FY 23 Approved Budget Book

GENERAL FUND

FINANCIAL NOTES:

FY 23 Approved Budget

752,570,000

FY 22 Approved Budget

658,625,000

$ increase

93,945,000

% increase

14.26 %

FY 22

FY 23

CHANGE

EXPLANATION OF INCREASE/DECREASE - REVENUES

PROPERTY TAXES:

291,464,000 286,275,500

(5,188,500)

of the FY 23 General Fund of the FY 22 General Fund

FY 23 Approved Budget

286,275,500

38.04 %

FY 22 Approved Budget

291,464,000 (5,188,500)

44.25 %

$ decrease % decrease

(1.78)% Maryland State law provides that all real property is subject to the property tax. Property owners receive a property tax bill each year, which is effective as of July 1st. Properties are reassessed by law once every three years and property owners are notified by the Maryland Department of Assessments and Taxation of any change in their assessment. Assessments are certified to the County where they are converted into property tax bills by applying the appropriate property tax rate. Each year the State reassesses one group, resulting in a complete reassessment of the County every three years. Decreased assessments, regardless of the property type, are fully applied in the first year. The total of the assessed values of local property is the County's assessable base, which can change through reassessment and the loss or gain of building and personal property. For FY 23, the County adopted a tax rate of $0.8413 which is $0.05 lower than last year's tax rate of $0.8913, and $0.423 lower than the constant yield. The decrease of $5.18 million or 1.78% from prior year is due to the lowering of the tax rate below constant yield. Statewide "Group 1" reassessments in FY 23 increased by 12.0% over the past three years according to State Department of Assessment and Taxation. In Harford County, assessments in Group 1, which mainly the northern rural area of the County, grew by 9.6% with residential and commercial assessments increasing by 10.3% and 3.8% respectively.

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