The State Department of Assessments and Taxation (SDAT) is required by law to establish a Constant Yield Tax Rate for each county and local jurisdiction. This is an important consumer protection tool for notifying homeowners when jurisdictions decide to raise more revenue.
As property values rise, total tax revenues increase if counties choose to adopt a tax rate that exceeds the Constant Yield Tax Rate. Any increase in revenue that is generated by adopting a real property tax rate that is higher than the Constant Yield Tax Rate is a tax increase, even if the adopted tax rate is the same as the previous year's tax rate.
While SDAT assesses the value of your property, the jurisdiction determines how much tax you will pay.
*Example:* The total taxable assessment for Kent County was $3,000,000,000 on 7/1/2020. The tax rate was $1.022 per $100 of assessed value resulting in real property tax revenue for Kent County of $30,660,000.
Kent County decided to maintain the current tax rate and not adopt the Constant Yield. The total taxable assessment for Kent County was $4,000,000,000 on 7/1/2021. Maintaining the current tax rate generated $40,880,000 which is a tax increase of $10,220,000 in new tax revenue.
If Kent County decided to adopt the Constant Yield Tax Rate, it would have maintained the current tax revenue of $30,660,000.