Carroll County Commissioners Vote Unanimously to Cut Taxes in FY14

The board of Carroll County commissioners voted unanimously on Tuesday to reduce taxes in the fiscal year 2014 budget and use one-time money to help make up for the lost revenue in years to come. 

Under the gun to get the budget together for presentation to the public on Thursday, Tuesday the commissioners were able to agree to reduce the personal income tax, the amusement tax, the hotel tax and the business personal property tax.

Tuesday's vote includes a reduction of the personal income tax by .01 percent, from 3.05 to 3.04 for the next fiscal year beginning July 1 and another .01 percent to 3.03 in fiscal year 2015. Director of Management and Budgets Ted Zaleski said that a .01 percent change would cost the county approximately $200,000 in tax revenue in fiscal year 2014 and $400,000 in years after that.

To "buffer the effects" of that reduction, the commissioners agreed to use $2 million of one-time money available this year in budgets for fiscal years 2014 through 2016. The $2 million will be spread out -- $400,000 in the next fiscal year, $800,000 in fiscal year 2015 and $800,000 in fiscal year 2016.

Also included in the decision was a reduction of the hotel tax from 5 percent to 4 percent in the new fiscal year.

Commissioner Robin Frazier advocated for a larger cut to the hotel tax saying it would help local businesses who host conferences at local hotels and families who host events such as weddings.

Commissioner Dave Roush said he was not in favor of cutting the hotel tax at all. 

“As someone who worked in business, I never once considered the difference between the hotel tax in Carroll County and Frederick County. It would be a mistake to cut that tax at all,” Roush said.

Reducing the hotel tax by 1 percent will cost the county approximately $60,000 in tax revenue in the new fiscal year.

The board voted to reduce the amusement tax from 10 percent to 8 percent. According to the Maryland Association of Counties, Carroll County is one of 6 counties in the state that charged the maximum amusement tax allowed by state law at 10 percent in the current fiscal year.

Reducing the amusement tax by 2 percentage points will cost the county approximately $60,000 in tax revenue in fiscal year 2014.

The commissioner also cut the business personal property tax by 3 cents from 2.545 per $100 to 2.245 per $100, costing the county approximately $150,000 in tax revenue.

The proposed county budget is $486,447,131, a 0.87 percent increase over the current budget. The board is scheduled to present the proposed budget in an open meeting on Thursday at 10 a.m. 

Zaleski will present the budget at the following community budget meetings:

• April 25, 7 p.m. Community Budget Meeting, Eldersburg Branch Library, Large Meeting Room, 6400 Hemlock Drive, Eldersburg
• April 29, 7 p.m. Community Budget Meeting, County Office Building, Reagan Meeting Room, 225 North Center Street
• April 30, 7 p.m. Community Budget Meeting, Taneytown Senior & Community Center, Dining Area, 220 Roberts Mill Road
• May 1, 7 p.m. Community Budget Meeting, North Carroll Branch Library, Large Meeting Room, 2255 Hanover Pike, Greenmount
• May 2, 7 p.m. Community Budget Meeting, Mt. Airy Branch Library, Large Meeting Room, 705 Ridge Avenue

See Also:

• Carroll County Commissioners Vote to Keep Money for Employee Raises in New Budget