The carrying costs on a Columbia listing are the seller's costs. Those figures reflect years of assessment caps that shielded the owner from rising values, and none of that protection transfers at settlement. The Columbia Association says its annual charge cap "is not applied to property the first year following a purchase." In that first year it bills on the state's phase-in value, which "may be higher than the previous owner's last value."
The county tax bill works on a similar principle under a different set of rules. Together, these rules mean the new owner's first bills after a sale can be higher than the seller's, even when the rates haven't changed. This fall the timing makes that more likely, because Howard County is partway through a reassessment that is still phasing in.
Three caps, and none of them convey
A Columbia homeowner who has stayed put for several years pays bills held down by three separate limits. Each is tied to ownership, so each stops applying when the property changes hands.
| Limit | Applies to | Current level | At a sale |
|---|---|---|---|
| Columbia Association annual charge cap | CA annual charge | 3.5%, in place since FY 2017 | Not applied in the first year after purchase |
| Howard County Homestead cap | County property tax | 5% for FY2027 | Credit is not portable; new owner must apply |
| Maryland Homestead cap | State property tax | 10% | Same eligibility rules as the county credit |
For the Homestead credit, the Maryland Department of Assessments and Taxation lists the conditions on its Homestead Tax Credit page. One is that the property did not transfer to a new owner during the previous tax year. SDAT says it mails an application to new purchasers after the deed is recorded. The home must be the owner's principal residence, and the owner has to meet SDAT's occupancy test.
So the credit does not pass from seller to buyer. The buyer starts over, and the starting point is the current assessment rather than the seller's capped figure.
How the CA charge is built, and where the cap stops
The Columbia Association's annual charge has two parts. SDAT supplies the property assessment, and the CA Board sets the rate. The rate is 68 cents for every $100 of half the state-assessed value. It has not changed since 2004 and sits below the maximum of 75 cents. CA's own example: a home assessed at $400,000 is charged on $200,000, which comes to $1,360 a year. Put another way, the charge works out to 34 cents per $100 of the full state assessment. That is a useful shorthand when you set it beside the county tax rate.
The cap is where long-term ownership matters. In CA's FAQ example, a home whose value rises from $400,000 to $440,000 is assessed for the charge at $207,000 rather than $220,000, so the owner pays $1,408 that year instead of $1,496. Over several years that gap widens for an owner whose home keeps gaining value. The FAQ says assessed value cannot rise faster than the cap "unless there are significant improvements made to the property and/or the ownership of the property changes during a given year."
The same FAQ says CA follows "the same methodology as Howard County and the state in applying a cap to increases in property value." A change in ownership affects both bills. For the CA charge, the cap is not applied in the first year after the purchase. For county tax, a transfer during the previous tax year makes the property ineligible for the Homestead credit until the new owner applies and qualifies.
The reassessment makes the gap wider right now
Assessments in Howard County are rising. SDAT's January 1, 2026 reassessment report shows Howard County's Group 2 residential full cash value up 16.8% from the January 1, 2023 base. Commercial rose 7.6%, and the combined figure was 14.8%. That is an aggregate for one reassessment group. It is not a Columbia average, and it does not predict any single home's assessment.
SDAT phases increases in evenly over three years, while decreases take effect immediately. On Howard County's fiscal calendar, that puts the increase in the FY2027, FY2028 and FY2029 bills. The county's FY2027 budget book describes the 14.8% combined increase as roughly 4.9% a year on average. It also says the local Homestead credit holds growth in county property tax on owner-occupied homes to 5% a year.
For an owner who stays, a 3.5% cap on the CA charge and a 5% cap on county tax absorb much of that increase. A buyer who closes during the phase-in starts from the phased-in value with no cushion. In homes with the largest assessment gains, the difference between the seller's bill and the buyer's could be large.
Flat rates, rising revenue
Howard County's tax schedule effective July 1, 2026 lists a county rate of $1.044 and a state rate of $0.112 per $100, for $1.156 before special charges. A countywide fire tax of $0.2060 per $100 is added. Property inside the Metropolitan District pays an extra $0.08 per $100 ad valorem charge. The county's FY2027 budget kept the $1.044 real property rate the same.
The CA rate has also held steady. At its December 11, 2025 meeting, the CA Board approved the FY2027 rate and cap 6–3. Amendments to lower the rate to 62 cents and the cap to 2.5% each failed 3–6. FY2027 runs from May 1, 2026 to April 30, 2027.
Even with flat rates, the revenue keeps growing. The FY2027 budget projects annual charge revenue 2.9% above FY2026. CA's September 16, 2026 first-quarter letter reported annual charge revenue $1.3 million, or 3%, ahead of the same quarter a year earlier. That growth comes from rising assessments working through the cap. A flat rate with growing revenue means individual bills are rising, and new owners, who start without a cap, see the rise first.
What the charge pays for, and what it doesn't
The charge is the main funding source for Columbia's shared open space. CA's FAQ cites nearly 3,600 acres of open space, 95 miles of pathways, lakes, ponds, tot lots and athletic courts, along with free events and programming. Recent spending is easy to see around town. CA's FY2026 annual report lists $1.3 million in Lakefront enhancements including the new Lakefront Stage, $1.8 million for dredging Lake Kittamaqundi, $1.4 million for pathway work and $730,000 for reimagined play areas. The FY2027 capital budget includes $450,000 to replace the Running Brook Pool pumphouse and make ADA improvements, $630,000 for play areas across Columbia and $700,000 for pathway replacements.
The charge does not include pool or fitness club memberships, which CA prices separately. CA also says annual charge revenue covers only slightly more than half of its service costs. A household planning to use the pools should budget the annual charge and the membership as two separate costs.
Why the market leaves little time to work this out
Howard County sold quickly this fall. In September 2026 the county had 250 closed sales, down 19.1% from September 2025. The median sold price was $615,000, down 0.8%. Median days on market was 12, according to Maryland REALTORS' September 2026 housing statistics. The Howard County Association of REALTORS' September report puts average days on market at 29, up 26.1%. The average and median measure different things. A typical home still goes under contract within two weeks, while some take much longer and pull the average up.
These are countywide figures. They are not broken out for Columbia's ZIP codes. Prices have been flat over the year and sales are down, so monthly cost carries more weight in a buyer's math than it did when prices were climbing quickly. When a home is under contract in under two weeks, there is rarely time to rebuild its carrying costs from scratch. The faster approach is to compare the listing's current state assessment with the capped figures on the seller's bills before writing an offer. That comparison is also where the size of the reset shows up.
A few questions that come up in Columbia transactions
Does the CA charge show up in my mortgage escrow? Sometimes. CA says many lenders escrow the annual charge the same way they escrow property taxes and insurance, but not all of them do. CA mails invoices by July 1 for a billing year that runs July 1 through June 30. Payment is due within 30 days, and unpaid balances accrue interest at 0.50% a month.
If I qualify for a county tax credit, does CA apply it automatically? No. CA asks owners to send a copy of their Howard County tax bill every year to show a senior, homeowner's or veteran's credit, and it recalculates the charge from that bill.
Who sends the CA bill? CA sends it directly. Howard County's property tax FAQ says the county uses the same state assessments but does not bill or collect the CA assessment. CA updates ownership records from monthly SDAT data after the deed is recorded, so a seller may keep receiving invoices for a short time.
What happens to an unpaid charge when a home sells? CA's recorded declaration treats the charge as a continuing lien on the property. It makes each owner personally liable for charges assessed during any part of the year they hold title. It also provides for a written certificate of paid or outstanding charges that a buyer or lender can rely on. How the charge is split between buyer and seller at closing is worked out in each transaction, so ask your settlement company how it will be handled on yours.
This post is general information, not legal, tax or financial advice. Confirm how these rules apply to your property with your settlement attorney, tax advisor or lender.
If you are comparing a Columbia home with others in Howard County, we can pull the current state assessment and the seller's capped bills before you write an offer, so your monthly budget reflects what you will actually pay. When you're ready, The Fredeking Team would be glad to walk through the numbers with you. Work With Us.
