The Constant Yield Tax Rate is set by a complicated formula developed by the State of Maryland. This is one of the more confusing parts of our budget process.

Each unit of Maryland government (state, county, municipality), set property tax rates. Assessments are based on the fair market value of the property and are issued by the Department of Assessments and Taxation, an agency of our State government. Property tax bills are issued in July/August of each year by Maryland’s 23 counties and Baltimore City, as well as the 155 incorporated municipalities in Maryland.

Our County contains three reassessment regions (cycles), which allows for approximately 1/3 of the property accounts to be reassessed each year, called Triennial Assessment Cycle. During the Triennial Assessment Cycle, a property is reassessed once every three years and the property owner is notified of any change in their assessment in late December.

The Constant Yield Tax Rate is a Maryland State Law that exists for the education of the taxpayer. The constant yield tax rate is the amount that property taxes can be set to bring in the same amount of revenue as the previous tax year. The tax rate can stay the same, but the constant yield will increase or decrease due to the increase or decrease in property assessments. If the property tax rate stays the same but property assessments go up, this will result in an increase of County revenues. Homeowner’s, please remember that you can appeal your property assessment when it arrives from the state.

During this year’s Maryland General Assembly session, there were two bills introduced that dealt with the Constant Yield Tax Rate. HB 508, sponsored by Delegate Mike McKay, proposed to modify specified advertising requirements that local jurisdictions must follow regarding the constant yield tax rate. Specifically, the bill requires local jurisdictions that propose a real property tax change from the prior year to advertise in the same manner as required if the local jurisdiction was proposing the tax rate as a property tax change as opposed to a real property tax increase, as required under current law. HB 445 sponsored by Delegate Stephanie Smith (and cross-filed by Senator Antonio Hayes), proposed to modify specified advertising requirements that local jurisdictions must follow regarding the constant yield tax rate by establishing a separate notification requirement for jurisdictions that maintain their real property tax rate from the prior year. Neither of these bills made it out of committee.

I want to remind everyone that the Primary Election has been scheduled for July 19th. If you have not registered to vote, please do so as soon as possible.

You can call my office at 301-600-1034 or email me at MBlue@FrederickCountyMD.gov.