Anne Arundel Exec’s Budget Lowers Taxes, Includes Key Taxpayer Benefits

Anne Arundel County Executive Steuart Pittman announced tax savings and other key taxpayer benefits in a preview of his fiscal 2023 budget proposal, slated to be introduced to the County Council on April 29.

“This budget proposal removes our structural deficit, reduces borrowing, increases reserves, lowers taxes, and provides record investments – in education, public safety, parks, health, and smart infrastructure,” County Executive Pittman said. “I often say that we are working together to make Anne Arundel County the best place for all. Today, I am saying that we have worked together to create the Best Budget – For All.”

The County Executive’s fiscal 2023 budget proposal includes key taxpayer benefits:

  • Lower Income Tax

    • Last year, the County Executive was instrumental in passing the Local Tax Relief for Working Families Act in the Maryland General Assembly. MACo supported the bill, which provides counties with the proper tools and flexibility to levy the local income tax with greater equity and fairness.

    • This year, the County Executive’s budget proposal uses the bill’s new authority to lower the income tax rate on the first $50,000 of taxable income for every taxpayer, from 2.81% to 2.70%.

    • According to the County Executive, this will save each taxpayer up to $50 and keeps Anne Arundel County’s income tax rate the lowest in the Baltimore region.

  • Property Tax Rate Set Below the Cap

    • Anne Arundel County’s property tax revenue cap went into effect in 1993.

    • Since then, the property tax rate has been set at the maximum level allowed in 24 out of 28 years. This year, that rate is 96.3 cents per $100 value.

    • The fiscal 2023 budget proposal calls for a rate 3 cents lower, 93.3 cents. According to the County Executive, this saves the average homeowner $100 — and keeps the County’s property tax rate significantly lower than any of its central Maryland neighbors.

  • Eliminates Structural Deficit

    • The County Executive’s fiscal 2023 budget proposal eliminates the structural deficit.

  • Reduces Borrowing

    • The County will reduce borrowing for capital projects from $170 million to $160 million.

    • That is possible because conservative budgeting left a fund balance that allows an up-front investment – or PAYGO – of a record $205 million – protecting future taxpayers.

  • Rainy Day Fund

    • The County’s record rainy day fund impressed the bond rating agencies by showing the County is well-protected from future economic downturns.

    • The County Executive’s fiscal 2023 budget proposal grows that fund again – to the maximum allowable by law.

The County Charter provides 45 days for the Council to deliberate on the budget.

Visit the Anne Arundel County website for more information.