FY 23 Approved Budget Book

HARFORD COUNTY MARYLAND FISCAL YEAR 2023 BUDGET SUMMARY

REVENUES A more in depth discussion of individual revenue streams can be found in each "Fund" Section of the document.

For Fiscal Year 2023, Property and Income tax revenues are estimated to generate 67% of the total of all revenue.

Property Taxes FY 23 Approved Budget FY 22 Approved Budget

328,163,300 331,112,000

34.77 % of the Total All Funds FY 23 Operating Budget 39.57 % of the Total All Funds FY 22 Operating Budget

$ decrease % decrease

(2,948,700)

(0.89)%

Property Tax revenue estimates are based on a thorough analysis of lien sheet activity, deed activity, building permit data, residential sales, Transfer Tax transaction data, and Maryland State Department of Assessments and Taxation Distribution Tracking Information. Maryland State law provides that all property is subject to the property tax. Properties are reassessed by law once every three years and property owners are notified by the Maryland State Department of Assessments and Taxation of any change in their assessment. Properties are required to be assessed at their current market value so that each property owner pays their fair share of local property taxes. In FY 23, the County is adopting 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 constant yield tax rate is the tax rate that a jurisdiction would have to impose in order to obtain the same amount of property tax revenue in FY 2023 as it received in FY 2022. The decrease of $2.9 million or .89% from prior year is due to the lowering of the tax rate below constant yield. The State reassesses all properties on a triennial basis. 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 covers 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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