FY 23 Approved Budget Book

COUNTY BUDGET POLICIES AND PROCESS

Transfer Tax - A 1% Transfer Tax on any instrument of writing that conveys title to, or a leasehold interest in, real property. The proceeds are distributed 50% to the County’s Agricultural Land Program, and 50% to fund school site acquisition, school construction, or school debt service. Impact Fee - The Impact Fee was imposed in 2004 via House Bill 965. The bill stated that the County Council could impose the collection of a development impact fee not to exceed $10,000 for new construction or development. The revenues from this funding source can only be used for school site acquisition, school construction, school renovation, school debt reduction, or school capital expense. Local legislation followed the enactment of this bill, lowering the impact fee charge in order to provide an economic stimulus to the local housing market during the economic recession. The impact fee charges resulted in $6,000 for a single family detached, $4,200 for a townhouse/ duplex, and $1,200 for all other residential (including mobile homes). Exemptions were made for elderly housing and Continuing Care Retirement Communities. Developer Contributions - Developer contributions are applied to projects that provide facilities in approved subdivisions and represent the developer’s portion of the cost of the project. Other - There are various “other” funding sources which may become available. An example would be a contribution from a Homeowner’s Association. General Fund - The General Fund is the principal operating fund for Harford County Government, and encompasses all financial resources and activities, not required by law or County policy, to be maintained in another specific fund. General fund appropriations are used primarily to finance the administrative activities of the County Government to provide services to its citizens. In addition, allocations of County funds in support of the Board of Education, the Library System, Harford Community College, the Health Department, some State agencies, and certain non-profit and/or community programs are made from the General Fund. General fund revenues are primarily derived from the following sources: • Property Tax - properties in Maryland are assessed by the State on a triennial system to establish the value of a property for taxing purposes. For Corporate and Personal property the tax rate is $2.4448 per $100 of assessed value of properties outside of the towns ($2.1033 plus a $0.3415 “differential” that is dedicated to the Highways Fund). For Real Property the tax rate is $0.9779 per $100 of assessed value for properties outside of the towns ($0.8413 plus a $0.1366 “differential” dedicated to the Highways Fund). • Tax Credits ◦ The Homestead Tax Credit Program - a tax relief program that requires counties and municipalities of the State to impose a property tax assessment cap. Harford County has set the Homestead Credit Percentage at 5%. This credit is automatically processed and applied to the real property tax bill once the homeowner proves principal residence. Operating Funding Sources

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