How are houses assessed?

Asked by ., Maryland Thu Sep 25, 2008

I'm planning on buying a home soon but have a few questions regarding property taxes. Will the assessed value of the house be the purchase price at least for the first year? Looking at the 2007 tax records for one specific house I see that it was assessed at $500k in 2007 however the list price now is $450k and I believe I can get it for around $420k . Would my property tax be based on the purchase price of $420k?

I also noticed the owner got the homestead tax credit the past 2 years. The house was built and purchased in 2005 with a assessment value of $360k, in 2006 it was $430k, and in 2007 it was $500k. Would I be eligible for the same homestead tax credit?

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