St. Mary’s Taxpayers Realize a Good Deal
Higher than average incomes and lower than average property taxes gives St. Mary’s taxpayers a big bang for their tax dollars, as seen in a Maryland tax capacity index of the 23 counties.
The bottom line for St. Mary’s taxpayers is that a large proportion of high incomes permit the government to run on lower than average property taxes and an average income tax rate compared with the rest of the Maryland counties.
The index calculates potential local revenues based upon the value of the taxable property within each county and the wealth of its citizens. From that calculation the index assess “tax effort,” which compares revenue capability to actual taxes levied. Based upon those wealth-per-capita calculations, St. Mary’s taxes rank second from lowest among the 23 counties. This means St. Mary’s taxpayers pay smaller amounts of their income and property value to keep their county running than nearly anyone else in Maryland.
As the index makes clear, “Tax effort should not be used to judge whether local governments are taxing too little or too much.” The assessment is merely to show how a jurisdiction’s wealth — the value of its land and the potential income of its citizens — is used.
The spread of income wealth and significant non-taxable property in St. Mary’s County are among the many demographics that contribute to this county’s ability to maintain a low property tax rate and a mid-range income tax range and still provide essential county services.
The ability of Maryland counties to generate revenues from their own sources varies significantly. Local wealth is based upon a jurisdictions taxable property base and its net taxable income. The calculations are combined to measure per capita wealth. There is a wide range in Maryland. In 2012 the figures showed a low of $65,536 in Allegany County in to a high of $359,465 in Worcester County. The statewide average is $144,761, with St. Mary’s County weighing in at $138,971 making it the 11th in Maryland.
Property taxes are counties’ leading source of local revenue. They account for 90 percent of total local taxes collected in Maryland.
Property tax amounts are based both on tax rates set by local jurisdictions and property assessments made by the state.
The assessable base in Allegany County on a per capita basis is the lowest in the state at $53,895 and Worcester the highest at $340,774. The statewide average is $120,672. St. Mary’s weighs in at number 12 with with its per-capita, assessable base of $116,709.
