Prince George’s County Pushes for Change in Wealth Calculation

As reported by the Washington Examiner, Prince George’s County officials plan to push for a change in how wealth is calculated under the education funding formula.

The county has long had issues with the way Annapolis assesses net taxable income — essentially a wealth index of the state’s 23 counties and Baltimore. By looking at residents’ income tax returns, the state determines how much money to allot to each county.

That income tax information is assessed on Sept. 15 each year. That’s the problem, county officials say: Taxpayers can file for an extension so they don’t have to file until Oct. 15. This step is often taken by wealthier taxpayers, meaning that counties with richer residents look more in line with counties like Prince George’s in the eyes of Annapolis.

This session will not be the first time legislation will be introduced to address this issue.  Legislation has been introduced in prior years and was most recently included in the gaming bill that was considered last session.

The state’s net taxable income formula was almost changed earlier this year, when state lawmakers debated a bill allowing a new casino in Prince George’s County with table games and all-day operation at casinos across the state. Buried deep within the bill was a provision giving Prince George’s the money it lost out on, though counties like Montgomery would get to keep their extra funding as a compromise.

It is anticipated that a similar compromise will be reached this upcoming session.

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