Home Values Drop 35 Percent in Bowie Since 2008

With foreclosures driving down home prices in Prince George’s County, property values in Bowie have fallen by an average of 35 percent since 2008, when homeowners received their last assessments, one state official said Thursday.

Bowie residents, many clutching their assessment notices, came to the City Hall Thursday to understand how the complicated new realities—the economic downturn and lower real estate prices—will affect their property tax bills, set to arrive in July.

One resident asked how, “with a sweep of the pen” his home lost a quarter of its value.

“That’s what happened sir,” answered Joseph Hensley, Prince George’s County supervisor of assessments.

Hensley listened to the man talk about the lower-than-expected assessed value of his home, which he hoped to sell.

“Hopefully, we’re a little low and you can sell it for more. We try to bend over backwards and account for more depreciation. We try to be as generous as we can with the assessed value,” said Hensley.

All property in the State of Maryland is reassessed every three years. Prince George’s County is divided into three sections. Homes in area two of the county—the eastern portion which includes Bowie—were reassessed for the fiscal year that begins on July 1.

Residents asked a range of questions of Prince George's County Supervisor of Assessments Joseph Hensley during the meeting, organized by County Council Chairwoman Ingrid Turner. Prince George's County Treasury Manager Linda Allen was also on hand to help residents understand the property tax bills.

Three out of four sales in Prince George’s County have been foreclosures or short sales, said Hensley.

“If somebody can pick up a property in foreclosure or a short sale, they are going to pay less for yours,” Hensley said.

He warned residents that a drop in the assessed value of their home would not necessarily result in a “windfall” when the tax bill comes out.

The homestead property tax credit capped rates during the real estate boom to protect homeowners from steep increases in assessed values. The homestead credit limits the increase in taxable assessments each year to a fixed percentage, in effect keeping property taxes from skyrocketing as home prices soared.

Longtime homeowners, Hensley said, would be less likely to see a significant reduction in taxes.

“I know it’s not fair but in reality you’ve been paying on a much lower assessment all these years. The whole last decade when assessments were going up 20 percent you were paying on [much smaller] increases,” Hensley said.

But newer residents who have lived in Bowie for fewer than five years should expect their taxes to go down, Hensley said.

“You are going to get tax relief come July 1, 2011 because you have not been in your home long enough to establish a homestead base,” Hensley said.

For more information, go to the Maryland Department of Assessments and Taxation's website http://www.dat.state.md.us/ - You can also view a recording of last week's tax assessment forum on the City of Bowie's website.