SDAT, PTAB Brief Committee on Tax‑credit Backlogs, IT Modernization and Appeals Delays
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Summary
DLS and agency officials explained that SDAT's FY27 allowance is lower, flagged tax‑credit payment deficiencies and backlogs, outlined CRIS IT modernization status, and PTAB described appeal backlogs concentrated in Prince George's and Baltimore City.
Department of Legislative Services analysts told the subcommittee that the State Department of Assessments and Taxation (SDAT) faces multiple fiscal and operational issues heading into FY27, including tax‑credit deficiencies, IT modernization questions, and prior instances of purchasing‑card misuse documented by the Office of Legislative Audits.
DLS reported the FY27 SDAT allowance at about $185.2 million (a 2.5% decrease) and identified proposed FY26 deficiencies totaling approximately $15.9 million, including a $7 million deficiency for the homestead tax credit (HTC) and other reimbursements tied to the enterprise zone and cost‑share adjustments. DLS also flagged the use of expedited service fund special funds for operating expenses and asked SDAT to reconcile project accounting for major IT projects, including the cloud revenue integrated system (CRIS) used to modernize tax‑credit administration.
SDAT Director Bob Yeager told the committee the department has accelerated outreach, improved customer services and moved forward with cloud migration for business filings. He said parts of the CRIS project are deployed, other parts are in procurement, and DLS recommended restricted funds pending updated reports. Yeager described steps taken after an OLA audit that identified corporate purchasing‑card misuse: the employee involved was terminated, SDAT tightened oversight, and corrective measures were implemented.
The Property Tax Assessment Appeals Board (PTAB) testified on backlog dynamics. Acting administrator Katrina Wiggins said clearance rates vary with mailing cycles and that Prince George's County and Baltimore City accounted for roughly 71% of outstanding appeals at one reporting date; she noted local staffing and scheduling constraints and suggested options such as simultaneous hearings to increase throughput. Committee members asked for reports on vacancies, backlog age and mitigation strategies; PTAB indicated the appointments office handles member selection and that additional operational options will be explored.
No votes were taken; SDAT and PTAB committed to follow‑up reports and DLS recommended committee narratives and restricted language where required.