Residential property values rose an average of 4.8% in parts of Montgomery County, including Bethesda and Chevy Chase, as part of a state reassessment process.
The average increase for commercial properties in the same parts of the county was 16.5%, one of the largest gains of any jurisdiction in Maryland. The combined average for residential and commercial properties was an increase of 7.6%.
The state updates property values every three years, dividing each county and Baltimore City into three parts on a staggered schedule. Every three years, one of the three parts is reassessed.
This year’s reassessment in Montgomery County was in two areas:
- in the southern part of the county, including Bethesda, Chevy Chase and Potomac
- a north-south swath that include Olney and Damascus
Notices of new values were mailed to owners of properties in those areas on Dec. 27.
A chart prepared by the Maryland Department of Assessments and Taxations shows that 95,113 residential and commercial properties in the county were included in the reassessment — and 77.5% rose in value. Of those, 89,989 were residential properties, of which 81.6% increased in value.
In the same sections of Montgomery County, overall property values rose an average of 7.8% in the 2017 reassessment and 11.0% percent in the 2014 reassessment. Those properties dropped an average of 14.5% in value in the 2011 reassessment.
Montgomery County increases this year were less than the state average of 7.3% for residential properties, but higher than the state average of 13.5% for commercial. Only two counties — Anne Arundel and Wicomico — saw greater gains in commercial property values.
The overall increase for all properties reassessed in Maryland this year — roughly one-third in each of the 23 counties, plus Baltimore City — was 8.9%, with 76.7% rising in value, according to the state.
“All 23 counties and Baltimore City experienced an increase in residential and commercial properties for the second consecutive year, which is a good indicator the market remains strong and growth is steady,” Michael Higgs, the director of the state Department of Assessments and Taxation, said in a press release.
All Maryland counties and Baltimore City have a Homestead Tax Credit cap in place for how much a residential assessment can increase for tax purposes. Montgomery and two other counties have a 10 percent cap, the highest allowed.
There also is Homeowners’ Tax Credit provided to eligible homeowners, setting a limit for tax payments based on income.