February 19, 2009
Dear District 6 Constituent:
I thought it might be useful if I provided some information which may help you
in understanding the County’s current financial situation. I have never
known Prince George’s County to be as challenged financially as we are today,
because of the global economic downturn we are currently experiencing.
This budget cycle will be one of the most challenging in the County’s history.
In order to meet the revenue shortages the County Executive has been considering
several ideas and proposals in order to balance the budget. Unlike the
Federal government, the County must have a balanced budget by June 1st.
The County Executive will submit his proposed spending plan to the County
Council on March 16th, as required by the Charter. A continuing
erosion of the national economy and the housing market, and deeper cuts in State
aid than anticipated, have combined for local budget
deficit projections exceeding $130 million. Inaction on the County’s part
could lead to the need for devastating personnel actions, including public
safety layoffs.
In an effort to address this immediate fiscal crisis, the Council recently voted
to affirm the County Executive’s proposals which he will take to Annapolis for
consideration by State legislators. However, this vote which expressed
only the Council’s position, does not allow for any such implementation.
Neither the County Executive nor the County Council has the authority to raise
or implement taxes. Decisions on such matters are carefully considered by state
representatives.
I encourage you to contact the Governor,
http://www.governor.maryland.gov/mail/ promptly
regarding his proposed cuts to the County’s appropriation, and the members of
the General Assembly, who must vote on the State budget as well as the proposed
legislation to alleviate the budget deficit,
http://mlis.state.md.us/mgaweb/mail32.aspx.
I also encourage you to go to Annapolis and provide testimony before the
appropriate General Assembly committees.
The following information about the real property tax may be helpful to you:
Real property is reassessed on a three-year
cycle. The amount of the tax bill is determined by two
factors:
1.
The Assessment.
The annual assessment increases on owner-occupied residential property is based
on the fair market value of the property and are issued by the Department of
Assessments and Taxation, an agency of State Government.
2.
The Property Tax Rate.
Property tax rates are set by each unit of government: the state, counties and
cities. The County’s Real Property Tax is 96 cents per $100 assessed property
value and is mandated to remain at that amount by passage of the 1978 Tax Reform
Initiative by Marylanders -- known as TRIM. This rate can only be changed
by referendum or by enabling legislation from the State.
Please visit:
http://www.dat.state.md.us/sdatweb/stats/09rvpr.html
to obtain more detailed information about the homestead property tax credit
from the State Department of Assessments and Taxation. You
will also be able to view a chart
http://www.dat.state.md.us/sdatweb/homestead_percent.html
which shows that many of the incorporated cities and municipalities in Prince
George’s County presently are authorized the maximum rate of 10%. Scroll
down to see Prince George's County and the affected cities.
I trust that this
information will enhance your understanding of the County’s financial
situation and your property tax determinations and restraints.
In your service,
Sam
P.S. Click here to read the
Spending Affordability Letter (PDF)