Calvert County keeps town tax differential for Chesapeake Beach and North Beach

The Calvert County Board of Commissioners voted to maintain the existing county property tax differential of 0.336 per $100 of assessed value for residents of the towns of Chesapeake Beach and North Beach for fiscal year 2026.

County staff from the Department of Finance and Budget summarized the legal basis and the fiscal effect, telling the board that state law allows municipalities to request a reduction in the county property tax rate because town residents also pay a town property tax for services the town provides. Staff said the county's FY2025 real property tax rate is 0.967 per $100 of assessed value and that the proposed FY2026 budget did not propose an increase to the county rate. The board then voted to keep the tax differential at 0.336 per $100 assessed value for the coming fiscal year.

The mayors of both towns addressed the commissioners before the vote. The mayor of North Beach described the tax differential as “huge” for town residents and thanked the board for continued support, saying town services relieve county responsibilities. The mayor of Chesapeake Beach said the town has had recent administrative turnover and new council members, and thanked the commissioners for maintaining the differential while town leadership transitions. Both mayors said they look forward to continuing coordination with the county; staff requested that the towns submit a detailed proposal for the FY2027 tax differential request.

The board adopted the motion by voice vote; the record shows the motion carried after an aye vote.

Why it matters: The tax differential reduces the county portion of the property tax for residents inside the two incorporated towns to reflect services the towns provide directly, a practice the county says prevents double taxation and preserves municipal service arrangements. County staff advised that, for FY2027, towns should submit a detailed proposal stating the desired level of the property tax setoff for the next fiscal year.

Details: County staff framed the differential as an annual reduction to county revenues tied to services towns provide. The staff memorandum recommended maintaining the current differential for FY2026 and requested that the board ask the towns to submit proposals for FY2027. During discussion commissioners thanked the mayors and emphasized continuing communication between the towns and the county.