Each year the Maryland State Department of Assessments and Taxation (MD SDAT) notifies each Maryland county of the tax rate that would produce the same revenue from property tax as was produced the year before.
These rates given to the local governments are known as the “Constant Yield Tax Rates” and are based on the new, net assessable property base for that jurisdiction.
Also, by state law, each year the County Governments must legally advertise – quote – “Notice of a Proposed Property Tax Increase” to comply with Constant Yield Tax regulations.
Despite the verbiage above, the Board of County Commissioners may adjust the tax rate, reduce it, or make no change.
At this time, the County Commissioners are proposing no change to the tax rate.
“The Constant Yield Rate hearing is a key aspect of the extensive budget development process,” said Paul Edwards, Chairman of the Board of County Commissioners. “One of the top priorities of the Commissioners is to consider a long-term plan for funding the ever-increasing educational mandates. Year over year, the models show nearly $15 million in additional required funding to be paid to the Board of Education over the next 10 years.”
What is the Constant Yield Tax Rate?
The Constant Yield Tax Rate is simply a property tax rate that, when applied to Maryland State assessments, will result in the taxing authority receiving the same revenue in the coming taxable year that was produced in the prior taxable year.
Will my property taxes go up?
The Constant Yield Tax Rate is NOT an increase in the property tax rate. The current Garrett County Property Tax rate of $1.056 is proposed to remain the same.
“The State Department of Assessments and Taxation certifies the constant yield tax rate to the County each year and they have strict requirements on the process,” said Scott Weeks, Director of Finance for the Garrett County Government. “We must comply with the language of the public notice, but the current Board of Garrett County Commissioners is recommending no change to the tax rate for the 2024 budget.”
Note, new property or construction added to the rolls for the first time is subtracted from the calculation and allowances for abatements and other deletions are deducted in arriving at the net assessable base for this purpose.
If you have questions on constant tax yield, please consider attending the public hearing at 4:00 PM on May 1, 2023. The hearing will also be streamed live on Facebook. You may also email comments, until June 5, to gccomments@garrettcounty.org.
