fy2024 constant yield explanation

Document May 18, 2023 · 1 page(s)

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Explanation of Maryland's FY2024 Constant Yield Tax Rate: the rate that, when applied to new assessments, would produce the same property tax revenue as the prior year and the rules that apply if a taxing jurisdiction considers a higher rate. It requires advance advertisement, a public meeting held 7–21 days after the notice (on or before June 17), and announcement at that hearing of when a proposed higher tax rate will be considered if not approved that day.

Constant Yield Tax Rate property tax public hearing advertising requirements Maryland FY2024 June 17 deadline

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FY24 Maryland Constant Yield
 The Constant Yield concept is that, as assessments rise, the tax rate should
drop to the point that the revenue derived from the property tax stays at a
constant level from one year to the next, thus assuring a "constant yield" from
this tax source. The Constant Yield Tax Rate is simply a property tax rate that,
when applied to new assessments, will result in the taxing authority receiving
the same revenue in the coming taxable year that was produced in the prior
taxable year
 Maryland's Constant Yield Tax Rate Provision gives property owners a voice in
the process before the final tax rates are determined. Its sole purpose is for the
benefit of the taxpayer by giving them an opportunity for input/influence on
the level or property taxation
 It requires each taxing jurisdiction to give advance notice and hold public
meetings prior to the rate setting if they are considering a tax rate higher than
the Constant Yield Tax Rate
 The local taxing authority cannot set a tax rate that exceeds that Constant
Yield Tax Rate until first advertising its intent to do so
 The taxing authority must meet on the day and time shown in the notice. This
meeting must be held between 7 and 21 days after the advertisement is
published. The hearing must be held on or before June 17th
 Afterward, the taxing authority may adopt a resolution or ordinance adopting
a property tax rate in excess of the Constant Yield Tax Rate, but if the
ordinance or resolution adjusting this tax rate is not approved on the day of
the public hearing, the day, time, and place where the resolution or ordinance
will be scheduled for consideration and approval must be announced at the
public hearing