Submitted by: Ron Brooks
Submitting Department: Finance
Agenda Section: Discussion
Item Title:
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City of Hyattsville Property Tax Relief Programs: Administrative Recommendations
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Suggested Action:
recommendation
Presentation and Council discussion
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Summary Background:
The City of Hyattsville issued a Request for Proposal (RFP) for a consultant to study the City’s current Homeowner’s Property Tax Credit Program and the Homestead Property Tax Program. The City’s objective was to determine if modifications needed to be made and the impact to the City and homeowners. The consultant reviewed the current Homeowner’s Property Tax Credit Program and the Homestead Property Tax Program, and asked to identify other effective tools that, in the aggregate, will help to provide financial relief from the year-over-year increases that impact low and fixed-income homeowners. The administration received multiple proposals and with Council approval awarded a contract to PFM Group Consulting LLC to facilitate the reviews. While the City’s property tax rate has not been raised in over a decade, the amount of property taxes paid by homeowners has increased and will reasonably continue to increase annually with rising home values in the City of Hyattsville. This has created a financial hardship for homeowners in low and fixed-income situations.
Following the study, the consultant provided a final report with recommendations to improve these programs and/or provide other alternatives to the City’s property tax credit relief programs.
Next Steps:
After presenting the findings of the study to the City Council, the administration will provide recommendations for council consideration and discussion.
Fiscal Impact:
As a result of adding new tax credit programs and adjusting current programs, the anticipated loss in General Fund Real Property Tax Revenues is estimated to be between $500k and $650k annually.
City Administrator Comments:
For discussion. If the recommendations are approved, the Treasurer will address funding offsets to adjust for anticipated loss of General Fund Real Property Tax Revenues.
Community Engagement:
A public hearing may be required.
Strategic Goals:
Goal 4 - Foster Excellence in all City Operations
Legal Review Required?
Pending