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SB 1041

Property Tax - Charter Counties - Application of County Tax Limitation on Public Safety Budget

2025 Regular Session Introduced by Ben Kramer

Allows Maryland charter counties to exceed tax limits by simple majority to fund the approved public safety budget; excess revenue (not for schools) goes to public safety.

First Reading Senate Rules
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Bill Summary · SB 1041

Summary — SB 1041

Title: Property Tax — Charter Counties — Application of County Tax Limitation on Public Safety Budget
Status: First Reading (Senate Rules). Introduced: 2025. Effective date in bill: June 1, 2025 (applicable to taxable years beginning after June 30, 2025). Companion: HB 3923.

Purpose

SB 1041 amends Maryland law to give charter county governing bodies a clear statutory ability to exceed a county charter’s property tax rate or revenue limit — by a simple majority vote — specifically to fund the county’s approved public safety budget. The bill also clarifies how any property tax revenues raised above charter limits must be allocated.

Key provisions

  • Adds Local Government § 16–109.1:

    • Authorizes a county council of a charter county, by a simple majority vote, to set a property tax rate higher than the county charter limit or collect more property tax revenue than the charter authorizes for the purpose of funding the county’s approved public safety budget.
    • Requires that, if the county raises property tax revenue above the charter limit (other than revenues required to fund a county board of education under Education §5–104), the county must appropriate all such excess property tax revenue to the public safety budget.

  • Amends Education Art. § 5–104(d):

    • Retains the existing authority allowing counties to exceed charter tax limits to fund an approved county board of education budget, and the requirement to appropriate excess property tax revenues to the county board.
    • Adds an explicit exception so that property tax revenues raised for public safety under the new Local Government §16–109.1 are not required to be appropriated to the county board of education.
    • Preserves the prohibition on reducing other local revenue support to school boards below current funding levels when a county raises taxes, and maintains the reporting requirement (annual report by Dec. 31 on tax rate set, additional revenues generated, and appropriation of additional revenues).

Who is affected

  • Charter counties in Maryland (their county councils and budgets).
  • County public safety functions (e.g., police, fire, EMS) — intended recipients of the excess revenues.
  • County boards of education — protected from losing certain local funding levels, but the bill carves out excess revenues raised for public safety from mandatory schoolboard appropriation.
  • Property taxpayers in charter counties — may experience higher property tax rates/revenues if a county council chooses to exceed charter limits.

Procedural / timeline notes

  • Effective June 1, 2025; applies to taxable years beginning after June 30, 2025.
  • Includes continued reporting obligations to the Governor and General Assembly concerning any tax-rate increases and the use of additional revenue.

Potential impacts / considerations

  • Lowers the legislative threshold (simple majority) for charter counties to exceed locally imposed tax caps for public safety, increasing counties’ flexibility to raise local revenue for public safety programs.
  • Directs any revenue raised above charter caps (except school-specific appropriations required under Education §5–104) to be dedicated to the public safety budget, potentially prioritizing public safety spending over other county uses.
  • Maintains protections for school funding levels under current law but clarifies that public safety overrides the mandatory appropriation of excess revenue to schools.
  • Fiscal effects depend on how many charter counties choose to exercise this authority and by how much they increase property tax rates; the bill does not itself set any tax rates or revenue amounts.

Compiled from official sources — confirm details with the bill’s official record.

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