Don’t forget that the application for your property tax credit covering July 1, 2019 to June 30, 2020, is DUE to the County Tax Office by APRIL 1, 2019!  Click below for a copy of the application.

There were many questions this year regarding how homeowners would receive their tax credit.  As a reminder, if your application is approved, your total COUNTY property tax liability will be reduced by $2,500 (if your County property taxes are less than $2,500, then they will be reduced to zero but no more…).  If you notify your mortgage servicer of your tax credit approval, then they will reduce your monthly escrow payment by up to $208.33 ($2,500 / 12).  If you do not notify your mortgage servicer, then they will continue to collect the full escrow amount.

Every year your mortgage servicer is required to do an escrow analysis and ensure that there are an appropriate amount of funds in your escrow account.  This will usually occur sometime between September to January, depending on the company.  When the analysis is completed, your mortgage servicer will realize that the County tax liability was less than expected and that there is now a surplus in your escrow account.  They will then issue you a refund check.  In theory this refund check should be for approximately $2,500, but keep in mind other factors can affect your escrow account, such as an increased property assessment which takes place every three years.

If you were approved for the property tax credit this past year, then your mortgage servicer may have already reduced your monthly escrow payment moving forward.  This means you will realize your savings monthly for this upcoming tax year.  It also means that if you FORGET to submit your application this year, you are going to OWE a whopping $2,500 to your mortgage servicer come escrow analysis time.

If you have any questions regarding the tax credit, the application, why you didn’t receive the full $2,500 last year, etc…call or text me anytime at 703-615-5078.