Maryland Property Tax Assessment Values Increase in 2023

The Maryland State Department of Assessments and Taxation (SDAT) announced a 20.6% increase in real estate tax assessment values for all Group 2 properties reassessed for 2023. Notices of Assessment were mailed to property owners on December 27, 2022. Compared to their 2020 base values, residential assessments increased by 22.2%, while commercial assessments increased by an average of 15.8%.

The SDAT assesses real property on a triennial or three-year cycle, with properties valued as of January 1 of the first year in the cycle. Local municipalities comprised of counties and Baltimore City are divided into three regions or reassessment areas, with each area valued every three years. The SDAT map indicates which properties fall into Groups 1, 2, and 3 and their respective years for reassessment.

If a property’s assessed value is increased, the difference is phased-in equally over the three-year cycle. However, if below the prior cycle, the reduced assessment is fully implemented and carried through each levy year within the cycle.

If considered warranted, property owners or authorized representatives who received a 2023 reassessment should file an appeal to local SDAT offices within 45 days of the date on the notice. Successful appeals will reduce the assessed value for each of the three years within the revaluation cycle. Also, if a property was re-assessed in a prior cycle, one is still able to file a petition or what is known as an “out-of-cycle appeal.”

“The appeal process can feel daunting to property owners, especially commercial property owners,” said Bo Vicendese, Principal at Clearview Group. “However, with this aggressive increase in assessed values, it is certainly important to consider the appeal process and engage an experienced professional to ensure the process is successful.”

Let’s explore the three main stages of the appeal process:

First Level of Appeal - Supervisor's Level

The first stage of the Maryland appeal process, known as the Supervisor's Level, is relatively informal. The purpose of the Supervisor appeal is the exchange of information, which provides the opportunity for the property owner or their agent to discover as much as possible about how the SDAT assessed the property.

Second Level Appeal - Property Tax Assessment Appeal Board

Following the Supervisor’s Level hearing, petitioners will receive a Final Notice of Assessment- basically the appeal determination. If the outcome is not satisfactory, an appeal can be continued to the Property Tax Assessment Appeals Board (PTAAB). Appeals to PTAAB must be filed within 30 days of the date of the final notice you received reflecting the Supervisor’s Level hearing decision.

Third Level Appeal - Maryland Tax Court

If dissatisfied with the PTAAB appeal decision, the final option is to continue the appeal to the Maryland Tax Court (MTC) within 30 days of the date of the PTAAB Order. While proceedings at MTC are more formal than the first two appeal levels, it is still considered an informal administrative hearing.

Property owners, corporate officers, or attorneys representing ownership must be present at the MTC appeal. There are no fees for filing an appeal to the MTC, and hearings at this appeal level are de novo, meaning each level stands on its own. Most MTC property tax assessment value appeals are determined at the Tax Court unless a legal issue is involved or the decision lacks substantial supporting evidence.

‍The February 13 appeal deadline is quickly approaching, so now is your opportunity to reduce your property tax assessment. If you need help reviewing the assessment of your properties or need assistance with the appeal process, contact Bo Vicendese today!