Tell the commissioners you want the property tax rate reduced

Monday, May 12, 2008

On Wednesday, May 14, the Charles County commissioners will hold a public hearing at 7 p.m. to increase real property taxes. The commissioners are proposing to maintain the current property tax rate of $1.026 per $100 of assessed property value.

With the increases in the assessed value of real property, the county estimates that property tax revenues will increase by 9 percent if the current property tax rate remains the same. What this means in plain English is that the county commissioners want to increase the amount of property taxes you will pay fiscal 2009 another 9 percent.

When you think about the 16 percent reduction in the market value of your home and the fact that the current rate of inflation averaged 4.09 percent for the first quarter of 2008 and the fact that Charles County (Legislative District 28) has the highest foreclosure rate in the state, you have to wonder why the commissioners would even consider raising the property taxes of their constituents.

Is the rationale for this increase due to the belief by our county officials that we are not an excessively taxed jurisdiction? If so, here are some facts:

1. On average, property tax rates statewide have decreased 1.5 percent annually each year from fiscal 2004 to fiscal 2008.

2. Most counties have lowered real property tax rates since fiscal 2004; four counties have held steady and only Charles has raised it.

3. Repeat: Charles County is the only jurisdiction in Maryland to have raised its property tax rate since fiscal 2004 (FY04 by 1 percent).

4. Charles County now ranks fifth highest in the state for property tax rates.

5. Charles ranks ninth highest in Maryland for estimated closing costs: six month escrow.

6. Charles County is tied for first for having the highest recordation tax rate in Maryland.

7. Charles County is sixth highest in the state for recordation average and median tax estimates.

8. The commissioners have already attempted to obtain state legislative authority to increase both the development excise tax on new home construction and the local real estate transfer tax rate they have under code home rule.

Although setting of the local property tax rates is the task of elected officials, Maryland’s Constant Yield Tax Rate provision gives property owners a voice in the process before the final tax rates are determined.

The Southern Maryland Association of Realtors urges all property owners in Charles County to use their voice on Wednesday, May 14, at 7 p.m. in the commissioners’ meeting room in La Plata. Tell the commissioners that you want the property tax rate reduced to offset the effect of increasing assessments.

And if that doesn’t work, we urge you to appeal your tax assessments.

Christopher X. Guldi, Hughesville

The writer is the president of the Southern Maryland Association of Realtors.