Maryland local governments examine if they should have more power to raise property taxes

Maryland’s housing market is out of reach for 51% of moderate-income residents: now, a state task force in Maryland is considering whether counties and municipalities should have more power to raise property-related taxes and fees. Presently, counties in Maryland can raise property taxes without the state’s approval, but the state develops the formula to calculate the tax rate.

“Lori Graff, CEO of the Maryland Building Industry Association, said additional taxes and fees would add to the cost of buying and building homes and could discourage construction in Maryland. Housing costs have also prompted some Marylanders to consider leaving the state. A 2024 poll conducted by the Maryland Realtors found that 30% of voters aged 18-34 were considering leaving because of housing costs, while 28% of those aged 35-49 were considering an out-of-state move,” Tinashe Chingarande writes for the Baltimore Sun.

The task force’s final meeting is in November and its ultimate recommendations will go to the governor. The General Assembly has the final say on any changes to the local taxing authority.