Frederick County Task Force Discusses Revenue Options for New Infrastructure

A Frederick County task force recently appointed to discuss whether impact fees are the appropriate approach for funding infrastructure needs resulting from new developments has expanded its focus to examine other taxing mechanisms.   As reported by the Frederick News-Post:

Maryland Delegate Galen Clagett says Frederick County’s leaders should consider raising local income taxes to help pay for school construction and other capital projects.

Frederick County’s current income tax rate sits at 2.96 percent, but state law permits local governments to charge up to 3.2 percent, Clagett noted. If Frederick County officials decided to raise the tax, they could dedicate the increase to capital improvements, said Clagett, D-District 3A.

It was also suggested that recordation tax revenues could be reallocated to fund capital projects. These revenues are now shared by the county’s general fund, agricultural preservation programs, and school construction projects.

The task force, chaired by County Manager Lori Depies, plans to develop a proposal for consideration by the end of the year.

Depies said she is starting to draft the work group’s recommendations to county commissioners. The group’s members do not have an interest in establishing a Frederick County transfer tax to fund infrastructure projects, Depies said.

Previous coverage of the task force’s formation can be found on Conduit Street.

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