The Maryland Department of Assessments and Taxation is reaching out this month to property owners and renters to encourage them to apply online for tax savings and credits for which they may be eligible. File. (Getting Images). (peepo / Getty Images)

The first Monday in September is associated with a number of traditions including, of course, a celebration of the achievements of American workers and the labor movement. For many people, it’s a milestone date on the calendar — the traditional end of summer and the start of the school year — that’s also done double duty as a kind of chore reminder. Labor Day is often cited as one of two times of the year to replace the batteries in household smoke detectors. But, as it happens, Labor Day is also an excellent time for Maryland residents to check on something else that too often gets neglected: property tax credits.

No doubt, many of us assume property taxes are a straightforward affair. You buy a home, and you get a bill for combined local and state taxes. It’s often wrapped up in the escrow account of your mortgage payment. But here’s where things get a little tricky: Maryland property owners (and renters) may be eligible for some help — but only if they apply for it. Here are three that shouldn’t be overlooked

The first offers the biggest bang, the Maryland Homestead Tax Credit. If your property is your primary residence and you have lived in it for at least 12 months, you can apply for the program, which limits how much your tax assessment can go up each year. Over time, the savings on your taxes can add up spectacularly.

Second, the Homeowners’ Property Tax Credit Program (also known as the “circuit breaker”) limits property taxes by the owner’s gross income. In other words, it tries to protect people of modest means, often seniors on a fixed income, from the possibility that rising home values could make their home unaffordable. Make no mistake, this isn’t a giveaway to just anyone who owns a home. All sources of income are considered (including Individual Retirement Accounts, 401(k)s and Social Security), and your total net worth must be under $200,000. In 2021, about 38,000 property owners qualified for a credit that averages $1,465 for a total of $55 million.

The third is directed at people who rent. The Maryland Renters’ Tax Credit Program is the non-owners equivalent of the circuit breaker, and its meant to compensate renters for paying property taxes on behalf of the dwelling’s owner. To put it simply, if a portion of the rent that goes to pay property taxes exceeds a certain sum in relation to income, the renter can receive a credit of up to $1,000 annually. Last year, the top income was $73,000 and eligibility required rent of at least $2,000. In 2021, about 7,525 people received an average of $446 for a total of over $2.9 million.

If all that sounds complicated, you are correct. And tens of thousands of people who are eligible for these benefits likely never fill out the paperwork. But the good news is that the Maryland Department of Assessments and Taxation has made it easier than ever to submit an application. And that’s where Labor Day comes in. The deadline to get in on the Homeowners’ and Renters’ programs each year is Oct. 1, so now is the time to apply. And the agency has an online presence to provide applications. Just go to https://onestop.md.gov and click on the link for the Department of Assessments and Taxation. Once you submit, it usually takes 30 to 90 days to find out if you’ve been approved.

It’s unfortunate that homeowners and renters have to jump through so many hoops to get the help, but there’s something to be said about carefully targeted the assistance so that it’s directed toward those who need it most. Meanwhile, Labor Day can be a reminder of the importance of keeping one’s financial house in order. Oh, and it’s still a great moment to change those smoke detector batteries — and again with the start of daylight saving time in the spring — given how much those trusty devices have saved.

Baltimore Sun editorial writers offer opinions and analysis on news and issues relevant to readers. They operate separately from the newsroom.