[Baltimore Sun] Carroll County residents speak out against proposed tax increases
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Carroll County residents and agency officials poured into the Carroll County Arts Center in Westminster Monday night, many frustrated and angry at a possible 2-cent property tax increase that is slated to accompany a hike in the county’s housing recordation rate, both starting July 1.
For about two hours, the all-Republican Board of Carroll County Commissioners heard pleas from residents not to raise the property tax from the current rate of $1.018 per $100 of assessed value to $1.038. The proposal is part of the county’s proposed $541.6 million operating budget for fiscal 2025.
“Members of the Board of Commissioners, I’m opposed to any tax increases,” Scott Hollenbeck, of Westminster, said during the public hearing. “I ask that the Board of Education and the public schools be given only the Maintenance of Effort. I hope that funding for the Carroll County Arts Council is zero. Let them get the money from the private sector.”
Maintenance of effort refers to a state law that essentially sets a minimum funding level that the county must provide to the school system each year.
“I ask that county employees hiring be frozen,” Hollenbeck said. “Freeze as much budget as you can. With gasoline [costs] being high, inflation being high, and you people want to sock it to us again. You all need to think about how much money you’re taking from us, state’s taking money from us. How many part-time jobs, how many full-time jobs, do you want us to work? Gentlemen, I’m opposed to any tax increases. I did not vote for you for tax increases. I did not campaign for some of you for tax increases.”
Commissioners heard from real estate agents who said they opposed the increase in the county’s recordation tax rate from $5 per $500 of assessed value to $6.50. The recordation tax is imposed by the state as compensation for registering the purchase or sale of property. The money is collected by the county where the transaction takes place.
The agents pointed to the already difficult state of the housing market in Carroll County, where home sales and inventory remain low, while sale prices climb.
“We know that there will be increased taxes coming from the state. This is not the time to pass additional taxes at the local level,” said Ari Plaut, government affairs director with Carroll County Realtors. “Times are tough for everybody. This will make it increasingly difficult for first-time homebuyers to purchase homes in Carroll County.”
Brian Lipsky, former president of Carroll County Realtors, echoed Plaut’s concerns.
“You talked about past commissioners having kicked the can down the road and now you’re faced with finding solutions. But in my opinion, real estate cannot always be the place you look for more revenue,” Lipsky said. “The issues you face will not be solved by raising the property tax and the recordation tax rates.”
Commissioners have said they are considering a hike in the recordation tax because less revenue is being collected on home sales. The lack of available and affordable homes on the market is to blame, Lipsky said.
In March, commissioners were told the county faced a $12.6 million deficit in the operating budget for fiscal 2025. The board has spent the last few months debating how best to deal with the shortfall.
The last time commissioners raised property taxes was in fiscal 1997. The last time commissioners raised the recordation tax rate was in fiscal 2003.
Meanwhile, teachers and officials with Carroll County Public Schools expressed their gratitude to commissioners because of a planned increase in funding in the budget.
The bulk of the county’s operating budget (42.06%) goes to the public schools. Next year, the school system is slated to receive $6 million over its required contribution from the county. This equates to a total of $13 million more than the current budget.
The school system received $238,651,000 this year and is slated to get $253,130,930 in fiscal 2025, according to budget documents.
“I would like to begin by thanking the commissioners for the additional $6 million in our operating budget,” said Marsha Herbert, president of the Carroll County Board of Education. “This has allowed Carroll County Public Schools to be one of the first school systems in the state to ratify [collective bargaining] agreements with all five of our employee units. …Thank you, and we really appreciate it. And, our teachers do, too.”
Superintendent of Schools Cynthia McCabe also thanked commissioners.
“I support everything that President Herbert just said. I just want to say thank you for supporting us with the $6 million funding over what was originally projected,” McCabe said. “That has enabled us to create a career ladder and provide our bargaining units with salaries that are more competitive with other districts in our area. … Our top priority is attracting great teachers to put in front of our students and our classrooms.”
A public work session on the budget is scheduled for Tuesday. The budget is slated to be adopted on May 21.
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