The Talbot County Council proposed its FY 2013 operating budget on Tuesday, announcing that the county’s property tax cap may have to be broken in order to comply with maintenance of effort. The proposed budget also calls for an increase in personal income tax from 2.25 percent to 2.4 percent. Talbot County currently has the lowest property tax rate and the second lowest income tax rate in Maryland. The Star Democrat reports:
The budget proposes to override the tax cap by $1,928,545, the amount above last year’s Board of Education funding to meet the MOE level.
Under the proposal, the county’s property tax rate would increase from 44.8 cents to 49.1 cents per $100 of assessed value, which includes a 26-cent “Education Supplement” on properties outside the towns of Easton, Oxford, Queen Anne, St. Michaels and Trappe.
The proposed budget also increases personal income tax from 2.25 percent to 2.4 percent.
The total proposed budget is $69,471,600 compared to $65,945,000 during the current fiscal year.