Frequently Asked Questions (FAQ's)Real Estate Taxes and Tax Sale | Tax Sale Bidder Questions | Miscellaneous
Real Estate Taxes and Tax Sale Questions
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Q. When are my real estate taxes due?
A. Tax bills for real estate are issued July 1 of each year and are due immediately. There are several options for payment, but if a bill remains unpaid, the property will be "sold" at our annual tax sale the first Monday in June.
Q. My mortgage company pays my tax bill. Why did I get a bill?
A. The law requires us to send a bill to each property owner as the property owner is ultimately responsible for payment of the taxes. Effective in July 2003, your mortgage company can obtain a copy of your bill electronically by visiting our website. It is up to you to check with your mortgage company to see if they are paying promptly.
Q. I received a "half-year new construction bill". My mortgage company has no record of it and did not escrow it. What is this bill?
A. The "half-year new construction bill" is levied on new construction that has occurred since the cut-off for the regular July 1 billing. Typically the July bill reflects the tax on the undeveloped lot and the "half-year" bill is for the new construction when a house is completed.
Q. How can I be sure that my mortgage company pays promptly?
A. You can now check the status of your account online. To do so, you will need to click on "Check Your Account" and enter either your account number or address. You can also call our office at (410) 996-5385 or e-mail us at sdondero@ccgov.org. Typically, the mortgage companies send their payments the last week of September and the last week of December. Due to the volume of mail we receive, it takes us a while to process all the payments so please wait until a week or so after the due date to call us.
Q. Why does my bill say Principal Residence - Yes or No?
A. "Principal residence - Yes" means that the property is the principal address of the owner, i.e. the property owner lives there at least 6 months out of the year. "Principal residence - No" means that the owner does not occupy the property for more than 6 months of the year. Examples of non-owner occupied include vacation homes, rental properties, etc. Only owner-occupied properties are eligible for the Homeowner's Tax Credit or the Homestead Credit.
Q. What is the Homeowner's Tax Credit?
A. The Homeowner's Tax Credit is available to all homeowners regardless of age and is based upon household income. The credit is based on a formula which compares income to the amount of the tax bill and sets limits to the amount of tax billed. In order to qualify you must submit an application to the Department of Assessments and Taxation no later than September 1. You must reapply each year. For more information or to request an application, please contact the Cecil County Treasurer's Office.
Q. What is the Homestead Credit?
A. The Homestead Credit is designed to limit the tax liability for homeowners that experience rapidly rising assessments. Effective July 1, 2007, increases to assessments are limited to 8% for the County tax; prior to July 1, 2006 , the rate was 10%. The cap for each town may be different. Starting in 2008, the State will require you to apply for the credit. Please visit the State website at www.dat.state.md.us for more information on this.
Q. Is there a credit for the elderly?
A. No. However, you may qualify for the Homeowner's Tax Credit outlined above.
Q. What payment options do I have?
A. Most Homeowners will elect to make semi-annual payments. For the tax year beginning July 1, 2009, the service charge is $0. The first payment is due any time from July 1 through September 30 of the tax year. The second payment is due in December and may include a service charge if applicable. Payments received after December 31st are subject to interest and service charge. If your taxes are escrowed, your mortgage company is required to pay in semi-annual installments unless you have notified them in writing by May 1 prior to the bills being issued.
Two other payment options are available:
- You may pay your bill in full, without penalty or interest prior to September 30.
- You may elect to make three payments. The first payment must be made on or before September 30. The second and third payments must be made before March 1 to avoid additional charges. Interest is charged at the rate of 1% per month. See the back of the tax bill for more details.
In all cases, bills not paid by March 1 will be assessed a 3% late penalty. We advertise unpaid taxes 4 weeks prior to tax sale. In order to avoid being advertised, payments should be made prior to May 1. Tax sale is held the first Monday in June and will include any property whose taxes have not been paid by close of business the Friday before tax sale.
Q. Do you accept credit cards?
A. We accept Discover Card at our office counter. At this time we are unable to use any others; however, you can pay on-line using other cards through a third party agent (click here). Please note that all credit card services are through a third party and a convenience fee will be charged.
Q. Do you require certified checks?
A. Payments received after April 30 for delinquent taxes or utility bills must be paid with cash, certified check, money order or one of the credit cards listed above.
Q. I can't pay on time. My property is going up for tax sale. What is the procedure?
A. Properties with outstanding taxes will be advertised in a local newspaper four (4) weeks prior to the tax sale. During this time, you may still pay with cash, certified check, money order or credit card as listed previously. However, you may not pay on-line during this process. Certificates of unpaid property taxes are sold at the tax sale. Once the property has been sold, the owner has six (6) months to redeem his or her property by paying the back taxes, interest, and penalties. At this time, the owner must also pay the new taxes that will be billed on July 1. Additional legal fees may be incurred after four (4) months and after six (6) months the certificate holder may start foreclosure proceedings in the equity court. For additional information contact the Treasurer's Office at (410) 996-5385 or e-mail the office at phoward@ccgov.org
Q. How do I redeem my property?
A. Call the Treasurer's Office at (410) 996-5385 or e-mail us at sdondero@ccgov.org.
Q. Am I eligible for a tax credit?
A. Perhaps. There is a Homeowner's Tax Credit that is based on your income. The form must be filed with the State Assessment Office every year. Blank application forms are available in the Treasurer's Office or from the State Assessment Office. There is no credit based on age. For additional information, contact the State Assessment Office at 410-996-2760.
Q. How do I reach the State Assessment Office?
A. Local telephone: (410) 996-2760. Click here for real estate information.
Q. How is the assessment determined? I believe it is incorrect.
A. Your assessment is prepared by the State Assessment Office. Every 3 years, an assessor inspects your property and you receive an assessment notice. The assessment is 100% of the full cash value of the property. Questions regarding the assessment should be directed to the Assessment Office at 410-996-2760.
Q. What is the tax rate? Who determines it?
A. The current tax rate (effective for July 2009 - June 2010) is $1.052 per $100 of assessed value. The County's share is $.94 and the State gets $.112. The County rate is determined annually by the County's Board of Estimates (the County Commissioners). The rate is subject to change each new budget year. Town tax rates are determined by each town's governing board.
Q. What is the Bay Restoration Fee or "flush tax"?
A. Section 9-1605.2 of the Environment Article of the Annotated Code of Maryland created the Bay Restoration Fund which was established by the State of Maryland and is dedicated to improving the water quality of the Chesapeake Bay. In order to provide funding for these water improvement projects, the State has assessed a "Bay Restoration Fee" to most property owners in Maryland. The County, Town or private utility provider is required to collect this fee on behalf of the State. Just as any other property tax, this fee will be treated as a lien on your property. Nonpayment could ultimately result in tax sale.
The first part of the program began January 1, 2005, with the assessment of a $7.50 per quarter charge ($30 per year) on the sewer or water bills of property owners served by public utilities. The second part of the program became effective October 1, 2005, and requires us to collect $30 per year from property owners who have private septic systems and are not served by public water. The County has determined that adding this annual charge to the property tax bill is the most cost effective way to accomplish this.
The fee that appears on the tax bill is only for those properties that are served by some type of private septic system; payment is not required on vacant land and properties served by public water and / or sewer will be billed via the utility bill. The list of County property owners who are served by private systems was compiled from many different sources. Please contact us immediately at 410-996-5385 or via email at phoward@ccgov.org if you believe you were erroneously charged.
Questions from Tax Sale Bidders
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Q. What is the date, time and location of your tax sale? How often is it held?
A. Tax sale is held annually on the first Monday in June at 10 AM (Eastern Daylight Savings Time). The tax sale will be held in the County's Administration Building at 200 Chesapeake Blvd.
Q. How is it advertised?
A. It is advertised in a local paper of general circulation for 4 weeks prior to the sale. This year, the sale will be advertised in the Cecil Whig. It will also be advertised on the internet at www.tlcol.com/mdcc.
Q. When and how do I register for the sale?
A. You may register at the County Administration Building, 200 Chesapeake Blvd, Elkton, MD, on the day of the sale. You may also pre-register at www.tlcol.com/mdcc which will be posted in May.
Q. What are the payment requirements? Do you require a deposit?
A. Cash, personal check, or Discover Card. No deposit is required. Only the amount of taxes, interest and other associated fees including any applicable bid premium are due the day of the sale. The balance of bid will be required upon foreclosure.
Q. What is the bidding process?
A. We use an auctioneer and have live bidding. Effective with the tax sale held June 5, 2005, Cecil County will use the bid premium method as per section 14-817(b)(2)(i) of the Tax Property Article of the Annotated Code of Maryland.
Q. What is "Bid Premium"?
A. The bid premium system was designed to curb the excessive and chaotic bidding that has occurred in several jurisdictions throughout the state. If the successful bid exceeds 40% of the full cash value of a property, the bidder will be required to pay a 20% premium on the amount by which the bid exceeds that 40%. For example if the full cash value is $150,000 and the high bid is $70,000, the buyer would pay a premium of $2,000 calculated as follows: 40% of $150,000 (full cash value) = $60,000. $70,000 (bid) minus $60,000 (40% FCV) = $10,000. 20% of $10,000 = $2,000. The bid premium will be returned without interest to the buyer if the tax sale certificate is redeemed or if foreclosure is executed within 2 years of tax sale. If the property is neither redeemed nor foreclosed, the County retains the bid premium.
Q. What type of document is issued after the sale?
A. Immediately after the sale, the successful bidder will be issued a cash receipt showing the amount paid. In a few weeks the purchaser will receive a Certificate of Sale for Unpaid Property Taxes. The Treasurer's Office will notify property owners approximately 2 months after the sale if their property was sold.
Q. What is the foreclosure process? Will the County handle the foreclosure process for a fee?
A. The successful bidder may begin foreclosure proceedings six months and a day from date of tax sale if the owner has not redeemed the property. The balance of bid is due to the County when a decree has been issued to foreclose the right of redemption. The County will not handle foreclosure proceedings and it is suggested you contact your attorney for additional information.
Q. What happens to liens that are not sold at tax sale? Can they be purchased directly from the County?
A. If a property is not sold at tax sale, it may be purchased over the counter through the Office of the Board of County Commissioners. However, in recent years all liens have been sold at tax sale and we expect this trend to continue.
Q. Do you allow investors to invest in tax lien certificates without attending the auction? Can a representative bid on my behalf?
A. We only accept bids made in person the day of the sale. You may send a representative, subject to the terms and conditions of the sale. Please see the advertised legal notice or contact us at (410) 996-5385.
Q. Please send me a list of current liens available. I would like to be on your mailing list.
A. There are currently no liens available. We do not maintain a mailing list.
Other Miscellaneous Questions
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Q. Where do I direct water and sewer questions?
A. To the Cecil County Treasurer's Office at (410) 996-8057 or to ablodgett@ccgov.org.
Q. My water bill has not been paid. When will it be shut off?
A. Customers with unpaid balances on County-metered accounts will be shut off the last Wednesday of the second month following the bill date. If the water is shut off, you must pay with cash, certified check, money order, or Discover Card. A $25 penalty fee must be paid in order to turn the water back on. It should be noted that, like property taxes, utility bills are a lien against the property and therefore can be sold at tax sale.
Q. How much are dog tags, and kennel tags? When are they required?
A. All dogs in Cecil County must be licensed. The fee is $10.00 if spayed or neutered and $20.00 if not spayed or neutered. A current rabies certificate is required before a license will be issued. Kennel tags are based on the size of the kennel and must be approved by the Department of Planning and Zoning.
Q. Since I have a current dog tag does my dog need to wear this tag.
A. Yes. Citations can be issued if the dogs are not wearing tags.
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