Editorial: Attend Budget Public Hearing
Originally Published: April 7, 2024
In a 4-to-1 vote during their March 19th meeting, Commissioners Alderson, Colvin, Guy, and Ostrow voted to raise the income tax rate to 3.2%; only Commissioner Hewitt voted against the increase. The move was easily predicted as far back as January, when the county’s Chief Financial Officer advised the Commissioners of “flexibility in being able to raise taxes.” Commissioner President Guy said he didn’t mind paying a little bit more to contribute to educating our youth. I agree. However, opportunity exists to examine, and update, the county’s tax code.
State law permits the County to set an income tax rate between 2.25% and 3.2%, as a single rate or a graded system. Several county’s already have specific tax brackets with corresponding rates in place. With a graded system, there may be an opportunity to harness additional revenue for sustaining quality of life while not adversely affecting those who are struggling. It’s worth a look.
Assuredly, while there are those struggling there are also those doing well. The “county has over 200 high-tech aerospace and defense companies, and more aerospace engineers per capita than any place in the country,” according to a market study prepared for Historic St. Mary’s City. The statistics are also highlighted by the County’s Department of Economic Development. Leonardtown’s Downtown Strategic Plan showed a combined trade area retail leakage gap of $350M in 2018, while the HSMC market study from 2023 noted $112M in retail leakage within a 30-minute driving distance. Retail leakage describes uncaptured market demand due to a lack of supply, evidence of disposable income in the area.
Another outdated area of the tax code is an existing property tax credit available to seniors 65 years or older who have lived in their home for 40 years. We have a transient population because of the base, seniors often downsize and move as they age, and the average length of homeownership in Maryland in 2022 was 15 years. It may be time to examine our local tax code and move it from past to present.
The last few times either property or income taxes have been raised the increases have been linked to supplying funds to the Board of Education. Over the last decade, though, the county government has expanded considerably as services demanded by a growing population have intensified. Interestingly, when taxes are lowered it's usually before or during an election year, a tantalizing argument for re-election. But when taxes are increased, it’s often in the middle of the Commissioner’s four-year term providing time for ill-feelings to fade away before the next election.
A public forum is scheduled for April 23, 6PM, at Great Mills High School, where the Commissioners will hear feedback about the proposed budget. Six topics are available for comment including raising the Local Income Tax rate, updating Fees & Charges, increasing the fire tax for Mechanicsville, Leonardtown, and Ridge Volunteer Fire Departments, and overall comments on the FY25 Recommended Budget.
It is vitally important for the public to attend and share their thoughts about how tax dollars are being spent to support a quality of life for all in St. Mary’s County. Moreover, it’s an election year for three Board of Education positions. To date, none of the non-incumbent candidates have weighed in on the budget process–something they will have control of if elected. When we vote, we place trust in those elected to make educated, responsible decisions. We cannot make informed voting choices for candidates who are not engaging in the necessary homework.
