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Committee endorses authority for counties to set higher commercial property subclass rates

January 28, 2025 | Prince George's County, Maryland


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Committee endorses authority for counties to set higher commercial property subclass rates
On Jan. 28, the Prince George’s County General Assembly Committee voted to move House Bill 23 favorably. HB 23 would authorize counties to create property‑tax subclasses (commercial, industrial, condominium categories) and levy a special rate not to exceed 12.5 cents per $100 of assessed value above the current rate. The bill, as drafted, directs that funds be used for transportation improvements and the county education budget.

Presenters emphasized that the bill is an authority, not a mandate: counties would have discretion whether to adopt a higher subclass rate and could set lower increments than the maximum. The presenter said an estimated increase in revenue would be about $2,400,000 for each additional cent charged; at the full 12.5‑cent increase the estimate was about $30,000,000. The draft also includes exemptions for small businesses (fewer than 15 employees) and credits for residential portions of mixed‑use properties.

Committee debate and concerns: members supported the concept of additional local tools but expressed concern about statutory earmarks. One member asked whether the bill’s requirement to tie increased funds specifically to transportation and education should be broadened to give localities more discretion. County representatives and the bill presenter discussed the political tradeoffs of earmarking versus broader local authority.

Action: Vice Chair Fisher moved and a vice chair of the county council seconded the favorable report. The clerk recorded unanimous “aye” votes and the motion passed 4–0.

Discussion vs. decision: the committee’s favorable report forwards the authority to the delegation for consideration; actual adoption and rate setting would require future local legislative action if the state law is enacted.

Evidence: staff briefing and the clerk’s roll call recorded on the Jan. 28 transcript.

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Scribe from Workplace AI
Scribe from Workplace AI