Elkton’s Releases Proposed Budget — Maintains Constant Yield, Increases Cap on Personal Property to Generate More Revenue

Elkton Town Hall, May 14, 2010 – Today Mayor Joseph Fisona released Elkton’s proposed 2011 fiscal year budget, which the town board reviewed at the last workshop.

According to a letter signed by the mayor, the proposed budget includes the adoption of the constant yield tax rate for the third consecutive year.  This rate of 0.4734 for real property represents a 2.0% increase from the FY 2010 rate of $0.464 as the net assessable real property base decreased by the same percentage.  Click here to see the official draft budget.

The business personal property tax rate of $1.11 is unchanged, but the cap on which the rate is applied has been increased from $10-million to $15-million, the first increase since FY 2003.  The increase will generate an additional $117,000 in revenue.   At the May 19th meeting the town will vote on a resolution to amend the town’s policy with respect to taxing business tangle property, in order to develop additional general fund revenue from taxable business assets.  Click here to review the resolution. 

On May 19 at 7:00 p.m. the town will hold a public hearing and the officials will vote on the budget.

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2 responses to “Elkton’s Releases Proposed Budget — Maintains Constant Yield, Increases Cap on Personal Property to Generate More Revenue

  1. Speaking as someone who has had some experience in small businesses in this area, I always found the business personal property tax to be a particularly onerous one. It’s little more than a money grab from a captive audience. To be a business in the first place, you have to buy and maintain the equipment and supplies you need, take all of the risk in starting and operating the company, and you get taxed coming and going on everything from office supplies to actually employing people. This is a tax that really needs to be simply done away with. It’s unfair and bad for business. I know of several contractors who won’t do business in this area simply because of this tax. It’s nice and all to point to this increase in the upper threshold of what’s taxable and I’m sure that extra $117 K they’ll collect will find a use, but look at it another way. In an already struggling economic time, that money could be three or four full time jobs. It’s good to know that our local government is once again funding government jobs at the expense of private sector ones.

  2. Editor – Watershed Chronicle

    Thanks for posting about your experience with the business personal property tax, from the perspective of a small business owner. From my standdoint, it’s one of the things that makes monitoring local government a challenge. There are so many, complex ways that additional tax burden is increased. It’s hard for the average citizen to monitor what they’re doing.

    A few years ago, the town started billing residents for garage collection. That cost burden had previously been included in town services that came out of tax collections, but as revenue needed to increase they simply removed it from general services and started billing citizens.

    Commissioner Piner was talking about that to some degree last week when they started talking about fees going up because of increased costs to the town.

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