OCEAN CITY, Md. -Â The value of real property in Ocean City has witnessed an increase of $4 billion since 2021, as reported by the State Assessment Office. This substantial surge has not only sparked a boom in property values but also raised concerns among homeowners about the impending impact on property taxes.
Properties in Maryland are broken into three groups, each assessed every three years. This value increase was for properties across the state in group three, which includes the Ocean City area. According to the Maryland State Department of Assessments and Taxation, this group saw a value increase of about 23.4 percent since its last reassessment three years ago.
In a simple mathematical breakdown, a property that was once valued at $100,000 is now estimated at around $125,000. However, the ripple effect of this surge is felt in the form of increased property taxes. In our example, homeowners could be looking at an additional burden of $115.
Lance, a resident who invested in Ocean City property three years ago, expressed his apprehension about the increase.
"We bought property in Ocean City probably about three years ago. It was a great deal at the time," he told CoastTV. "Since then, we kind of got the double whammy. I just got the assessment on Monday, and our taxes will almost double, and that's on top of the condo reserve fund that also doubled, so it's kind of a hit."
On the other hand, the State Assessment Office's director, Michael Higgs, sees the good the new valuations could bring for homeowners.
"For six consecutive years, all 23 counties and Baltimore City have experienced an increase in residential and commercial property values, indicating that owning a home or business in Maryland continues to be a good investment," he said.
The increase in property taxes is not due to a rise in tax rates. Instead, the surge in property values, encompassing homes, buildings, and real property, is a result of market dynamics. The new assessment takes into account this substantial increase when determining an owner's tax burden.Â
Each reassessment notice includes information about the department's Homeowners' and Homestead Tax Credits, which Higgs said save Marylanders more than $260 million in taxes each year.
While homes and commercial properties in Ocean City won't be reassessed for another three years, nearby areas like Berlin and Ocean Pines are set to undergo appraisal this year.