"Why is my neighbor's fee less than mine?" The Columbia Association lists that question in its own annual charge FAQ, and its answer explains a carrying cost many Columbia buyers miss. The bill depends on values from the State Department of Assessments and Taxation and on "the timing of its purchase." In the first year after a sale, CA bases the new owner's fee on the state's phase-in value. A neighbor who has owned for years started from a different value, which "could result in a lower bill."
The caps that hold down a long-time owner's CA charge and Howard County property tax protect that owner. They don't stay with the house. When the deed changes hands, both caps go away. That means the annual charge and tax figures a seller passes along can understate what a buyer will actually pay, and the 2026 reassessment cycle gives that gap more room to grow.
The bill moves with the assessed value
The formula has stayed the same for a long time. CA charges 68 cents for every $100 of 50% of a property's state-assessed value. CA says the rate hasn't changed since 2004 and that yearly increases are capped at 3.5%. CA's FY2027 budget book keeps both numbers for the budget year running May 1, 2026 through April 30, 2027. It also lists the maximums the board could set: 75 cents and a 10% cap.
With the rate fixed, the bill moves only when the assessed value moves, and the cap limits how fast that can happen. The cap has been 3.5% since 2016. CA's FAQ states the exception plainly: "The cap is not applied to property the first year following a purchase. Instead, the state's phase-in value is used that year to calculate the annual charge, and that value may be higher than the previous owner's last value."
CA's own worked examples show the size of the gap:
| Scenario from CA's FAQ | Value CA bills on | Annual charge |
|---|---|---|
| Home assessed at $400,000 | $200,000 | $1,360 |
| Value rises 10% to $440,000, cap applied | $207,000 | $1,408 |
| Same $440,000 value, no cap | $220,000 | $1,496 |
The middle row is what a continuing owner pays. Because the cap doesn't apply in the first year after a purchase, a buyer's bill is based on the phase-in value, much like the bottom row. This example covers a single 10% increase. CA notes that after big jumps in assessed value, "it still takes quite a few years to catch up." So an owner who has held a home through several rising assessments may be paying on a value well below the one the next buyer inherits.
Property tax follows the same reset
The county tax bill works the same way, on a larger scale. Maryland's Homestead Tax Credit limits how much the taxable assessment on an owner's principal residence can rise each year. State law caps the increase at 10%, and counties can set a lower cap. Howard County's cap for July 1, 2026 is 5%, and it applies only to owner-occupied homes.
The SDAT Homestead page lists the conditions for the credit, and the first one is that "the property was not transferred to new ownership" during the previous tax year. New buyers have to establish eligibility themselves. SDAT mails a Homestead application once the new deed is recorded. Under a 2021 state law, residential sale contracts must include a notice that buyers who plan to live in the home may qualify for the credit, and the settlement agent must hand the buyer a copy of the application at closing.
So a Columbia buyer faces two separate resets that happen at the same moment:
| Columbia Association charge | Howard County property tax | |
|---|---|---|
| Who sets the cap | CA Board | Howard County, under state law |
| Cap for the current year | 3.5% | 5% for July 1, 2026 |
| What happens at sale | Cap skipped in the first year after purchase; phase-in value used | Credit requires no transfer to new ownership in the prior year |
| Who bills it | CA, separately | Howard County |
Howard County says on its property tax FAQ that CA levies its annual assessment on Columbia properties and that the county neither bills nor collects it. This means the county tax figure in a listing doesn't include the CA charge. The county's FY2027 schedule, effective July 1, 2026, lists these rates per $100 of assessed value: county $1.044, state $0.112, fire $0.206, and ad valorem $0.08. For a sense of scale, every hypothetical $10,000 of assessed value the seller had been shielded from adds about $104 a year at the county rate alone.
Why 2026 makes the gap larger
A cap only matters when assessments rise faster than it allows, and Howard County's most recent reassessment did. SDAT mailed Group 2 notices on December 30, 2025. From the January 1, 2023 base to the January 1, 2026 reassessment, Howard County's residential full value grew 16.8%. The statewide figure for Group 2 residential properties was 13.2%.
SDAT phases increases in evenly over three years, while decreases take effect right away. On a 16.8% increase, each yearly step is about 5.6%. That's above CA's 3.5% cap and above Howard's 5% Homestead cap. For a home in that group, a continuing owner's billed value falls a little further behind the phase-in value each year of the cycle. A buyer starts on the phase-in value. The longer a seller has owned and the more reassessments they've held through, the bigger the difference tends to be.
Howard County is split into three reassessment areas on different schedules. Area 2 was reassessed January 1, 2026. Area 3 is next on January 1, 2027, and Area 1 follows on January 1, 2028. Before making an offer, you can look up a specific property in SDAT's Real Property database to see its current phase-in value and Homestead status, then compare them with the seller's bills.
The board debated the rate, so the assessment carries the change
The rate itself was on the table in December. At its December 11, 2025 meeting, the CA Board heard Senior Vice President and CFO Shon McCollum present the proposed FY2027 rate and cap. Board Member Eric Greenberg moved to lower the rate to 62 cents, and that amendment failed 3–6. A second Greenberg amendment, to set the cap at 2.5%, also failed 3–6. In both votes, Reginald Avery, Karin Emery and Greenberg voted in favor, and Skye Anderson, Michael Golibersuch, Delilah Holmes, Bill Santos, Collin Sullivan and Ashley Vaughan voted against. The original motion to keep 68 cents and 3.5% then passed 6–3.
For FY2027, the rate and cap are settled. For buyers, the variable that matters this year is the assessed value their bill is based on. They have no influence over the rate and can't benefit from the cap during their first year of ownership.
What changes at the settlement table
The charge also has some transaction mechanics that catch people off guard:
- It's a lien on the lot. CA's recorded 1966 Declaration makes the annual charge a continuing first lien, subject only to public tax liens that rank above it. Any owner who held title for part of a year is personally liable for that year's charge.
- CA issues a paid-status certificate. If the owner asks in writing, CA will issue a certificate showing whether charges are paid or how much is owed, and CA may charge a reasonable fee for it.
- State resale disclosures apply. According to CA's own 2019 legal analysis, the resale section of Maryland's HOA Act applies to a Community Benefit Association like CA. That section, 11B-106, requires disclosures about fees, assessments and governing documents, delivered at contract signing or within 20 days after. After the sale, the seller must notify the association within 30 days, including any proportionate share of outstanding assessments each party assumed.
- The billing cycle doesn't line up with a closing date. CA bills for July 1 through June 30. Payment is due within 30 days, and unpaid balances accrue interest at 0.50% a month.
- Records lag behind the deed. CA gets ownership data from SDAT monthly and updates its records only after the deed is recorded, so the seller may still receive invoices after closing.
- Escrow isn't guaranteed. CA says many lenders escrow the annual charge and some don't. The CA annual charge page has an EscrowCheck tool that shows whether a lender payment has arrived.
Quick answers
Does every Columbia home pay the annual charge? CA says the charge applies to property protected by CA covenants, and the deed on those properties requires payment.
Do county tax credits reduce the CA bill? Some do. Owners who receive a Howard County property tax credit can get a proportionate credit on their CA bill, but they have to send CA the county credit in writing every year. CA says state and county Homestead credits don't qualify.
Does the annual charge cover pool and fitness memberships? No. CA says the annual charge covers only slightly more than half the cost of its services, so pools and fitness clubs charge their own dues. Residents pay lower dues than non-residents.
This post is general information, not legal, tax or financial advice. Please confirm your own assessment, credits and contract terms with your settlement attorney, title company, lender or tax professional.
If you're comparing Columbia homes and want a full first-year cost estimate before you write an offer, with the CA charge at the phase-in value, county tax without the seller's Homestead cap, and how your lender will escrow both, The DMV Dream Team will go through the numbers with you. Schedule a free consultation, and we'll run them for the specific homes on your list.
