Real Property Tax Bills
The largest portion of the City’s revenue, about 28 percent, comes from real property taxes. The City sets an annual real property tax rate. For fiscal 2015/2016, the rate is $2.248 per $100 of assessed value.
The value of each parcel in the City is set by the State Department of Assessments and Taxation. The City’s real property tax for the parcel then is determined by multiplying the City’s tax rate times the State’s assessment. For example, the City tax on a property assessed at $100,000 is $2,248.
Through its real property tax bills, the City also collects the State’s real property tax and remits it to the State. The current State tax rate is $.112 per $100 of assessed value. Exemptions and credits may reduce the total taxes due on a property.
It is the owner’s responsibility to provide the bill to his or her mortgage lender.
Bills Arrive in July
The City mails real property tax bills on July 1 each year. They are due when issued but the City allows a discount of ½ percent if paid on or before July 31. Interest of 1 percent and penalty of 1 percent per month are imposed if the City taxes are not paid before October 1. The existence of a pending assessment appeal does not excuse non-payment. If an owner’s appeal is successful, then the City will refund the appropriate amount plus interest. Revised bills can be paid without interest and penalty if paid within 30 days of issuance.
Paying in Installments
State law permits real property taxes on owner-occupied residences and some small business to be paid in two equal installments, the first payment due in July and the last payment before January 1. A small service fee is added to the second installment.
Because real property tax bills are issued each year, a property owner is responsible for knowing that taxes are due and for paying them – even if the owner does not receive a bill in the mail.
Obtaining Tax Information
Tax information, including open balances and the address where the City mails an owner’s bill, is available online at BaltimoreCity.gov, by calling 410-396-3987, or by visiting Counter 2 in the Wolman Municipal Building, 200 Holliday St., and any weekday between 8:30 a.m. to 4:30 p.m. The City also accepts advance payments on the next year’s real property tax bills.
If taxes on non-owner occupied properties remain delinquent by at least $250, or by at least $750 for owner-occupied residences, then the property becomes eligible for inclusion in the next annual tax sale. The property owner will receive a Final Bill and Legal Notice by mail from the City in early February.