Caroline County commissioners propose 2¢ property tax cut as budget faces grant losses and big capital costs

Caroline County Finance Director Daniel Fox told commissioners and the public on May 5 that property taxes account for roughly 44% of the county's general fund revenue and that commissioners are proposing a 2-cent reduction in the property tax rate, from $0.98 to $0.96 per $100 of assessed value.

The proposal was presented during the first of three advertised public hearings on the proposed FY2027 operating and capital budgets. Fox said the county projects income tax revenue will remain at 3.2% and described other revenue sources, including licenses, permits and state and federal grants.

"Property taxes being the largest, that this year, it looks to be about 44% of our projected income," Finance Director Daniel Fox said. He also summarized several grant reductions that will press the county's bottom line: the federal EMPG grant (emergency management personnel funding) is projected at zero for FY27; a state teacher retirement supplement will drop by about $342,000 (and be eliminated in FY27); and the statewide police accountability board (PAB) implementation grant that previously provided a reduced award ($55,000 for the county) will end for FY27.

Why it matters: commissioners…