Anne Arundel County Executive Steuart Pittman announced tax savings and other key taxpayer benefits in a preview of his FY23 budget proposal, which will be introduced to the County Council on Friday, April 30.
“This budget proposal removes our structural deficit, reduces borrowing, increases reserves, lowers taxes, and provides record investments – in education, public safety, parks, health, and smart infrastructure,” County Executive Steuart Pittman said. “I often say that we are working together to make Anne Arundel County the best place for all. Today, I am saying that we have worked together to create the Best Budget – For All.”
The County Executive’s FY23 budget proposal includes key taxpayer benefits:
Lower-income tax
Last year, the County Executive worked hard to pass the Tax Relief for Working Families Act in the Maryland General Assembly.
This year, the County Executive’s budget proposal uses the bill’s new authority to lower the income tax rate on the first $50,000 of taxable income for every taxpayer, from 2.81% to 2.70%.
This will save each taxpayer up to $50, and keeps Anne Arundel County’s income tax rate the lowest in the Baltimore region.
Property tax rate set below the cap
Anne Arundel County’s property tax revenue cap went into effect in 1993.
Since that time, the property tax rate has been set at the maximum level allowed in 24 out of 28 years. This year, that rate is 96.3 cents per $100 value.
In the FY 23 budget proposal, the County Executive calls for a rate 3 cents lower, 93.3 cents. This saves the average homeowner $100, and keeps the County’s property tax rate significantly lower than any of its central Maryland neighbors.
Structural deficit eliminated
The County Executive’s FY23 budget proposal completely eliminates the structural deficit.
Reduced Borrowing
For the first time ever, the county will reduce borrowing for capital projects, from $170 million to $160 million.
That is possible because conservative budgeting left a fund balance that allows us to invest a record $205 million up-front – or paygo – protecting future taxpayers.
Rainy Day Fund
The County’s record rainy day fund impressed the bond rating agencies by showing the County is well-protected from future economic downturns.
The County Executive’s FY23 budget proposal grows that fund again – to the maximum allowable by law.
“For the last three years, the county adopted responsible budgets that have positioned us on a strong fiscal foundation,” said Chris Trumbauer, Budget Officer. “We continue to see the benefits of that strategy, with a proposed fiscal year 2023 budget that secures our AAA bond rating, increases our reserves, lowers the amount of new debt, and cuts taxes for residents.”
McMillan Response
One candidate hoping to unseat Pittman, former Delegate Herb McMillan, offered his perspective on the budget “let’s call what Pittman calls “higher than expected revenues” that led to a massive surplus in county funds, what it really is– money Pittman took from Anne Arundel County’s hard working families with his rain, property, and income tax hikes. And let’s not forget the higher trash fees he imposed too.”
McMillan continued, “The county’s surplus is largely a result of Pittman’s tax hikes; he took more money from the people than necessary and made the county treasury richer. Now more than ever, the hard-working families of Anne Arundel County deserve to have their money back where it belongs– in their pockets. Raising county income taxes by 12%, and then giving back less than 1% of the increase is not tax relief, it’s an election year gimmick.”
McMillan has proposed a Tax Cut ‘N Cap that would give a 12% income tax cut to everyone, so you can increase the size of your bank account instead, and then cap county income taxes so politicians can’t raise them without a voter referendum.
“Let’s put county surplus funds back in the pockets of the people who earned the money, instead of the county’s savings account. I’ve cut taxes before and I’ll do it again. As your next County Executive, I promise all of our hard-working families, veterans, seniors, and small business owners that the real tax cuts you deserve are on the way.”
