Frederick County is expanding property tax relief for older residents and qualifying uniformed service members after the County Council unanimously approved legislation increasing the local property tax credit and broadening eligibility.

Bill 26-07 increases the county property tax credit from 20% to 30% while raising both the household income and home value limits for eligible homeowners. According to the County’s fiscal analysis, the expanded credit is expected to reduce county property tax revenues by approximately $333,000 to $821,000 annually, depending on participation.

The legislation takes advantage of flexibility the General Assembly provided counties in 2022. Before then, State law limited the optional local property tax credit to 20% of the county property tax bill for no more than five years.

MACo supported HB 1186 with amendments to remove those State limits, allowing counties to determine both the amount and duration of the credit based on local priorities. Frederick County is now using that authority by increasing the credit to 30%.

The Council’s discussion also highlighted that, while counties now determine the amount and duration of the credit, eligibility requirements remain established in State law, limiting local flexibility.

As local governments continue evaluating ways to provide targeted property tax relief, discussions may increasingly turn to whether counties should also have greater discretion over eligibility requirements, not just the amount and duration of the credit.

Stay tuned to Conduit Street for more information.