Maryland's task force is weighing more local power to levy property-related taxes and fees. Housing advocates warn added charges could make buying a home harder. Recommendations are expected in November; lawmakers must approve any expansion.
The Baltimore Sun cited 2022 Maryland data showing that only 49% of moderate-income earners making about $80,000 a year could afford a home. The National Association of Home Builders says 1.4 million Maryland households lack the income to qualify for a median-priced new home ($432,949); it estimates a $1,000 price increase would put nearly 3,000 more households out of the market.
Current law allows counties to raise property taxes without state permission, though Maryland sets the rate-calculation formula; other local taxes require state lawmakers' approval. The dispute is part of a wider funding debate as lawmakers face a projected $3.1 billion shortfall, expected to reach $3.9 billion by fiscal 2031. Economist Anirban Basu warned state and local tax hikes could happen together, while consultant Rick Rybeck urged taxing land more and buildings less.
