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St. Mary’s County commissioners keep 3% homestead assessment cap after debate
Summary
After extensive discussion about senior homeowners and long‑term fiscal effects, commissioners maintained the existing 3% homestead assessment cap for FY2023; staff provided counts of how many properties would receive credit under alternative caps and estimated the near‑term revenue impact of lower caps.
LEXINGTON PARK, Md. — St. Mary’s County commissioners on Feb. 15 voted by consensus to retain a 3% annual cap for the homestead property‑tax credit for FY2023 after a lengthy discussion about impacts on seniors and county revenue.
Why it matters: the homestead assessment cap limits how much a primary‑residence taxable assessment can increase year to year for qualifying properties; changing the cap affects how many homeowners receive the credit and the county’s near‑term revenue.
Staff supplied reference material showing approximately 47,458 taxable primary‑residence properties on the July 1, 2022 roll. Under the county’s estimates, about 7,075 properties would be eligible for the homestead credit at a 3% cap. Changing the cap to 2% would increase the number of recipients to about 11,594, and a 1% cap to about 16,304 properties. Finance staff also said that dropping the cap to 2% would reduce county revenue for FY2023 by approximately $229,849 (staff characterized these as estimates and dependent on final assessments and growth).
Commissioners debated the tradeoffs: some argued that lowering the cap would help seniors and households on fixed incomes, while others warned the change is accretive — the number of recipients would grow over time — and that property‑tax increases on non‑primary residences and commercial property also supply offsetting revenue. After discussion, the commission maintained the existing 3% cap for the coming year. Deputy Director Jody Kwosney summarized next steps and said staff will incorporate the decision into the FY2023 revenue package.
Ending: Staff will reflect the 3% homestead cap decision in the March revenue update and provide any additional counts or sensitivity tables requested by commissioners.
