The Board of Public Works (BPW) voted unanimously this week to keep the State property tax rate unchanged for fiscal 2026, maintaining the rate at 11.2 cents per $100 of assessed value for real property and 28.0 cents per $100 for public utility operating real property — the same levels in place since 2007.
As previously reported on Conduit Street, despite higher assessments and growing property tax revenues, the current rate still falls short of covering projected debt service. The State will fill the gap with general fund support — an estimated $156 million in fiscal 2026, growing to nearly $400 million in fiscal 2027 and $500 million by fiscal 2030.
The BPW is a three-member panel composed of Governor Wes Moore, Comptroller Brooke Lierman, and State Treasurer Dereck Davis.
The board meets regularly to approve major State expenditures, contracts, and property transactions. It has the authority to set the annual property tax rate used to fund general obligation bond debt service.
The vote follows a recommendation from the Commission on State Debt, which meets annually to propose property tax rates sufficient to cover the principal and interest payments on Maryland’s outstanding general obligation bonds — the State’s primary source for capital improvements like schools, facilities, and infrastructure.
It also comes ahead of Maryland’s next bond sale in June, as well as meetings with the major credit rating agencies. While Maryland currently holds a top-tier AAA rating from Fitch, Moody’s, and S&P, recent reports have raised concerns about a potential downgrade given long-term budget pressures and uncertainty at the federal level.
Stay tuned to Conduit Street for more information.