What is a “split roll” property tax system?

A “split roll” property tax system is a type of taxation system used in some states, such as Maryland, for property taxes. Under this system, different types of property are taxed at different rates. In most cases, residential property tax rates are lower than other types. For example, in Maryland, residential property is taxed based on a rate of one percent of the assessed value, while commercial and industrial properties are taxed at a rate of two and a half percent. The split roll system means that some types of property, like homes and churches, receive a tax break and pay a lower tax rate than others, like businesses and factories. This type of system is intended to help protect homeowners from higher taxes, while ensuring that businesses pay their fair share. The split roll system has been a hot-button topic in several states, including Maryland. Critics of the system argue that it creates an unfair advantage for homeowners and deprives the state of much-needed revenue. Proponents claim that the system is beneficial for homeowners and helps promote economic growth. No matter your opinion, the split roll system is an important feature of property tax law in Maryland, and will continue to be discussed and debated in the years ahead.

Related FAQs

What are the impacts of tax abatements on property taxes?
What is the “taxable value” of my property?
How can I reduce my property tax bill?
How much can I deduct for property taxes on my income taxes?
What credits or deductions can I get for my property taxes?
How can I apply for a property tax deferral?
What are the common exemptions to property taxes?
What is an exemption from property taxes?
What is an assessment ratio?
How do property tax incentives work?

What is a “split roll” property tax system?

Related FAQs

Related Blog Posts