Tax Sale Coordination and Prevention Services
Tax Sale Coordination and Prevention Services assist homeowners in avoiding tax sale and in understanding and navigating the tax sale process.
What is a Tax Sale?
Each year, Baltimore City sells homeowners’ unpaid city bills (liens) to outside bidders who then charge interest and fees, allowable under state law, to property owners. The 2021 Tax Sale will take place on or around May 12.
An owner-occupied property is eligible for tax sale (also known as a tax lien certificate sale) if the combined total of its city liens is $750.00 or more. For non-owner-occupied properties, the threshold is $250.00. These liens include but are not limited to unpaid real property taxes, special benefits assessments, alley and footway paving bills, streetscape, minor privilege, multi-family dwelling, clean and board, environmental control, and residential registration charges and fees. Beginning in 2020, unpaid water bills will not count towards the $750 tax sale eligibility threshold for owner-occupied properties.
What Can I Do to Avoid or Reduce Risk of a Tax Sale?
Homeowners who are behind in property taxes or other bills, who have received notices from the Department of Finance, the Environmental Control Board, or the Department of Health, or who otherwise believe they are at risk of a tax sale, may receive free legal consultation and assistance by attending a tax sale clinic. Four clinics are held in March and April each year at different times in different city locations. To register or learn more, please call the ProBono Resource Center at 443-703-3052.
Homeowners can also reduce their risk of entering a tax sale by using state and city tax credits and other resources that lower household expenses.
A few of the most helpful resources are:
A homeowner is eligible for this credit if they: 1) own and live in their home; and 2) have a total gross household income of $60,000 or less. The State of Maryland sets a limit on the amount of property tax a homeowner must pay based on their total gross household income. If the homeowner is paying more than the set limit, the property tax is reduced accordingly. For the first time, in 2019 homeowners were able to apply for this credit on-line. Homeowners must apply every year for this credit. Deadline to apply is October 1.
Learn more at https://dat.maryland.gov/realproperty/Pages/Homeowners%27-Property-Tax-Credit-Program.aspx, or call 410-767-4433 or 443-961-6220.
Every Maryland homeowner who owns and lives in their home is eligible for this credit. It shields homeowners from large property tax increases on their principal residence by limiting the annual increase in their property's assessment value (this limit is 4% in Baltimore City). A homeowner has to successfully apply only once for this credit; it is thereafter applied every year. There is no deadline for this application.
Learn more at https://dat.maryland.gov/realproperty/Pages/Maryland-Homestead-Tax-Credit.aspx, or call 410-767-4433 or 443-961-6220.
Although unpaid water bills no longer count towards the $750 tax sale eligibility threshold for owner-occupied properties, the unsettled debt can still be a financial burden and reduce resources available for other household expenses and bills. To inquire about the latest water bill discount programs, to be screened for additional benefits, or to find the closest office to you, please visit https://www.bmorechildren.com/cap, or call 410-545-0900.
Your home is often your biggest source of wealth. To be the legal owner of your home, and to be eligible for tax credits and many home improvement programs, your name must be on the deed. The Maryland Volunteer Lawyers Service provides free consultations and legal services to secure your name on the deed to your home, to assist in completing wills and health care directives and naming a financial power of attorney, and to navigate the estate administration process.
Learn more or register for a free homeowner clinic at http://www.myhomemydeed.org, or call 443-451-4066
For More Information
To learn more about the tax sale process, avoiding tax sale, or to schedule a community-based information session, please contact Michael O'Leary, Tax Sale Services Coordinator: