Submitted by: Nate Groenendyk
Submitting Department: City Clerk
Agenda Section: Consent
Item Title:
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Hyattsville Ordinance 2025-01: Revisions to City Code Chapter 108, Taxation (Second Reading and Adoption)
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Suggested Action:
recommendation
I move the Mayor and Council introduce Hyattsville Ordinance 2025-01, an ordinance whereby the City Council amends City Code, Chapter 108, Taxation, to revise the Homestead Property Tax Credit program and the local supplement to the state homeowners property tax credit as follows:
Section 108-2: Homestead Property Tax Credit Program
• Amend the effective date to July 1, 2025
• Reduce the taxable assessment cap down from 110% to 106%.
Section 108-3: Local supplement to the state homeowners property tax credit
• Assessed Value Limit - increase to $500,000.
• Combined Net Worth Limit - increase to $400,000.
• Combined Gross Income Limit - increase to $90,000.
• Percent of the State homeowner’s property tax credit - increase to 30%.
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Summary Background:
In 2008, the Hyattsville City Council passed Ordinance 2008-07, which established the “Local Supplement to the State Homeowner’s Property Tax Credit”. This local tax credit, intended for low- and fixed- income homeowners, created a local tax credit valued at 15% of the State Homeowner’s Property Tax Credit for principal residences that have a maximum of $350,000 in assessed value, if the household income is less than $80,000 and the net worth of the household, excluding the principal residence, is less than $200,000. In addition, this ordinance set the local Homestead Tax Credit percentage at 110%.
Housing affordability continues to be a hardship for many Hyattsville residents. While Ordinance 2008-07 was intended to reduce the property tax burden for low- and fixed-income homeowners, it is unclear how effective it has been.
These proposed recommendations as identified in each property tax program will increase the number of homeowners that participate and provide a larger tax credit for property owners that qualify especially low-and fixed income property owners.
Next Steps:
Upon adoption, the Treasurer will notify the Maryland State Department of Assessment and Taxation of the changes.
Fiscal Impact:
If passed, the changes in both property tax credit programs could reduce Real Property Tax Revenues between and estimated $550k to $750k on an annual basis.
City Administrator Comments:
The City can support this program for our eligible residents.
Community Engagement:
Upon adoption, the City will publicly post the ordinance in accordance with the City Charter.
Strategic Goals:
Goal 2 - Ensure the Long-Term Economic Viability of the City
Legal Review Required?
Complete