Getting Rid of Deceiving Property Tax Ads in Baltimore

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

Taxes- they are apart of life and we all have to pay them, regardless of our age, our backgrounds, or our aspirations of purchasing glory. When buying a home, property taxes are a huge piece of the budgeting puzzle. Deciding how much you can afford for a home, means not only taking into consideration the cost of the monthly mortgage payment, but the cost of the insurance, taxes and ground rent (if applicable) as well. The principal and interest payments you make toward your mortgage every month are referred to as your P and I. The three latter payments are called your escrow.

For a long time in Baltimore city, it was difficult for first time homeowners to calculate the true cost of the property taxes to be paid for their first home, and many found their calculations were severely off, due to problems surrounding a tax provision known as the Maryland Homestead Credit. This tax credit is given to homeowners who have lived in their home for several years, and re-calculated each year the homeowner lives in the home.

Up until recently, many real estate advertisements were misleading potential homebuyers, by advertising the current taxes being paid on the property instead of the true tax rate. Many homebuyers we severely misinformed when creating their budget, taking into account the wrong tax amounts.

To combat this problem, the city passed a new ordinance last week to ensure more accurate advertising, in order to protect consumers. According to an article in the Baltimore Sun, the new ordinance, which takes effect in three months, disallows advertising the current owner’s taxes and instead requires that figures reflect the property's most recent tax assessment, multiplied by the city property tax rate.

NHS of Baltimore is happy to see consumers getting the right information. Property taxes are the second largest thing homebuyers have to worry about, next to their mortgage. People need to be armed with the right information in order to make informed and responsible decisions when buying a home. If anything good has come from the current housing crisis, it is the return of oversight and accountability in all aspects of the market.