Missed deadline may cost local governments millions in property tax revenue, good news for residents? — Dollar bills background. Pile of american money cash. One hundred usd dollars banknotes. Financial and economic crisis

Annapolis, MD – A failure by the State Department of Assessments and Taxation (SDAT) to mail out updated property tax assessments could result in significant revenue losses for local governments in Maryland.

Senior state lawmakers have revealed that about 107,000 property tax assessments were not mailed by the SDAT before the year-end deadline. This oversight could lead to a shortfall of approximately a quarter of a billion dollars in expected property tax revenue over the next three years.

The issue was brought to the attention of lawmakers and county officials late Tuesday night. Senate Budget and Taxation Committee Chair Guy Guzzone (D-Howard) acknowledged the mistake on Wednesday, emphasizing the importance of accurate and timely assessments for maintaining expected revenue levels.

The SDAT conducts property valuations on a three-year cycle, affecting both residential and commercial properties, as well as railroads and public utilities. This year, residential properties saw a nearly 26% increase in assessed value, while commercial properties experienced a near 18% rise.

SDAT Director Michael Higgs acknowledged the error in a statement, attributing the issue to a problem with the League for People with Disabilities, the state’s preferred vendor for printing and mailing assessment notices. Higgs assured that the error has been corrected and affected property owners would receive their notices shortly.

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