Taxes and Revenues Archives

Counties Face Uneven Revenue Growth as Pressures Build

As counties across Maryland move deeper into fiscal 2026, the latest county revenue outlook points to familiar patterns and growing risks. Property taxes continue to anchor local budgets, but other significant revenue sources show uneven performance and limited growth. At the same time, State budget pressures and cost shifts continue to narrow counties’ fiscal room to maneuver. As previously reported on Conduit Street, Maryland’s broader fiscal outlook remains strained. Structural deficits, growth in education costs,…

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January 29, 2026

MACo Testimony / Taxes and Revenues

MACo Supports Smarter Growth and Infrastructure Planning

On January 27, Legislative Director Kevin Kinnally testified before the Ways and Means Committee in support of HB 78 – Property Taxes - Authority of Counties to Establish Subclasses and Set Separate Rates for Land and Improvements to Land. This bill authorizes county governments and Baltimore City to establish subclasses of real property, separating land from improvements, and to apply different real property tax rates to each subclass. The bill provides a measured option to…

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January 28, 2026

MACo Testimony / Taxes and Revenues

Balancing Accuracy and Affordability in Property Assessment Upgrades

On January 27, Legislative Director Kevin Kinnally submitted written testimony to the Ways and Means Committee in support of HB 176 – State Department of Assessments and Taxation and Department of General Services - Property Appraisal Aids - Geographic Images with amendments. This bill seeks to provide SDAT with advanced digital tools to improve the accuracy, efficiency, and fairness of property assessments. Counties request amendments to reduce unnecessary costs and ensure a smooth implementation process.…

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January 28, 2026

MACo Testimony / Taxes and Revenues

MACo: Bolster Tax Fairness, Safeguard Small Businesses

On January 27, Legislative Director Kevin Kinnally submitted written testimony to the Ways and Means Committee in support of HB 294 – Personal Property Tax - Exemptions for Low Assessment - Alteration. The bill preserves tax relief for small businesses while allowing the State Department of Assessments and Taxation (SDAT) to collect basic eligibility information, ensuring proper oversight without adding unnecessary burdens. HB 294 addresses a flaw in the current system. In 2022, the General…

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January 28, 2026

MACo Testimony / Taxes and Revenues

MACo Backs Local Tax Flexibility To Meet Infrastructure, Education Demands

On January 21, Legislative Director Kevin Kinnally testified before the Budget and Taxation Committee in support of SB 224 – Property Taxes – Authority of Counties to Establish a Subclass and Set a Special Rate for Commercial and Industrial Property. This bill authorizes county governments, subject to General Assembly approval, to establish specific subclasses of commercial and industrial real property and apply a special property tax rate to support local transportation priorities and public schools.…

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January 21, 2026

MACo Testimony / Taxes and Revenues

Counties Support New Tool to Incentivize Local Redevelopment

On January 20, MACo Legislative Director Kevin Kinnally submitted written testimony before the Ways and Means Committee in support of HB 161 – Property Tax Credit – Retail Service Station Conversions. The bill authorizes local governments to grant a property tax credit against the county or municipal property tax when a property converts from a retail service station to another retail use, a residential use, or a mixed retail and residential use, as specified. The…

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January 20, 2026

County Budgets / General Assembly News / Taxes and Revenues

2026 Session Primer: When Do State Tax Changes Spill Over Into County Budgets?

As the 2026 Maryland General Assembly gets underway, tax policy once again sits at the center of the legislative agenda. With lawmakers weighing new credits, deductions, exemptions, and structural tax changes, a familiar and critical question: Which State tax changes affect county budgets — and which do not? The distinction matters. Counties must balance budgets every year, and even small State-level tax decisions can ripple through local revenues. Here’s a practical primer for navigating where…

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January 20, 2026

County Budgets / County Government and Structure / County News / Finance and Procurement / Taxes and Revenues

Financial Snapshot Fiscal Year 2026: Budgets, Tax Rates, and Selected Statistics

The Fiscal Year 2026 Budgets, Tax Rates, and Selected Statistics (BTRB) is now available on the MACo website. This annual publication offers an overview of tax structures, tax rates, and revenue trends across Maryland. The BTRB provides information on a a wide range of county revenue sources and budget data. The report is organized into detailed sections, each focusing on a key aspect of fiscal operations - from current tax rates and revenues to multi-year…

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January 8, 2026

County Budgets / News You Can Use / Taxes and Revenues

Frederick Council Expands Daycare Property Tax Credit

The Frederick County Council unanimously passed legislation to expand its property tax credit for daycare providers, increasing local support for an essential sector facing rising costs and persistent provider shortages. Under Bill 25-13, introduced by Council Member Renee Knapp and Council President Brad Young, the maximum allowable property tax credit for qualified daycare providers will increase from $3,000 to $10,000 per property. The change also extends eligibility to include family childcare homes and group day…

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January 7, 2026

County Budgets / County News / Taxes and Revenues

Here’s How Counties Balanced Property Tax Differentials and Rebates in Fiscal 2025

At the local level, counties and municipalities share responsibility for delivering public services. Residents in municipalities pay property taxes to both the county and municipal governments, even when municipal governments provide services that counties deliver elsewhere. Maryland law recognizes that overlap. Property tax set-offs allow counties to account for services municipalities provide, rather than county services, while maintaining local flexibility. The Department of Legislative Services’ annual report on property tax set-offs for fiscal 2025 highlights…

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January 6, 2026