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In a nutshell how the CHAP 10 year tax credit works…

January 16, 20140 Comments

Here is a basic overview of how the credit is calculated and how it works. The tax credit is not calculated until the property is reassessed, and the calculation is handled by the City’s Department of Finance. The tax credit is a dollar value that is subtracted from an owner’s property tax bill each year for 10 years. The tax credit offsets any increase in Baltimore City’s taxes that occurs following a substantial rehabilitation project. For Example: if your property taxes were $2,000/year before the property was rehabilitated and, once the project is complete, the new assessment increases the taxes to $8,000/year, your tax credit would be $6,000/year. That $6,000 is subtracted each year for ten years from your taxes. The tax credit appears as a “Special Credit” on the tax bill, so if the credit is already active you can see the value on last year’s tax bill.

Filed in: CHAP 10 Year Tax Credit

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