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Resident urges council to adopt lower homestead assessment cap to curb steep tax increases
Summary
A longtime resident asked the Annapolis City Council to adopt a lower cap on annual assessment growth for owner-occupied homes, citing recent triennial assessment increases and a March 25 state notification deadline.
John Hammond, a longtime Annapolis homeowner, told the City Council on Feb. 10 that the council should adopt a lower cap on annual assessment growth for owner-occupied homes to limit steep increases in the city portion of property tax bills.
Hammond said Maryland’s Homestead Property Tax Credit includes an option for local governments to set a cap below the statutory maximum and cited Anne Arundel County’s 2% limit as an example. He told the council last year’s triennial assessment notices produced assessment increases “in many cases in excess of 30%” and said that under the existing city approach some homeowners saw a roughly 10% increase in the city portion of their tax bill for tax year 2025 and could face further increases in the coming two years.
"By following the county's lead of adopting a 2% limit on homeowner assessment growth, you can level the assessment playing field in Annapolis," Hammond said, and he urged the council to act quickly because the state requires notification of a reduced percentage by March 25.
Council members asked clarifying questions about whether Hammonds’ proposal would change the tax rate or assessed values; Hammond and council members clarified the proposal would set a limit on assessment growth not the tax rate. Several council members acknowledged affordability concerns and the challenge of balancing services with revenue. No formal motion or ordinance was introduced during the meeting.
Hammond offered to return with further details about which city services he would be willing to reduce to offset any revenue impact, and he said he could provide charts comparing county and city assessment trends. Council members noted the city faces infrastructure and service costs that factor into budget decisions.
The council did not take formal action on a homestead cap at the Feb. 10 meeting. Hammond emphasized the March 25 notification date for a reduced homestead percentage as the critical near-term deadline for any council action.
