When you purchase a home, you will pay taxes based on the assessed value of your home. Depending on your community, you may also pay an additional special tax assessments that are above and beyond your standard real estate taxes. If you are unsure if you pay a special tax, visit your county government’s website and locate the tax information for your address. A few special tax communities in Annapolis include Arundel on the Bay, Oyster Harbor, Hillsmere and Cape St. Claire.
What are special tax assessments?
A special tax assessment can be used for improvements in your communities and other services such as snow and trash removal. In addition to or in lieu of your homeowner’s association dues, the special tax assessment is collected with your tax bill. That way, the community does not have to collect the money from you directly. If your community has a special tax, it is typically calculated based on the services that are provided and upcoming improvement projects shared equally by all homeowners.
Some counties also charge a special assessment for water and/or sewer line installation. This special assessment is a fixed amount each year for the term of the loan. When the builder connects your home to the public water and/or sewer supply, the cost is paid back in a loan over 20-30 years. This loan, if not paid off, transfers to the new homeowner.
If you are selling your home, you must disclose both of these charges to your buyer. If you are uncertain whether or not you pay these charges, please contact me!