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SS/semiannu.pr Contact: Tim Firestine or Dick Duthoy, 301-217-2042
HOMEOWNERS CAN PAY TAX BILL
SEMIANNUALLY UNDER NEW LAW For Immediate Release: May 31, 1996
Montgomery County's Department of Finance reminds homeowners that, under
a recently enacted State law, they now have the option of paying real estate
taxes on their owner-occupied residences in semiannual installments.
Homeowners who opt to convert to the semiannual tax payment system will
pay a service charge with the second installment. The service charge consists
of an interest charge -- representing the County's lost investment income --
and an administrative fee to pay for the operation of the new system. The
interest charge for the next year will be 6.25 percent and the administrative
charge will be 25 percent of that amount, or 1.56 percent, for a total
annualized charge of 7.81 percent. Because the second installment is due on
January 31, 1997, the service charge is calculated for only four months --
from October 1, 1996 through January 31, 1997.
Taxpayers may elect to pay semiannually as late as September 30.
However, the law provides that homeowners whose mortgage lenders escrow and
pay their taxes must give the lenders 60 days notice in order to give the
lenders time to send in the first semiannual installment.
Taxpayers of owner-occupied residences who would like to begin making
semiannual payments should contact the Montgomery County Department of
Finance, Division of Revenue, 101 Monroe Street, 5th Floor, Rockville, MD
20850. Homeowners who escrow their taxes with a mortgage lender should
contact their lenders or payment processors. For more information, call
(301) 217-2920. The TTY/TDD number is (301) 217-6641.
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