FY 23 Approved Budget Book

COUNTY BUDGET POLICIES AND PROCESS

◦ The Community Association Tax Credit - exempts any real property utilized as a public park, playground, or scenic area, which is owned by a qualifying community or development association. ◦ Agricultural Preservation Tax Incentive - is a tax credit given to land owners in return for their commitment not to develop their farm land for a period of time. ◦ Solar Energy Tax Credit - is a one-time per property credit allowed when a solar or geothermal qualifying energy conservation device is installed. ◦ Enterprise Zone Tax Credit - is granted to properties located within the enterprise zone on the property’s qualified assessment. ◦ County Supplemental Homeowner Tax Credit - provides a credit on real property taxes for homeowners of all ages who qualify on the basis of gross household income. ◦ Landfill Proximity Tax Credit - is provided for residential properties located in close proximity to a County owned landfill. ◦ Real Property Tax Credit - available under specific circumstances for the surviving spouse of a fire, rescue, law enforcement or emergency medical service personnel who died in active service. ◦ Senior Citizens and Veterans Tax Credit Program - provides a property tax credit of 20% of County property tax imposed on the dwelling for certain elderly individuals and veterans. • Income Tax - Maryland counties determine their own income tax rate that is a percentage of the taxable net income disclosed after additions and subtractions to the Federal adjusted gross income. Maryland collects all income taxes then distributes to each local subdivision its share of the annual revenues. Although income taxes are imposed and collected on a calendar year basis, the State distributes the funds to the counties over a 9 month period, distributing Harford County’s receipts over three fiscal years. • Licenses and Permits - are issued for businesses, construction, renovations, cable TV, pets, and marriages. County policy requires an annual review of the cost of issuance incurred vs. the revenue generated. These reviews determine whether the fee imposed needs to be adjusted to be more “cost neutral”. • State Shared Revenues - include jury compensation; a civil defense rebate and a differential for Police Services (determined by the County and Town’s assessable base percentage numbers). • Appropriated Fund Balance - any excess unappropriated fund balance realized at the end of a fiscal year (above the 5% unappropriated fund balance required by County policy) is appropriated into the next fiscal year’s budget. This is treated as “one time” funding for that fiscal year. • Interfund Reimbursement - Portions of revenue and/or expenses incurred by one program but attributable to another program are transferred via Interfund Reimbursements. Highways Fund - The Highways Fund is a separate budgetary/accounting entity as required by County Code. It accounts for dedicated revenues that are legally restricted to expenses relating to highways operations and maintenance, traffic safety, and County related transportation expenses. The Highways Fund principal sources of revenue are a County Property Tax differential, State Shared Highways User’s Tax Revenue, charges for service and Intra-County revenues. Below is a brief description of these primary sources of revenue.

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