The Constant Yield Tax Rate is a State Law that exists solely for the benefit of the taxpayer.
Prior to February 15, the Department of Assessments and Taxation notifies the counties, Baltimore City, and municipal taxing authorities of the tax rate that would produce the same revenue from the property tax as was produced the year before. The rates certified to the local governments are known as the "Constant Yield Tax Rates" and are based on the new, net assessable base for that jurisdiction. New property or construction added to the rolls for the first time is subtracted from the calculation and allowances for abatements and other deletions are deducted in arriving at the net assessable base for this purpose.
Prior to 2024, the local taxing authority could not set a tax rate that exceeded that Constant Yield Tax Rate until first advertising its intent to do so. Now, the local taxing authority cannot set a tax rate that exceeds the current taxable year’s real property tax rate until first advertising its intent to do so. In addition to publishing an advertisement, the taxing authority must place a notice on its website. If the taxing authority does not have a website, it must post a notice in a place that is easily accessible to the public.
The taxing authority must meet on the day and time shown in its notice. This meeting must be held between 7 and 21 days after the advertisement is published. By law, the hearing must be held on or before June 17th. Afterward, the taxing authority may adopt a resolution or ordinance adopting a property tax rate in excess of the current taxable year’s real property tax rate. However, if the ordinance or resolution adjusting this tax rate is not approved on the day of the public hearing, the day, time, and place where the resolution or ordinance will be scheduled for consideration and approval must be announced at the public hearing.
The Department of Assessments and Taxation is charged with the responsibility of calculating the Constant Yield Tax Rate. In addition, the Department also oversees and monitors the advertising requirements. If violations are detected, the Department must report them to the Attorney General who must investigate and take appropriate legal action to effect compliance.
