Maryland property tax assessment error could cost $250M

Maryland Property Tax Assessment Glitch May Cause $250M Shortfall
By Staff Writer
February 23, 2024

Maryland legislators are racing to address an administrative error that left roughly 107,000 property owners without their reassessment notices, a misstep that could potentially cost local governments $250 million over three years if unresolved.

Each year, Maryland reassesses property values for one-third of all properties in each county, with the State Department of Assessments and Taxation (SDAT) required to send notifications by January 30. However, this year’s notices were delayed due to a mailing error, impacting property owners’ ability to contest their new assessments within the required timeline, said Michael Higgs, SDAT director.

Legislative Solutions Underway
In response to the oversight, State Senator Guy Guzzone, chair of the Senate Budget and Taxation Committee, shared that lawmakers are crafting solutions to ensure fairness.

“The department is in the process of sending the delayed notices,” Guzzone said. “We’re considering legislation that would extend the mailing deadline and ensure property owners still have the full window to appeal their assessments.”

Behind the Error
The delay stemmed from a vendor issue. SDAT partners with the League for People with Disabilities, a social enterprise in Baltimore, to handle the printing and mailing of reassessment notices. David Greenberg, president of the League, noted that SDAT introduced significant changes to the format of the assessments last fall, leading to technical issues such as duplicate and missing notices.

“We’ve worked closely with SDAT to resolve these challenges,” Greenberg said, adding that the League has maintained a decade-long track record of efficiency and reliability.

A Ripple Effect
The mishap comes on the heels of a December announcement by SDAT, which revealed an average 26% increase in residential property values statewide. Without a timely fix, the mistake could undermine local governments’ ability to collect accurate tax revenues, potentially derailing budgets across Maryland.

Higgs assured that the department is collaborating with lawmakers to enact temporary measures, ensuring fairness in the reassessment process.

“Every affected property owner will receive their notice in the coming weeks,” Higgs said. “We are committed to maintaining a fair timeline for appeals and ensuring accurate revenue collection.”

This unfolding situation underscores the importance of robust processes in government operations, as even a minor oversight can ripple into significant financial and procedural consequences.

This version offers a fresh angle by placing more emphasis on the systemic impact and the steps toward resolution. Let me know if you’d like further refinements!