Maryland Faces $250M Fallout Over Property Tax Assessment Error

An error in the Maryland messaging system caused the late delivery of new property assessments.

Why is Larry Hogan running for the Senate in Maryland? His entry into the race puts the Democrats’ majority in Maryland at risk.

Maryland lawmakers are looking at a legislative solution to the missed deadline for mailing out property tax assessments. This mistake, which affected 107,000 notices and could cost local governments $250 million over three years if it is not corrected, was made by an employee.

Maryland reassesses a third of the property per county every year. The State Department of Assessments and Taxation must send out notices by January 30.

Michael Higgs, the director of the agency, said that this agency discovered a mistake that resulted in notices not being mailed. The deadline for property owners challenging the new assessments has been affected.

Guy Guzzone, a state senator, is the chairman of the Senate Budget and Taxation Committee. He stated that the attorneys were working to find a fair solution.

Guzzone said in an interview with NBC News on Thursday that “we are trying to resolve a mistake.” Now, the department can send out mail. The department is currently working on the process. The people will have the opportunity to appeal their assessments from the moment they receive the mail.

Guzzone stated that legislators are looking at a provision that would extend the deadlines for mailings.

Here is a picture of the Maryland State House at Annapolis, Maryland on May 11, 2023. Maryland legislators are trying to find a solution for a problem with property tax assessments that were not sent before the deadline. The people were not able to appeal.

Maryland Matters is the first site to have reported this error.

Higgs said the agency relies upon the League of People with Disabilities, as it is the preferred vendor of the state for printing and sending reassessment notices. The vendor has corrected the mistake and those who did not receive the notices in the last few weeks will now be receiving them.

Higgs said that the agency was working with the General Assembly to draft legislation allowing a temporary adjustment in the time for distribution of notifications about reassessment.

Higgs said that the legislation would ensure that the State reassessment was completed accurately and fairly and that all revenue was collected. “Each account in this group will receive a notice within the next few weeks, and have the 45-day window to appeal the new assessment.”

David Greenberg, the president of the League for People with Disabilities in Baltimore, is a leader. He stated that the social enterprise has handled, printed, and mailed notices for more than 10 years with professionalism and integrity.

Greenberg wrote in an email: “SDAT significantly changed the format of assessment in the fall of 2023.” SDAT found that there were duplicate and missing notices. Since then, the League has worked with SDAT closely to resolve this issue.

In December, the Department of Housing and Urban Development reported that the average residential property value in Maryland’s 23 counties including Baltimore had increased by almost 26 percent.