Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
December 9, 2020
The Honorable Guy Guzzone The Honorable Anne Kaiser
Chair, Senate Budget and Taxation Committee Chair, House Ways and Means Committee
3 West Miller Senate Office Building 131 House Office Building
11 Bladen St. 6 Bladen St.
Annapolis, MD 21401 Annapolis, MD 21401
Re: 2020 Legislative Tax Sale Ombudsman Annual Survey Report – MSAR #12804
Dear Chairman Guzzone and Madam Chair Kaiser:
The State Department of Assessments and Taxation (SDAT) is required to submit a report to the
Chairmen of the Senate Budget and Taxation and the House Ways and Means Committees on the
information collected through our Annual Tax Sale Survey of the counties and the activities of
the State Tax Sale Ombudsman. This requirement is in accordance with Tax Property Article
§14-880 and stated under House Bill 1181 (Ch. 440, Acts of 2020). In accordance with this
reporting requirement, SDAT is pleased to provide you with the enclosed report.
As always, I appreciate the opportunity to share more information on our policies and procedures
with you. Please feel free to follow up with me or other members of my team should you require
additional information.
Very truly yours,
Michael Higgs
Director
Enclosure
cc: Committee Members
Ms. Sarah Albert, DLS Library and Information Services
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
I. THE OFFICE OF THE STATE TAX SALE OMBUDSMAN
The mission of the Office of State Tax Sale Ombudsman is to help homeowners navigate the tax
sale process by providing the best tax sale help, information, and resources available. Prior to
formally launching the office on January 1, 2020, the Department created a dedicated toll-free
number hotline, shared email address, worked with counties to include required information on
their tax sale notices, and implemented a new website at dat.maryland.gov/taxsale that lists
information specific to each county’s tax sale process, as well as more than 50 benefit programs
and resources available to Marylanders.
Due to the many changes resulting from COVID, some of the following reporting is incomplete,
as many counties delayed or canceled their 2020 tax sales entirely. However, the Ombudsman’s
office has accomplished its mission and is continually working to improve the service the office
provides and explore how to best meet the needs of Maryland homeowners.
II. SUMMARY & ANALYSIS OF THE 2020 ANNUAL SURVEY
The following is a summary and analysis of information reported by the counties in our first
Annual Survey, described in Tax Property Article §14-879.
COUNTY TAX SALE PROCESSES & POLICIES
1. Fee Types Collected through Tax Sale, Fiscal Year (FY) 2020.
Each county collects a variety of charges through the tax sale process. All counties include
property taxes, and 22 counties include water and sewer charges. However, many charges, such
as environmental, nuisance liens, and local government assessments, may also be collected
through tax sale. Table 1 shows how many counties reported collecting each type of fee through
tax sale.
Table 1. Fee Types Collected through Tax Sale - FY 2020
Fee Type Number of Counties
Property Taxes 24
Water & Sewer 22
Clean up/ Maintenance 14
Environmental 9
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
Miscellaneous Fees 5
Special Assessments 5
Nuisance Fees 4
Code Violations 3
Hotel/Motel Fee 2
Personal Property Tax 2
PACE Loans 1
Agricultural Tax Penalties 1
Financial Info Fee 1
Abandoned Property Fee 1
2. Required Time Overdue for Tax Sale Eligibility, FY 2020.
The length of time the tax on a property is required to be overdue before the county includes the
property on the tax sale eligibility list ranges from as soon as the current year tax bill is
delinquent to three years past due. Table 2 shows the range by county.
Table 2. Required Time Overdue for Tax Sale Eligibility - FY 2020
Counties Required Time Overdue
Baltimore City, Baltimore County, Caroline, Carroll,
Frederick, Harford, Queen Anne’s, Talbot, Wicomico
Same tax year, once
delinquent
Howard
2 months
Anne Arundel, Montgomery, Prince George’s
4 months
Washington
5 months
Charles
8 months
Cecil, Garrett
1 year
St. Mary's
18 months
Calvert, Dorchester, Kent, Somerset, Worcester
2 years
Allegany
3 years
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
3. Annual County Tax Sales.
All but one of the counties conduct a tax sale every year. Only Wicomico County holds its sale
every other year. Typically, all tax sales are held from March through June, prior to the next
year’s tax billing cycle that starts on July 1. Twelve tax sales are held in May. Table 3 shows the
month when each county usually has its tax sale. In 2020, due to the COVID-19 pandemic, half
of the counties canceled or delayed their tax sales until the second half of the year to give
homeowners more time to make arrangements to pay their bills.
Table 3. Annual County Tax Sales - by Month
Month Counties holding tax sales
March St. Mary’s
April Calvert
May Allegany, Baltimore City, Baltimore County, Charles, Frederick, Garrett,
Howard, Kent, Prince George’s, Queen Anne’s, Talbot, Worcester
June Anne Arundel, Caroline, Carroll, Cecil, Dorchester, Harford,
Montgomery, Somerset, Washington, Wicomico
4. Municipal Corporation Tax Sales.
Seventeen of the 24 counties conduct tax sales on behalf of municipal corporations in their
county.
5. Interest Charged on Overdue Property Taxes, FY 2020.
The monthly rate of interest counties charge on overdue property taxes ranges from 0.5% to 2%.
Table 4 shows that 15 counties charge 1%, seven counties charge between 1.5% and 2%, and
two counties charge less than 1%.
6. Interest Charged to Redeem After Tax Sale, FY 2020.
The annual rate of redemption interest a property owner is required to pay to redeem the property
after a tax sale ranges from 6% to 20%. This amount is paid to the lien purchaser, and counties
report that one of the main factors determining the interest rate is whether they can attract
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
bidders to their tax sales. Table 4 shows that more than half the counties charge between 12 and
20%, and 11 counties charge between 6 and 10%.
Table 4. Interest Charged on Overdue Property Taxes & Redemption - FY2020
County Overdue Property Taxes Redemption Interest
Monthly Rate Annual Rate
Allegany
1.5
18
Anne Arundel
0.5
18
Baltimore City
2
12
Baltimore County
1
12
Calvert
1
10
Caroline
1
10
Carroll
0.66
14
Cecil
1
12
Charles
1
12
Dorchester
1
10
Frederick
1
8
Garrett
1
10
Harford
1.5
12
Howard
1
18
Kent
1.5
10
Montgomery
1.66
20
Prince George's
1.66
20
Queen Anne's
1
12
St. Mary's
1
6
Somerset
1
12
Talbot
1.5
6
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
Washington
1
6
Wicomico
1
8
Worcester
1
10
7. Redemption Period, FY 2020.
The redemption period is determined by statute. This is the period after a tax sale when the
homeowner may pay off the lien on (“redeem”) their property. The homeowner has the right to
redeem their property at any time after a tax sale up until the right of redemption is finally
foreclosed, when a circuit court judge signs an order to foreclose in favor of the tax lien
purchaser.
In the 23 counties, the earliest the lien purchaser may file a motion to foreclose the owner’s right
to redeem is six months after the date of the tax sale. In Baltimore City, the earliest a lien
purchaser may file this motion for an owner-occupied residential property is nine months after
the date of the tax sale.
Two years after the date of the tax sale, an investor who has not filed this motion loses their right
to foreclose, and they forfeit any funds paid to the local jurisdiction. When this happens, the
homeowner may still redeem the property by paying off the county’s remaining lien amount. If
the lien continues to remain unpaid, the county may sell the lien again in their next tax sale.
8. Minimum Threshold Amount of Unpaid Taxes for the 2020 Tax Sale.
The minimum threshold amount of unpaid taxes on a residential property that will cause the
county to put the property in tax sale ranges from $0 to $750 across the State, and may be subject
to change each year by the county. If the homeowner makes a partial payment that brings the
balance below the threshold amount, the county will remove the property from their tax sale list.
The homeowner still owes this amount, but they’ll have more time to pay and won’t incur the
added interest and fees associated with redeeming the property after a lien is sold at tax sale.
Table 5 shows that in 2020 five counties that will remove a property from tax sale with an unpaid
bill balance of up to $750, and four counties may include a property in their tax sale if there is
any amount unpaid.
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
Table 5. Minimum Threshold Amount Unpaid for the 2020 Tax Sale
Baltimore City $750 owner occupied; $250 non-owner occupied
Caroline $750 or any amount 2 years delinquent
Carroll $750 or any amount 5 years delinquent
Calvert, Cecil $750
Baltimore County $500 owner occupied; $250 non-owner occupied
Garrett, Prince George’s $500
Anne Arundel, Charles, Frederick, $250
Harford, Howard, Kent,
Montgomery, Somerset
Worcester $200
Wicomico $100
Talbot $50
Queen Anne’s $25
Allegany, Dorchester, $0
St. Mary’s, Washington
9. Establishment of a County Tax Sale Ombudsman.
None of the 24 counties established a Tax Sale Ombudsman to fulfill all the responsibilities in
accordance with Tax Property Article §2-112(d). However, some counties have designated
specific county officers to handle tax sale-related matters.
10. Properties Withheld from Tax Sale & Eligibility Criteria, FY 2020.
None of the 24 counties reported the withholding of a property from their 2020 tax sales under
Tax Property Article §14-811(e), which allows a county to withhold from sale a dwelling owned
by a low-income homeowner, at least 65 years old, or disabled if the homeowner meets
eligibility criteria established by the county or municipal corporation. None of the 24 counties
reported the establishment of eligibility criteria to withhold a property under this provision.
BID BALANCE FUNDS
These funds are the lien purchaser’s bid amount minus the amount owed for taxes, interest,
penalties, and sale costs. When the property owner’s right to redeem has been foreclosed, and
they lose their property, they are entitled to claim from the county these funds in excess of what
is owed.
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
11. Total Funds Held and Distributed, FY 2020.
According to the 2020 Annual Survey responses, the amount of bid balance money held by each
county in a special fund pending distribution to property owners ranges from zero to nearly
$4,000,000. Some bid balance data is currently unavailable as of this report. We will continue
working with the counties to collect their updated data. Table 6 shows that ten counties reported
over $1,000,000 in their special funds, and 11 counties report less than $100,000 in their special
funds, including four counties reporting zero balances.
12. Funds Distributed to Property Owners, FY 2020.
The bid balance funds distributed to property owners between July 1, 2019, and June 30, 2020,
were an estimated $10 million by Montgomery County, over $1.5 million by Anne Arundel
County, 15 counties under $500,000, and seven counties reporting $0. Some bid balance data is
currently unavailable as of this report. Table 6 shows this range.
Table 6. Bid Balance Funds Held & Distributed to Property Owners - FY 2020
County Funds Held $ Funds Distributed $
Allegany
1333
0
Anne Arundel
2847725
1532110
Baltimore City
3646114
0
Baltimore County
*
*
Calvert
2690618
*
Caroline
3128
2584
Carroll
55697
*
Cecil
51811
492617
Charles
0
0
Dorchester
*
*
Frederick
405660
476708
Garrett
0
0
Harford
0
0
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
Howard
497336
447388
Kent
67871
1239
Montgomery
3615426
9128190
Prince George's
2290344
*
Queen Anne's
52788
27530
Somerset
700393
3108
St. Mary's
0
23027
Talbot
0
0
Washington
201118
42000
Wicomico
107351
2415
Worcester
59613
0
* Not available as of this report
13. Funds Transferred to the County, FY 2020.
Only Howard County reported that bid balance money was transferred to the county between
July 1, 2019, and June 30, 2020. The total amount transferred was $77,351.
2020 TAX SALES
The following data is from ten of the 11 counties that held tax sales this year. Baltimore
County’s data is not available as of this report.
1. Properties Advertised in the First Notice.
According to the survey responses, the total number of properties advertised in the first notice for
all counties that held a tax sale in 2020 was 25,270. This number includes commercial, non-
owner occupied, and owner occupied properties. The largest number advertised was 15,789 in
Baltimore City. The next largest was 3,242 in Prince George’s County. The smallest was 346 in
Howard County.
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
The total lien amount for all properties advertised in the first notice was $214,914,008, with an
average lien amount of $8,505. This includes commercial, non-owner occupied, and owner-
occupied properties.
2. Property Liens Offered for Sale.
The total number of property liens offered for sale for all counties that held a tax sale was
10,067. This includes commercial, non-owner occupied, and owner-occupied properties. The
largest number of property liens offered for sale by a county was 5,651 in Baltimore City. Table
7 shows the total number offered, the total lien amount, and the average lien amount for each
county that held a tax sale.
Table 7. Liens Offered for Sale, Total & Average Lien Amounts - 2020 Tax Sales
(Includes commercial, non-owner and owner occupied properties)
County Number Offered Total Lien Amount Average Lien Amount
Baltimore City 5651 $81,952,980 $14,502
Baltimore County Not available as of this report
Cecil 412 $1,042,597 $2,543
Dorchester 545 $683,383 $1,254
Frederick 461 $1,574,983 $3,417
Harford 258 $833,041 $3,229
Howard 206 $1,084,850 $5,266
Prince George’s 1856 $11,786,380 $6,350
Somerset 150 $380,000 $2,500
St. Mary’s 261 $600,961 $2,303
Washington 267 $1,770,295 $6,630
3. Water & Sewer Service Property Tax Sale Liens.
Table 8. Liens Offered for Sale for Water & Sewer Only - 2020 Tax Sales
County Number Offered Total Lien Amount $ Average Lien Amount $
Baltimore City
148
1927901
13026
Baltimore County
Not available as of this report
Cecil
45
58802
1307
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
Dorchester
3
3616
1205
Frederick
152
72001
474
Harford
35
24148
690
Howard
64
17884
279
Prince George's
Not available as of this report
Somerset
0
0
0
St. Mary's
18
28642
1592
Washington
25
18750
750
4. Property Liens Offered for Sale.
Commercial, Non-Owner Occupied, and Owner Occupied, Combined
The 11 counties that held tax sales in 2020 reported 8,399 liens sold across the state, not
including Baltimore County, whose data was not available as of this report. This number
includes commercial, non-owner occupied, and owner-occupied properties. Baltimore City sold
the largest number with 4,299, and Prince George’s County sold the second largest with 1,714.
Owner Occupied Properties
For properties listed as owner-occupied, including dual-use properties occupied by the owner,
there were 2,552 liens sold (not including Baltimore County, whose data was not available as of
this report). Baltimore City has the highest number, with 1,015 owner-occupied liens sold. Prince
George’s County has the second-highest with 691 owner-occupied liens sold. The average lien
amounts on owner-occupied properties sold were $5,709 in Baltimore City, $2,324 in Cecil
County, and $4,495 in Howard County.
Table 9. Liens Sold on Owner Occupied Properties - 2020 Tax Sales
County Number Sold
Baltimore City 1015
Baltimore County Not available as of this report
Cecil 212
Dorchester 32
Frederick 275
Harford 118
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
Howard 108
Prince George’s 691
Somerset 21
St. Mary’s 31
Washington 49
5.County Obtained Lien Certificates, 2020 Tax Sales.
Table 10. Obtained by the County, Total & Average Lien Amounts - 2020 Tax Sales
County Number Obtained Total Lien Amount $ Average Lien Amount $
Baltimore City
1352
66725038
49362
Baltimore County
Not available as of this report
Cecil
23
60529
2632
Dorchester
434
340609
785
Frederick
9
347420
38602
Harford
29
254037
8760
Howard
9
123038
13670
Prince George's
142
3759721
26477
Somerset
32
121000
3782
St. Mary's
113
86099
762
Washington
70
1218859
17412
REDEMPTIONS & FORECLOSURES
The three final categories of data: properties redeemed before foreclosure, subject to foreclosure,
and foreclosed, were incomplete at the time of this report. The counties require additional time to
process and compile. We will continue working with the counties to provide this data.
It is also important to note that the liens sold in the 2020 tax sales, detailed earlier in this report,
may be redeemed or subject to foreclosure during the two years that follow the tax sale date. As
described in Part II, Number 7 of this report, lien purchasers in the 2020 tax sales cannot file a
motion to foreclose until six months (nine months in Baltimore City) after the tax sale date.
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
The data reported below is for redemption and foreclosure activity from July 1, 2019, through
June 30, 2020.
1. Properties Redeemed Prior to Foreclosure, FY 2020.
Table 11. Total & Average Lien Amounts - FY 2020
County Number Redeemed Total Lien Amount $ Average Lien Amount $
Allegany
76
219906
2894
Anne Arundel
651
2217601
3406
Cecil
403
806677
2002
Frederick
236
640994
2716
Garrett
57
160953
2824
Howard
21
52550
2502
Prince George's
2122
Not yet available
Not yet available
Somerset
9
22904
2545
St. Mary's
76
229194
3016
Washington
185
518349
2801
Worcester
51
251977
4941
(Data not yet available for Baltimore City, Baltimore County, Calvert, Caroline, Carroll, Charles,
Dorchester, Harford, Kent, Montgomery, Queen Anne’s, Talbot and Wicomico Counties.)
2. Properties Subject to Foreclosure.
Two counties reported properties subject to foreclosure by the county as of this report. St.
Mary’s County reported 58 properties, with a total lien amount of $42,206 and an average lien
amount of $728. Washington County reported 12 properties, with a total lien amount of $78,000
and an average lien amount of $6,500.
3. Properties for which the Right of Redemption has been Foreclosed by a Private Holder of a
Tax Lien Certificate, FY2020.
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
Table 12. Total & Average Lien Amounts - FY 2020
County Number Foreclosed Total Lien Amount $ Average Lien Amount $
Allegany
5
8342
1668
Anne Arundel
44
147820
3360
Cecil
0
0
0
Frederick
12
43757
3646
Prince George's
85
Not yet available
Not yet available
Somerset
0
0
0
St. Mary's
2
5089
2545
Washington
12
78000
6500
Worcester
2
70380
35190
(Data not yet available for Baltimore City, Baltimore County, Calvert, Caroline, Carroll, Charles,
Dorchester, Garrett, Harford, Howard, Kent, Montgomery, Queen Anne’s, Talbot and Wicomico
Counties.)
III. STATE TAX SALE OMBUDSMAN ACTIVITIES
CONTACT WITH HOMEOWNERS
From January 1, 2020, through June 30, 2020, approximately 835 homeowners contacted our
office, an estimated 713 by phone, and roughly 122 by email. We expect these numbers to
increase as more homeowners become aware of our service.
Homeowners contact us for assistance with a variety of issues surrounding tax sale. We listen
carefully, show compassion and empathy, provide information, and discuss resources that may
help them. In particular, we seek to understand the unique issues the homeowner is facing and to
provide individualized assistance.
Our assistance strategy usually starts with explaining the tax sale process, where the homeowner
is in that process, and answering any questions they might have. Then we assist with
communication with the county finance office, applying for tax credits, connecting with a legal
service provider (when needed), and accessing financial and housing counseling. We also help
homeowners resolve issues with their tax credit applications or update their property’s
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
assessment or owner’s records with the local SDAT assessment office. We also explore issues
and solution strategies for a variety of individual circumstances.
At the end of our communications, we always make certain homeowners know that if they
encounter an obstacle, are unsure of the next steps, or have any questions, to please contact us
again. Homeowners are often extremely appreciative that we are willing to take the time needed
to help them, and understand that we will continue to be available to help.
TAX CREDITS
From January 1, 2020, through June 30, 2020, we helped about 368 homeowners to apply for the
Homeowners' Property Tax Credit, and about 217 homeowners to apply for the Maryland
Homestead Tax Credit.
The Homeowners’ Property Tax Credit is one of our most important tools to help homeowners
address their delinquent tax bills. We ask every homeowner and check their address to determine
whether they have applied for the Homestead Tax Credit and the Homeowners’ Property Tax
Credit for the current year. Whether or not someone is receiving either of these credits, and status
updates once an application is submitted, can be viewed on our free online real property search.
When a homeowner may qualify and has not applied, we work closely with SDAT’s Tax Credits
division to assist homeowners through the application process. Sometimes there is an urgent rush
to help a homeowner access a credit to avoid inclusion in an upcoming tax sale. We also have
instances when the homeowner is over 70 and may apply for multiple years. Other times the
homeowner has already applied but needs additional documentation for their application. Often,
we offer the tax credit application as part of a “checklist”, along with other information and
referrals, as a reminder to re-apply for the coming tax bill once their immediate delinquent tax
situation is resolved.
BENEFITS PROGRAMS
From January 1, 2020, through June 30, 2020, we helped about 75 homeowners to apply for
other discount programs or public benefits.
We routinely assist homeowners in applying for public benefits programs. We also refer a
majority of the homeowners we assist to financial counselors, who regularly help homeowners
apply for various public benefits and assistance programs not directly related to tax sale.
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
The most common benefits programs we help homeowners to apply for are the Supplemental
Nutrition Assistance Program (SNAP), which provides low- and no-income individuals and
families with money to buy food each month. We also assist homeowners with Maryland Energy
Assistance Programs, which provide low-income homeowners with financial assistance with heat
and electric bills. These financial resources can help homeowners when they are assembling the
funds they need to pay their tax bills.
LEGAL SERVICES, HOUSING COUNSELING, & SOCIAL SERVICES
From January 1, 2020, through June 30, 2020, we referred approximately 499 homeowners to
legal services, housing counseling, and other social services, described below.
Legal Services
The Department does not provide legal advice, but does partner with nonprofit legal services that
provide legal advice for free or reduced fees and assistance to qualifying homeowners.
Homeowners’ legal needs range from changing the title to a property after death and disputes
over ownership, responding to tax foreclosure, as well as other civil legal issues. We also offer
this service option whenever a homeowner states that they will not be able to pay their
delinquent bill.. Legal services are usually part of a list of resources we provide to homeowners
based on their individual circumstances.
Housing & Financial Counseling
These service providers help homeowners create budgets, manage their finances, and determine
how to meet their current housing needs. They are nonprofits and community-based
organizations approved by the U.S. Department of Housing and Urban Development (HUD).
They are located across the state, serving local communities in every county. Many HUD
employees speak multiple languages, which helps us make referrals suited to homeowners’
language needs.
Their services include financial management and budget counseling, credit workshops, mortgage
delinquency/ default resolution, prevention counseling and workshops, predatory lending
education, reverse mortgage counseling, homeless counseling services, and rental housing
counseling and workshops, among others.
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
Government Assistance
The Maryland Department of Human Services assists those in economic need and provides a
variety of preventive and protective services to vulnerable Marylanders across the state. The
Maryland Department of Aging helps homeowners aged 60 or older access assisted living,
meals, medication management, caregiver support, transportation, personal care and healthy
living, and dealing with diseases and injuries.
The Internal Revenue Service’s Earned Income Tax Credit provides a financial benefit for
individuals with low to moderate-income. The Comptroller of Maryland offers income tax
credits and deductions, including the Earned Income Tax Credit, Poverty Level Credit, Child and
Dependent Care Credit, and Independent Living Tax Credit.
Finally, SDAT’s Tax Credits division helps homeowners apply for the Homeowners’ Property
Tax Credit and Homestead Tax Credit. SDAT’s local assessment offices help homeowners apply
for the Disabled Veteran’s Exemption, Blind Person’s Exemption, and assist homeowners in
updating property ownership/residence records and appealing property tax assessments.
2020 ANNUAL SURVEY
Our first Annual Survey asks 50 questions about each county’s tax sale processes and policies
and detailed data on properties in their most recent tax sale. It also collects data on bid balance
excess funds, and redemption and foreclosure data from the preceding tax year.
To summarize and analyze this information for the 2020 Annual Report due on November 15,
we initially gave the counties a survey response deadline of August 31. However, all but four
counties delayed or canceled their tax sales in 2020 to provide homeowners additional time
during the COVID-19 pandemic. One of the consequences was that instead of all tax sales
occurring before July (as usually happens), many sales occurred later, even into October. This
meant that the counties were administering their tax sales during the busy July 1 tax billing
cycle. It also meant that some of their tax sale data were not available at the time of this report.
With COVID-19 delaying or canceling tax sales, many counties have not provided some of the
data required in our survey. Since this is our first year conducting the Annual Survey, the results
will be an important insight informing our assistance strategies in the future to continue to pursue
any missing data.
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
In our first survey this year, we asked the counties about their 2020 tax sales and for other data
for FY 2020. Several counties have stated that our survey response schedule is a significant
challenge for them. They point to the survey itself, which requires significant effort, and the
limited time to conduct their tax sale, compile data, and respond to our survey by August 31 as
they prepare for the next tax billing cycle on July 1. Counties have suggested that it would be an
easier, more complete reporting process if the survey asked for the prior year’s tax sale
information.
Given our insight into collecting the most complete and accurate county data, as well as COVID-
19 related impacts limiting many survey responses, we are considering whether our 2021 Annual
Survey should be a follow up on the same period as the 2020 Annual Survey. This would let us
fill in missing or incomplete data, particularly on redemption and forfeiture, which requires
significant effort by the counties to compile but important to gain a full understanding of what
homeowners are facing. A prior-year tax sale strategy would put us on a schedule to collect more
complete data in future surveys while giving the counties more time and flexibility to respond.
IMPROVEMENT INITIATIVES
1. In discussions with our partner service providers, county finance officers, and many hundreds
of homeowners, we find that one of the major factors contributing to tax sales is the need for
financial knowledge and skills training that to help homeowners make informed and effective
decisions with their financial resources. Most homeowners facing tax sale on their principal
residence have some income and often no mortgage, but they often lack a plan or strategy to pay
their taxes on time. Financial training would help homeowners with financial decisions,
management of money, and help them stay out of tax sale.
2. Currently, homeowners receive their annual tax bill on July 1, and if they cannot pay the full
amount, they will often put the bill aside instead of contacting their county finance office to
arrange to make a partial payment. Partial payments can help homeowners gradually pay down
their bill. Many homeowners could avoid being placed on the tax sale list by making a partial
payment to reduce their balance below that county’s tax sale threshold. It might be helpful to
provide information on property tax bills encouraging homeowners to make partial payments if
they don’t have the full amount. It could also include that county’s threshold amount and specify
how much the homeowner must pay to bring their balance below that amount and avoid tax sale.
Homeowners also seem to be more comfortable making payments as part of a structured
payment plan than doing so on their own. Baltimore County offers a formal payment plan for
homeowners to apply. However, most counties do not provide this. There are models in other
Larry Hogan, Governor ∙ Boyd K. Rutherford, Lt. Governor ∙ Michael L. Higgs, Jr., Director
Office of the Director
300 W. Preston St., Room 605, Baltimore, MD 21201
www.dat.maryland.gov
410-767-1184 (phone) 1-800-552-7724 (MD Relay)
410-333-5873 (fax) 1-888-246-5941 (toll free)
states, including one in Philadelphia, where a third-party provider manages a payment plan
system. Partnering with third-party billing services could help homeowners to budget their tax
bill throughout the year. It wouldn’t require the counties to change to a monthly billing system,
which could be prohibitively expensive and labor-intensive, nor would counties have to
administer a payment plan option. There would be no cost to the State or the counties.
3. Homeowners 70 years or older may apply for prior year Homeowners’ Property Tax Credits,
but many homeowners facing tax sale are younger. While the application deadline to apply the
credit to the July 1, 2020 tax bill is October 1, 2020, the tax sale notice for this tax bill would not
be sent until January 2021 at the earliest, well past the October 1 deadline and too late to apply
for the credit. This homeowner might have forgotten to apply, or may not have been aware of the
credit, or that they would have qualified. We are currently exploring improvements to this
situation that would have a minimal budget impact and would not incentivize homeowners to
become delinquent on their taxes to qualify for more credits.
IV. CONCLUSION
We are continually exploring ideas to improve how we meet the needs of homeowners. We look
forward to working with our partners and the legislature to find creative solutions that work for
everyone.
