Important Tax Changes Effective January 1, 2008

MARYLAND:
Starting January 1, Maryland property owners must now apply to continue receiving the Homestead Deduction savings on their tax bill for their primary residence. This application must be filed by April 1, 2008. If you haven't already received the forms with your tax assessment notice you will soon. Click Here for the form or better yet, file online at https://sdathtc.resiusa.org/homestead/. For commonly asked questions about the application see http://www.dat.state.md.us/sdatweb/Homestead_app.htm.

MARYLAND: MONTGOMERY COUNTY SPECIFIC:
New Montgomery County Transfer Tax
For Principal Residence property in Montgomery County OVER 500,000 try the following short cut: 3105.00 (covers the first 500,000 taking into consideration the 50K exemption)
Then ADD 10.00 per 1,000. for each 1,000 over 500.

Example: 750,000 will be taxed: 3105.00 plus 2500.00 (250 x 10.00) = 5605.00 recordation tax

New Rate begins March 1.
As to Refinances over 500K they will be taxed in a consistent manner except that there will be no exemption for the 1st 50K. The rule is $6.90 for each new 1000 up to 500K, thereafter $10 per 1000; rounded to the next 500.

VIRGINIA SELLERS:
Virginia State Grantor's Tax will be increased in virtually all of the Northern Virginia jurisdictions from $1.00 per $1,000.00 to $5.00 per $1,000.00.