The Commission on State Debt recommended a State property tax rate of 11.2 cents per $100 of assessed value on real property and 28.0 cents per $100 of assessed value on operating real property of public utilities for fiscal 2024. Those rates have been in place since 2007.
As an advisory board to the Board of Public Works, the Commission convenes annually to recommend a State tax rate on real and personal property. This tax rate must provide sufficient funds to meet debt service requirements (interest and principal) on outstanding general obligation bonds during the next fiscal year. These bonds finance capital improvements across Maryland, such as schools and roads.
However, the Department of Legislative Services notes that the fiscal 2024 tax revenue will not cover the total amount of the debt service. As a result, DLS estimates that the state will have to supplement with more than $433 million from the General Fund to offset the shortfall.
The recommended rate requires approval from the Board of Public Works, which will vote on the 2024 State property tax rate at today’s meeting.
The Board of Public Works — a three-member panel including Governor Wes Moore, Comptroller Brooke Lierman, and State Treasurer Dereck Davis — reviews projects, contracts, and expenditure plans for state agencies, many of which affect county governments.
Stay tuned to Conduit Street for more information.