Planning staff urges code change so council can set excise tax above $5,000; collections already above expectations

Planning staff explained the county’s authority to charge a building excise tax and recommended code changes to give the council more latitude to set development fees.

"This law allows counties to charge tax on the development," Speaker 9 said, describing the authority as coming from the Maryland General Assembly and noting that current county code limits the excise tax to $5,000. Staff said Dorchester’s $5,000 figure is low relative to regional averages; the presenter showed an $8,875 regional average and noted some counties write broader authority into their code so they need not return to the legislature for small adjustments.

Speaker 9 reported that, as of 07/01/2025, the county has collected about $175,000 and that, based on permits in the queue, staff projects approximately $250,000 by June 30. The planning presenter advised the council to consider amending the county code to allow the council to set excise amounts during the regular fee-schedule process rather than requiring repeated legislative action.

Councilors asked clarifying questions about whether other counties require legislative action to raise the cap; staff confirmed some do and some have broader authority in their codes. The council did not change the code tonight but instructed staff to schedule legislative follow-up during the next session if the council wants to pursue broader excise authority.

Next steps: planning staff will return with proposed code language and an annual reporting plan describing how excise tax revenues would be used.