Staff warns of county excise‑tax ordinance and possible state zoning override that could affect Leonardtown
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Summary
Town planning staff briefed the commission on a county ordinance to apply a county excise tax to town developments and on pending state legislation that could limit local authority over townhome approvals; staff said the issues are pending and may lead to intergovernmental dispute or legal challenge.
Planning staff opened the meeting with a multi‑topic briefing that included a warning about a county ordinance and an overview of proposed state legislation on zoning.
Staff told commissioners the county has proposed an ordinance to apply its excise tax to developments in the town — replacing the prior impact‑fee mechanism — and that, unlike the impact fee, the excise tax would flow to the county general fund rather than be earmarked for schools. "Their excise tax goes into their general fund so they can spend that money wherever they want," staff said, adding that the county’s change could “affect the town very, very seriously.” The planning office said it had asked the county to earmark any board of education share for schools and that the town attorney believes the town may not be bound by the county ordinance; staff said the subject is scheduled for a county public hearing on March 10.
Staff also summarized a governor’s proposal that would limit some local zoning authority by requiring municipalities to allow townhomes in residential zones and by streamlining approvals. Staff said municipal associations including the Maryland Municipal League and MACo are engaging the proposal and that towns are concerned about water, sewer and APFO capacities. "You need to streamline the process," staff said, but added local officials are working with state groups to try to make the measure acceptable to municipalities.
Commissioners did not take formal action on either item during the meeting; staff characterized the topics as active policy debates that could affect local planning and economic development strategies and, if the county ordinance is adopted, could result in litigation between governments.

