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Gaithersburg staff recommends 2026 priorities: modernize municipal revenue, enable out-of-cycle commercial appeals to SDAT, pursue state funds for municipal-com
Summary
City staff recommended three legislative priorities for the 2026 Maryland session: support a municipal revenue modernization effort (including possible admissions and amusement tax), enable out-of-cycle appeals to SDAT for large commercial value changes, and pursue state funding for the new municipal complex at 12 South Summit.
City staff presented proposed legislative priorities for the 2026 Maryland General Assembly session to the Gaithersburg mayor and city council on Oct. 6, recommending a coordinated push on modernizing municipal revenue streams, enabling out-of-cycle assessment adjustments at the State Department of Assessments and Taxation (SDAT) for large commercial value changes, and pursuing state funding for the city’s new municipal complex at 12 South Summit.
On revenue modernization, staff proposed aligning the city with the Maryland Municipal League’s (MML) priority to expand municipal authority to diversify revenues. Staff referenced prior bills seeking authorization for a local admissions and amusement (A&A) tax of up to 2 percent on specified food and beverage sales at events; similar measures were introduced in 2024–2025 but did not advance. Staff suggested alternatives could include a blue-ribbon commission or other policy vehicles and recommended Gaithersburg piggyback on MML’s broader effort rather than backing a single revenue stream immediately.
On assessments, staff proposed allowing SDAT to adjust commercial property assessments out of the triennial cycle when sales or property changes increase value by more than 20 percent, or alternatively enabling local governments to file an out-of-cycle appeal. Staff said the goal is to ensure commercial tax collections reflect near-term market values instead of waiting up to three years for reassessment.
Finally, staff recommended actively pursuing state funding to support construction of the municipal complex at 12 South Summit, noting the city had secured $500,000 in bond bill funding in the prior session but would need additional state support to complete the project.
Councilmembers generally expressed support for the broad revenue-modernization objective and for pursuing state funds for the municipal complex. Staff said details would be developed with MML and the city’s lobbying team over the coming months before finalizing formal priorities for the legislative session.
