What's Happening?
Property assessments in Southern Maryland's Calvert, Charles, and St. Mary's counties have increased significantly for the 2026 tax year. According to the Maryland Department of Assessments and Taxation, the reassessments show a rise between 9.0 percent
and 12.5 percent. This affects Group 2 properties, which include one-third of the state's real estate, last evaluated in 2023. Statewide, the average increase is 12.7 percent, with residential values climbing 13.2 percent and commercial values advancing 11.0 percent. In Calvert County, total property values rose by 9.0 percent, while Charles County saw a 12.5 percent increase, and St. Mary's County experienced a 10.7 percent rise. These changes are based on evaluations of 57,543 sales within Group 2 areas over three years. The reassessment process aims to align property values with current market data for fair taxation.
Why It's Important?
The increase in property values in Southern Maryland has significant implications for local taxation and public services. Higher property assessments can lead to increased property tax revenues, which are crucial for funding local services such as schools and infrastructure. However, these increases also raise concerns about housing affordability and the financial burden on homeowners. The state and local governments have mechanisms like the Homestead Tax Credit to mitigate the impact by capping annual taxable assessment growth. The reassessment reflects a moderation in growth compared to previous cycles, indicating a more sustainable pace of property value increases. This moderation is seen as a step towards balancing household wealth growth with housing affordability, following rapid increases during the post-COVID recovery.
What's Next?
Property owners in Southern Maryland have 45 days from the notice date to appeal their assessments if they believe they are inaccurate. The appeal process involves a first-level appeal to the local assessment office, with potential reviews by the Property Tax Assessment Appeals Board and the Maryland Tax Court. Additionally, the phased implementation of increased assessed values over three years will help ease the immediate financial impact on homeowners. Local governments may adjust tax rates to balance the increased revenues from higher assessments, affecting local budgets and services. The ongoing monitoring of property market trends will be crucial in future reassessments to ensure fair and equitable taxation.
