State Department of Assessments and Taxation - Notification of Constant Yield Tax Rate - Alteration
Summary
SB183 changes how the Maryland State Department of Assessments and Taxation (SDAT) handles notice of the “constant yield tax rate” for local taxing authorities. Under prior law, SDAT was required to notify each county, Baltimore City, and municipal corporation of the constant yield tax rate each year. This bill alters that requirement so the Department must provide the constant yield tax rate only if a taxing authority requests it by February 1. The bill also updates the annual notice provisions to make clear that the Department will still send assessment estimates and related information to taxing authorities by February 14.
The constant yield tax rate is the rate that would generate the same property tax revenue as the current year, based on projected assessments. By making the rate calculation and notice request-based rather than automatic, the bill reduces a mandatory annual administrative function for SDAT while preserving the ability of local governments to obtain the information when needed. The bill takes effect June 1, 2025, and amends Maryland’s Property Tax law, specifically Section 2-205 of the Tax-Property Article.
Impact
The bill amends Maryland’s Tax-Property Article § 2-205 by repealing the automatic annual notice requirement for the constant yield tax rate and replacing it with a request-based process. It leaves intact SDAT’s obligation to provide assessment estimates and to notify taxing authorities of assessment changes from appeals or Maryland Tax Court actions. The practical effect is to shift the burden to local taxing authorities to request the constant yield calculation if they want it, while preserving the underlying tax-rate methodology for property tax planning and revenue estimation.
Sentiment
The bill appears to have been broadly supported and noncontroversial in the legislative process. It passed the Senate 43-1 and the House 129-8, indicating strong bipartisan approval with only limited opposition. The absence of committee transcript discussion suggests there was little public controversy or extended debate recorded in the available materials.
Contention
The main policy change is administrative: whether SDAT should be required to send the constant yield tax rate to every taxing authority every year, or only upon request. Supporters likely viewed the change as a modest efficiency measure that reduces unnecessary notices, while opponents may have been concerned that a request-based system could create a small risk that a local government might miss the deadline and lose a useful budgeting tool. The narrow opposition in both chambers suggests any disagreement was limited and did not center on the substance of property tax law itself.