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St. Mary’s County keeps constant-yield property tax rate after 3–2 vote

2139003 · January 22, 2025
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Summary

The St. Mary’s County Board of Commissioners voted 3–2 on May 2 to maintain the county's current constant-yield property tax rate rather than reduce it, after a lengthy discussion about long-term fiscal impacts and borrowing needs for capital projects.

The St. Mary's County Board of Commissioners voted 3'to'3 on May 2 to keep the county's current constant-yield property tax rate, rejecting a proposal to reduce it.

Commissioners debated the long-term effects of lowering the constant-yield rate, with proponents of keeping the rate arguing that small annual cuts compound and reduce revenue available for capital needs such as roads, public safety and school facilities. Commissioner Todd Morgan presented a multi-year illustration showing how repeated reductions would cumulatively lower county revenue by several million dollars over time and complicate funding for planned projects.

Supporters of cutting the rate argued that returning revenue to taxpayers when the county is seeing assessment and income growth is appropriate. Speakers who favored a tax cut said the county should return surplus revenue when possible and noted recent assessment gains and projected additional revenue.

After discussion, a motion to maintain the current constant-yield rate passed on a roll-call tally of 3 in favor and 2 opposed. The commissioners did not record a full roll-call with individual yes/no votes in the transcript; the meeting record shows only the overall tally.

Nut graf: The board's decision preserves near-term revenue that officials say will be needed to meet capital project commitments and rising operating obligations; commissioners who opposed the motion said they preferred returning some funds to taxpayers given recent assessment increases.

Board members also discussed the schedule and legal advertising deadlines that would apply if they chose to advertise a change. Staff noted that a decision to reduce the rate after the public hearing would require a 7-day advertising period and could push final budget approval later in May, with implications for the county's appropriation timetable.

The vote leaves in place the rate used in the recommended budget and preserves an estimated $566,050 in revenue that would have been reduced under the proposed cut. County staff said they would continue to monitor new assessment figures and would return with updated revenue estimates before final budget adoption.

Ending: The budget schedule calls for final approval before the end of May; commissioners directed staff to carry forward the operating and capital budget materials with the current constant-yield rate in place and to provide any updated assessment information at the next work session.