, please submit your comments to the Mayor and the council at mcall@collegeparkmd.gov

The tax that you pay on your house is called real property tax. It goes to a bunch of different agencies. For every $100 of your property value, you currently pay $1.79 to these agencies, including the City of College Park. The City gets 33.5 cents for the eery $100 of your property to provide services, such as refuse collection, snow plowing, (contract) police service etc. The County gets the largest share 96.9 cents and provides their services, such as public schools, County police etc. The State gets 11.2 cents, for mainly maintaining roads and highways. The MNCPPC gets 29.40 cents for the maintenance of our parks. Finally, you pay 2.6 cents and 5.4 cents respectively to WSSC and Stormater maintenance.

Thus, if you currently own a house of $300,000, your annual tax bill should be $5,370.

In the next Fiscal Year (starting in July 2016), your tax bill may go up by $252 (assuming you own a $300K house), an increase of 4.7% of what you currently pay, because of your house will be worth 4.7% more than what is currently worth.

Out of $250 additional tax that you will pay next year, the City will be getting about $45 more.

One way the City can reduce the additional tax burden next year could be by reducing City’s portion of additional tax revenue ($45). For example, the City can reduce it’s tax rate from 33.5 cents to 31.99 cents, so that you don’t pay the extra $45 of tax to the city next year.

If you want the City to reduce the tax rate, we’re also interested to know where you want us to spend less. You can see the major expenditure that has been planned in the next year’s budget here in my earlier post.

Tax

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3 Comments to “Your Tax Bill: How Much You Pay Now, How Much More You May Pay Net Year”

  1. By Robert Catlin, May 10, 2016 @ 2:11 pm

    Actually almost everyone reading this posting is eligible for the homestead tax credit and sometimes the low income homeowner’s tax credit. As a result a homeowner would likely pay about $3200 to $4000 a year in property taxes on a $300,000 property, even before the low income tax credit was considered. Your upcoming tax bill will detail the tax credit for each component of your property tax bill.

  2. By Fazlul Kabir, May 10, 2016 @ 5:31 pm

    Hi Bob, Thank for your comments. What I know (and I confirmed with our finance staff), if someone has a 300K house and it’s value next year is assessed 4.7% higher, and if that homeowner gets a homestead credit, he or she will still have to pay 4% more of City tax next year (instead of 4.7% more).

  3. By Robert Catlin, May 11, 2016 @ 11:45 am

    If you currently own a house that the state assessed at $300,000 in January 2016, it very likely had an older assessment of about $200,000 to $225,000 on it from the prior assessment in January 2013. The 4% City increase applies to the older value, say for example, $225,000. Its going to take the City about 10 years of 4% increases before you would start paying City property taxes based on a $300,000 value. By then the value of your house could be $400,000 or more.

    Mr. Groh, the city treasurer, misspoke last night when he said the Homestead credit didn’t apply to the Park & Planning tax. In about 2010, Maryland passed legislation closing the loophole that allowed it to not allow the credit. It now uses the 10% annual increase, the highest level allowed by the state.