Property Tax - Charter Counties - Application of County Tax Limitation on Public Safety Budget
Summary
SB 520 authorizes charter counties in Maryland to exceed charter-imposed property tax rate or revenue limits by a simple majority vote when the additional revenue is needed to fund the county’s approved public safety budget. The bill creates a new provision in the Local Government Article for this authority and amends the Education Article to clarify that, when a county uses this new public safety exception, the excess property tax revenue is not required to be appropriated to the county board of education. The bill expressly excludes Prince George’s County from the new local government authority.
The measure also preserves the existing school-funding exception for charter counties. Under current law, counties may exceed charter tax limits to fund approved county board of education budgets, and SB 520 adds a parallel exception for public safety spending. Counties that use either authority must still report the higher tax rate, the additional revenue generated, and how the revenue was appropriated to the Governor and General Assembly by December 31 of that year. The bill takes effect June 1, 2026, and applies to taxable years beginning after June 30, 2026.
Impact
SB 520 changes state law by creating a new statutory exception to charter-county property tax caps for public safety budgets and by conforming the Education Article so excess revenues raised for that purpose are not diverted to school funding. It affects charter counties generally, but not Prince George’s County, and it gives county councils a simple-majority mechanism to raise taxes above charter limits for approved public safety expenditures. The bill also preserves reporting requirements to the state on any use of the higher tax authority.
Sentiment
The bill appears to have received generally favorable treatment in the Senate, passing third reading by a 31-13 vote after a favorable committee report with amendments. The available record suggests support for giving counties more flexibility to fund public safety needs, while the recorded opposition indicates some concern about overriding local charter tax limits and expanding county taxing authority. No committee transcript is available, so the specific arguments for and against the bill are not documented in the provided materials.
Contention
The main point of contention is the bill’s override of county charter tax limitations, which some may view as weakening voter- or charter-based fiscal constraints. Another likely issue is the reallocation of excess property tax revenues: SB 520 exempts public safety-related excess revenues from the existing rule that such revenues be appropriated to county boards of education, potentially creating competition between school funding and public safety funding. The exclusion of Prince George’s County is also notable, as it limits the bill’s reach and may reflect county-specific policy or legal considerations.