Commissioners vote to reduce Homestead Property Tax Credit rate from 3% to 0%, effective July 1, 2026

Worcester County commissioners voted unanimously on Oct. 21 to reduce the Homestead Property Tax Credit cap from 3% to 0%, with the change scheduled to take effect July 1, 2026.

The public hearing drew speakers in favor of the reduction. Vince Gisriel Jr. (14008 Sailing Road, Ocean City) applauded the action and noted Ocean City and other municipalities in Maryland already use a 0% cap; he said the change would provide meaningful tax relief to local residents.

Why it matters: the Homestead Property Tax Credit limits how quickly a principal residence’s assessed value can grow for property‑tax purposes. Lowering the cap to 0% limits assessment increases for qualifying homeowners and can reduce tax pressure on long‑term residents and renters, although commissioners warned it could affect future county revenue and budgets.

Commissioner Bertino moved to approve the reduction and Commissioner Matresick seconded. Commissioners spoke in favor but several said they were concerned about long‑term budget implications and the county’s reliance on nonresident taxpayers, particularly in resort areas that generate substantial revenue.

Commissioner Metresick emphasized the policy’s importance to renters and lower‑income residents who could see indirect benefits if landlords do not raise rents in response to lower property taxes. Commissioner Abbott encouraged eligible residents to apply for the homestead credit through the state system.

The ordinance adopted a 0% cap and specifies the effective date of July 1, 2026, as stated in the public hearing materials.

Ending: Commissioners approved the change unanimously and directed staff to implement the administrative steps to apply the new cap for the 2026-27 tax year.