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Commissioners adopt constant-yield rates after debate on tax cut
Summary
The St. Mary's County Commissioners voted to set the real property tax rate at the constant-yield rate of 0.8523 and the corresponding personal property rate at 2.13075 after discussion about using fund balance and proposed tax relief; the motion passed with three ayes and one nay.
St. Mary's County Commissioners voted to set the real property tax rate at the constant-yield rate of 0.8523 and to set the personal property tax rate at 2.13075 during their May 4 budget work session. The motion passed in a roll-call-style sequence of “Aye. Aye. Aye.” followed by a single “Nay.”
The vote followed a wide-ranging budget review presented by finance staff, which showed current revenues totaling about $226.3 million and projected expenses at roughly $225.0 million, leaving a gap the board needed to close. Commissioners debated using fund balance and reducing the tax rate as a form of taxpayer relief. Commissioner Morgan argued for lowering both rates, calling it “a step in the right direction” and citing increased revenues and lower gas prices as support. Commissioner Hewitt opposed stepping down to the lower rate, saying the county had made large spending commitments and that reducing rates now would be “much too risky for the future.”
Finance staff explained a technical constraint from the Department of Assessments’ constant-yield guidance: the personal property rate cannot exceed 2.5 times the real property rate, which limited how the commissioners could change both rates together. Commissioners discussed a phased reduction of the personal property tax over three years as an alternative; the board ultimately set the rates to the constant-yield values identified by staff (real 0.8523; personal 2.13075).
The tax-rate action was taken as part of a larger effort to balance the 2016 general fund budget. Finance staff reported that the board had approved approximately $5.1 million in additions since the recommended budget, $4.7 million of which was funded from fund balance and the remainder covered by increased revenues or realignments. Commissioners directed staff to return a balanced set of formal budget documents at the next meeting.
The commissioners did not attach a specific ordinance number to the rate change during the session; staff said the balanced budget package and the required appropriations and revenue ordinances would be brought back for formal adoption in the next meeting.
