Sample Real Property Tax Calculation
(Levy Year 2002 - Levy Year 2008)

The sample real property tax calculation is available to help residents understand how the State Department of Assessments and Taxation (SDAT) addresses increases in the assessable value of residential properties through a three-year "phase-in" and through the administration of the Homestead Tax Credit Program.

When a residential property is reassessed the increase in the assessable value is phased-in over a three year period (see row "B"). After the phased-in assessed value is calculated for each year (see row "F"), SDAT determines the assessed value that is ten percent greater than the previous levy year (see row "I"). The difference between the phased-in assessed value and the assessed value capped at ten percent is the assessable base that is used to determine the amount of the Homestead Tax Credit (see row "J").

The last row of the sample calculation (see row "P") shows the actual amount of real property taxes that are due from the resident. This total amount includes the Homestead Tax Credit, as discussed above, and the Income Tax Offset Credit that the City of Rockville provided to owner-occupied residential properties in Levy Year 2007 and is proposing for Levy Year 2008.

For more information on the three-year phase-in or the Homestead Tax Credit Program please visit the SDAT web site at www.dat.state.md.us. For more information or questions on the sample real property tax calculation please call Stacey Tate, the City of Rockville's Budget Director, at 240-314-8407 or email at state@rockvillemd.gov.

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