County assesses revenue increase amid rising property values and new construction

Frederick County's Board of Supervisors held a pivotal meeting on December 11, 2024, where they discussed significant property tax reassessments that could lead to a substantial increase in county revenue. The reassessment revealed that residential properties have increased in value by 17.57%, while commercial properties saw an even more impressive rise of 26%. This growth is expected to generate an additional $16.4 million in revenue for the county, marking an approximate 21% increase from the previous year.

During the meeting, officials clarified that the new revenue figures are based solely on reassessed property values and do not include new constructions or developments that have occurred in the past two years. This distinction is crucial as it allows the county to maintain a revenue-neutral tax rate, which is set at 51 cents per $100 of assessed value. The state code permits a slight adjustment for natural growth, allowing for a 1% increase in the revenue-neutral calculation.

The discussions highlighted the importance of accurately capturing the value of properties that have recently been developed or improved. Supervisors emphasized the need to ensure that existing homeowners are not disproportionately affected by tax increases, particularly those whose properties have not undergone significant changes.

As the county prepares for the upcoming fiscal year, the Board is tasked with finalizing the tax rate and ensuring that the reassessment process is transparent and fair. The implications of these discussions are significant for Frederick County residents, as they will directly impact property taxes and the county's financial health moving forward. The Board plans to continue evaluating these figures and will provide updates as they finalize their decisions in January.