Worcester proposes to preserve property tax rate in FY23 | New
On Tuesday, Worcester County commissioners approved the announcement of a May 3 public hearing to discuss plans for the FY23 property tax rate.
Like many jurisdictions across the country, Worcester County considers a formula called the Constant Yield Tax Rate when deciding where to set property tax. The formula determines the tax rate that will allow the county to receive the same revenue as the previous year. A key feature of this formula is that the actual monetary value of the tax rate may increase – or decrease – while the revenue collected by the jurisdiction remains the same.
The county currently plans to roll over the same tax rate beginning in FY22 and therefore exceed the constant-yield tax rate for FY23,
The county estimates that starting July 1, the real estate tax base will increase 1.9% – from about $16.49 billion to $16.78 billion – according to a memo from the director of the county. county budget, Candace Savage.
If Worcester maintains the current tax rate – $0.845 per $100 of assessment – property tax revenue will increase by 1.9%, resulting in $2.63 million in new property tax revenue. ‘property tax.
To compensate for the increase in assessments and respect the constant return tax rate, the property tax rate should be reduced to $0.8294 per $100 of assessment.
“The county is considering not reducing its property tax rate enough to fully offset the increase in assessments,” Savage wrote. “The county is proposing to adopt a property tax rate of $0.845 per $100 of assessment. This tax rate is 1.9% higher than the constant yield tax rate and will generate (approximately $2.63 billion) additional property tax revenue.
The public hearing is scheduled for 7 p.m. May 3 at the Snow Hill Government Center and will be streamed live on the county’s website.