LA PLATA, Md. (May 4, 2010)—On Tuesday afternoon, April 27, the Charles County Commissioners met with representatives from the Towns of La Plata and Indian Head regarding the FY2011 tax differential the Commissioners may grant to these municipalities. In fiscal year 2010, the tax differential rate for the Town of La Plata was $0.071. The proposed tax differential rate for fiscal year 2011 is $0.085. In fiscal year 2010, the tax differential rate for the Town of Indian Head was $0.023. The proposed tax differential rate for fiscal year 2011 is $0.028.
At the local level, counties and municipalities share in the delivery of public services. To cover the costs of these services, residents of municipalities pay property taxes to both the county and municipal government. To compensate municipalities for services provided in lieu of similar county services, many counties in Maryland have established a tax set-off system by providing either a tax differential or tax rebate to the municipality. A tax differential is a lower county property tax rate within the municipality.
Charles County Department of Fiscal & Administrative Services Director Deborah Hudson noted that the Commissioners have several options with regard to the fiscal year 2011 tax differential for the Towns of Indian Head and La Plata. The Commissioners can decide to:
-- Adopt the fiscal year 2010 tax differential rate
-- Adopt the proposed fiscal year 2011 tax differential rate
-- Lower the proposed tax differential
-- Create a block grant in lieu of a tax differential (as has been done by other counties)
The Commissioners will make their decision about the tax differential for the Towns of La Plata and Indian Head at a later date.
Mayor Roy G. Hale and Town Manager Daniel J. Mears addressed the Commissioners on behalf of the Town of La Plata. Mayor Edward W. Rice, Vice Mayor Dennis J. Scheessele, and Councilwoman Margie A. Posey addressed the Commissioners on behalf of the Town of Indian Head.
Source: Charles County Commissioners