(4/8) Property tax payments for residents of Emmitsburg who saw an increase in the assessed value of their property will go up an average of 3.7% this year. The increase is a result of the Emmitsburg Town Council unanimously approved maintaining the town’s current property tax rate of .3464 per $100 of assessed value.

According to the state, the estimated assessable base for 2022 increased for the town from $205,155,221 to $212,780,599, or a $7,625,378. At the current tax rate, this will result in an increase of $26,414 in tax revenue for the town.

According to Town Manager Cathy Willets, according to State requirements, if the tax revenue doesn’t change by more than $25,000, the town does not have to hold a public constant yield tax rate hearing, and the ‘tax rate’ can remain the same without input from the community. As this was not the case this year, the council was required to vote on a new ‘tax rate’.

In order to fully offset the effect of increased property assessments the ‘constant yield’ tax rate should have been reduced to .3340 per $100 of assessed value. ‘Constant yield’ is the term applied to a tax rate that maintains the same level of tax revenue from the prior year. A decision not to apply a ‘constant yield’ rate results in an actual increase in ‘out of the pocket’ tax payments by town property holders.

Instead of going with the state’s calculated ‘constant yield’ tax rate, town staff recommended that the council maintaining the current tax rate of .3464, resulting in an additional $26,414 in total property tax payment from town residents.

In January 2021, the state conducted its triennial re-assessment of the ‘value’ of property in town. Changes in a property’s assessment value is phased-in over a three year period. Every year, the state notifies the town what the new total assessment is based upon inclusion of that year’s portion of the phased-in assessment. Also included in the town’s new assessment total are assessments from new constructions in Brookfield & South Gate.

Following the 2021 property re-assessments, the first of the 1/3rd phased increase resulted in the tax revenue increasing of $27,870, based upon the existing .36 tax rate. As a result, the state notified the town that the property tax rate should be reduced to .3464 to maintain the same ‘constant yield’ as the prior year.

Due to a variety of factors, Willits said, including COVID-19 and a delay in information, the town was unable to hold a public hearing and as a result, unable to keep the rate at .36. As a result, the town’s property tax rate was reduced to the state recommend .3464, which while it cost the town $27,870 in additional revenue, resulted in the homeowners not being hit with increased tax payments.

In justifying opting not to go with this year’s state’s proposed ‘constant yielded rate’ recommendation for the second portion of the passed-in assessment cycle, but instead, impose an increase in tax payments on property owners, Willits cited increases in the town’s expenses, such as gas prices, which she told the council are expected to continue to skyrocket, which will negatively effect the town’s budget.

While the new tax rate will result in a 3.7% tax increase on property owners, the proposed increase is only half the Consumer Price Index gage of inflation for 2021 that directly impacts the spending power of the town. However, Emmitsburg’s .3464 tax rate is more then double that of Walkersville, which stands at .1600.

In 2023, the last of the 2021 tax assessment will be fully passed-in and the Town Council will have to decide again on what the property tax rate should be. The next re-assessment of Emmitsburg real property will be in January 2024 and the cycle will begin all over…