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Commissioners keep current tax rate and approve homestead cap change; senior tax credits and property‑tax reductions debated
Summary
St. Mary’s County managers reviewed multiple property‑tax credits, recommended keeping the current tax rate rather than shifting to constant yield, and commissioners agreed to move the homestead cap from 5% to 3% beginning July 1, 2019; senior tax credit levels and budget impacts remain under review.
St. Mary’s County commissioners on March 5 reviewed several property‑tax credit programs and opted not to adopt the constant‑yield tax rate advertised by the assessor, while moving forward with a change to the homestead cap.
County staff outlined the key credits: the age‑65 property tax credit (65/40 or veteran rule) that can be capped up to 20% under state law but was locally set at 10%; a separate matching senior tax credit; and the Maryland homeowners property tax credit and homestead tax cap. Staff reported that applications and use of these credits fluctuate year to year and provided updated collections and projections for FY2020.
Commissioners discussed the homestead cap: staff noted the board had taken action the prior week to change the cap from 5% to 3% effective July 1, 2019. Staff illustrated the effect on a median home example and the aggregate budget impact. Commissioners were told the county’s revenue reduction from current credits is on the order of $1.36 million; changing the cap from 5% to 3% would further reduce revenue by approximately $78,000 (presented as an additional $78,000 but described in context as coming on top of an estimated near $400,000 impact). Commissioners agreed staff would finalize the required resolution and advertisements in time for the public hearing in April.
On the question of the constant‑yield rate—which would have adjusted the tax rate to keep revenue flat after reassessment—few commissioners favored moving to that approach at this time. Commissioners generally preferred holding the current rate and advertising it for the public hearing.
Ending: Staff will place the homestead cap change and the tax‑rate ad in the public notice and provide final numbers and a resolution at the board’s next meeting.
