CAMBRIDGE, Md. - Some Dorchester County residents may soon pay more in property taxes as county leaders look to close a $6 million budget deficit—partly by ending a long-standing tax rebate for property owners in Cambridge and Hurlock.
County officials say the deficit is largely due to financial obligations imposed by the state.
“There was a lot of unfunded mandates being pushed down on us from the General Assembly and from the governor that we just don't have the revenue to support,” said County Council President Lenny Pfeffer.
To help make up the shortfall, the council is proposing eliminating a tax rebate that has been provided since 2007. The rebate offsets services that city residents already pay for through local taxes, such as police and fire departments and road maintenance.
Cambridge Mayor Lajan Cephas says the proposal amounts to double taxation for city residents.
“The county's burden to address these issues results in a double taxation while city residents and businesses, and that simply is not fair,” Cephas said.
Pfeffer acknowledged the difficulty of the proposal, saying the council is facing tough choices.
“We don't want to see taxes raised for anybody, but we're being mandated by law to pay certain bills,” he said.
If the proposal moves forward, residents of Cambridge and Hurlock could face higher tax bills.
“The 3% property tax increase the County Council is proposing adds another burden of $337,000 for a property tax increase of about $1.3 million,” Cephas said. She added, “Because Cambridge only represents 2% of the land in Dorchester County. However, we are funding about 33% of their budget.”
Cephas said she plans to speak out against the proposal at the county’s upcoming budget hearing on May 6. The council is expected to vote on the measure in late May.
The rebate proposal is just one piece of the larger budget discussion. In April, the county considered raising the 911 emergency service fee attached to phone bills from $2 to $4.25. Leaders have also discussed a 15% property tax increase countywide.
The county must pass its final budget by May 31.