Saint Mary's County reviews senior property tax credits and potential adjustments

The St. Mary's County Budget Work Session held on March 4, 2025, focused on critical discussions regarding the county's financial strategies, particularly concerning property tax credits and adjustments to the homestead tax cap.

The session began with a review of the homestead cap analysis, where officials discussed the potential for adjusting the cap from its current 3% to either 2%, 2.5%, or 2.75%. However, consensus among the commissioners indicated a preference to maintain the cap at 3% for the time being, citing uncertainty about the implications of such changes on revenue. The deadline for any adjustments was noted as March 15, prompting a decision to hold steady for now.

Following this, the discussion shifted to the energy tax history, where the commissioners reviewed the recent reduction of the energy tax rate from 1.25% to 0.3125%. The impact of this change on the county's budget was acknowledged, with a projected revenue of approximately $300,000. The commissioners expressed a desire to keep the tax at zero for the time being, allowing flexibility for future adjustments if necessary. A deadline for final decisions on this matter was set for June 1.

The meeting also included a detailed analysis of the county's senior tax credits, presented by Jalen Hauser. The analysis covered three specific tax credits available to seniors: the Senior Matching Tax Credit, the Senior Cap Tax Credit, and the 65-10 Senior Tax Credit. The Senior Matching Tax Credit serves as a local supplement to the statewide Homeowners Tax Credit, providing financial relief based on household income. The Senior Cap Tax Credit allows eligible seniors to freeze their property tax at a certain level, while the 65-10 Senior Tax Credit offers a 10% reduction on property taxes for seniors who meet specific criteria.

Hauser highlighted the potential for changes to these credits, particularly the 65-10 Senior Tax Credit, which currently has stringent eligibility requirements. There was a proposal to raise the assessed value limit for this credit from $400,000 to $500,000 to better accommodate seniors in the current housing market. The commissioners acknowledged the need for further analysis on the financial impact of such changes.

In conclusion, the work session underscored the county's cautious approach to budget adjustments, particularly regarding property taxes and senior tax credits. The commissioners agreed to revisit these discussions in future meetings, with a focus on balancing the budget while providing necessary support to the community.