Taxes and Revenues Archives

Economist Predicts Taxes Will Increase and Aid to Counties Will Decline

According to the MarylandReporter.com blog, while speaking before the Maryland Economic Development Association, economist Anirban Basu predicts that taxes will increase next year, while aid to counties will continue to decline. Basu, one of the most widely-quoted economic experts in the state, said in his annual review of economic conditions that “aid to local government will be slashed at every level” and “taxes are going higher,” particularly local property taxes to make up for the…

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June 8, 2010

Taxes and Revenues / Uncategorized

NACo President-elect Urges Congress To Consider Local Government Budgets

On April 15th NACo President-elect Glen Whitley testified before the House Judiciary Subcommittee on Commercial and Administrative Law, which is exploring the impact federal legislation has on local government budgets and revenues. Representing the nation's counties, Whitley emphasized that federal legislation with tax and revenue components could potentially have large financial implications on local governments. He stated: "...while federal legislation can have a positive impact on local government revenue streams, it can also cause just the opposite. Unlike the federal government, local governments must balance their budgets,…

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April 28, 2010

Taxes and Revenues / Uncategorized

State Property Tax Rate is Stable For FY 2011

Maryland's state property tax rate will remain at 11.2 cents per $100 of assessed value for 2011. This rate, which has been in place since 2006, was approved by the Board of Public Works yesterday based on a recommendation from the Commission on State Debt. It won't cost the state's general fund anything this year to keep the rate intact, but the commission warned that it will become increasingly costly to maintain the rate in…

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April 22, 2010

Bill Hearing / Taxes and Revenues

Homestead Credit for Independent Living Retirement Communities Narrowed to Carroll County

As introduced, SB 922 would have extended the Homestead Property Tax Credit (credit) in all local jurisdictions to apply to units of independent living retirement communities. MACo opposed the original bill, objecting to the breadth of new application for this homeowner-only tax credit, and noting that the benefit would not necessarily inure to the occupant, but instead to the commercial enterprise operating the facility. As amended in the Senate, the bill has been amended to…

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April 1, 2010

Taxes and Revenues

Heavy Machinery Taxation Bill – Moving Forward as a Compromise

SB 685, legislation to implement a new gross receipts tax on heavy machinery rentals to replace the current personal property tax, has been approved by the Senate Budget and Taxation Committee with extensive amendments. The amendments reflect a compromise reached by local governments with the affected industry, which had been actively sought by bill proponents. The amended bill will, in short: -impose a 2% gross receipts tax on heavy machinery rentals, payable to counties and…

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April 1, 2010

Taxes and Revenues

Bill Impeding Water Bill Collection Defeated on Senate Floor

Senate Bill 158 was introduced to preclude local governments from using the tax sale process to collect unpaid water and sewer bills. MACo opposed the bill, raising concerns that without at least the potential for tax sale, collections would become less effective and would likely drive rates up for other system users. From MACo's testimony on the bill: [T]he fair application of public taxes and charges necessitates that these be paid by all taxpayers –…

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March 18, 2010

Bill Hearing / Taxes and Revenues

MACo Supports Bill to Apply Homestead Property Tax Credit to Bicounty Commissions and Special Taxing Districts with Amendments

In its written testimony submitted to the Senate Budget and Taxation Committee and the House Ways and Means Committee this week, MACo offered amendments to SB 683/HB 892 suggesting that a county be given the option of determining whether an assessment cap should apply to single county special taxing districts. As introduced, these bills would make the homestead property tax credit apply to any property tax imposed by a county for a bicounty commission and…

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March 13, 2010

Bill Hearing / Taxes and Revenues / Uncategorized

MACo Opposes Extending Homestead Credit to Seniors With Second Properties

MACo Associate Director Andrea Mansfield offered testimony today in opposition to HB 805. This bill would extend the Homestead Property Tax Credit (Credit) to the second home of a homeowner who is at least 65 years old. The second home cannot be rented to or occupied by someone other than the homeowner, and the second home cannot be used for establishing residency to receive State, county, or municipal services. Ms. Mansfield testified that this would…

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March 4, 2010

Bill Hearing / Taxes and Revenues / Uncategorized

Heavy Equipment Gross Receipts Tax Must be True Local Option and Revenue Neutral

MACo Associate Director Andrea Mansfield and the Chief of Treasury from Prince George's County Stan Willis testified today before the House Ways and Means Committee on HB 817. The bill would grant a personal property tax exemption for heavy equipment used for short-term lease or rental, and would grant local governments the option to enact a new gross receipts tax on the use of that equipment. While widely described as “revenue neutral,” the bill as…

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March 4, 2010

Bill Hearing / Taxes and Revenues / Uncategorized

MACo Opposes Bill to Prohibit Counties From Collecting Recordation and Transfer Taxes on Debt Forgiven in Short Sale

MACo opposed HB 590, which had a hearing before the House Ways and Means Committee. This bill would prohibit a local jurisdiction from collecting recordation and transfer taxes on the amount of debt forgiven in a “short sale” transaction. Under normal circumstances, when an individual purchases a home, he or she is expected to pay recordation and transfer tax on the full consideration of the property. MACo sees this circumstance no differently. In a short…

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February 27, 2010