In the upcoming FY24 budget, the City wants to keep the residential property tax rate at 30.18 cents; however, it proposes increasing the property tax rate of commercial properties (including apartments and industrial) to 33.18 cents.

The commercial property tax rate increase will help generate more tax revenue to provide more services to our residents.

Other regional towns have similar tax differential rates, a lower rate for residential properties and a higher rate for commercial properties.

For every penny, the special rate is increased – for commercial property and apartments – an additional $170,000 of revenue is generated.

So, an additional rate of:
2 cents (32.18 cents) = $340,000 more revenue
4 cents (34.18 cents) = $680,000 more revenue
6 cents (36.18 cents) = $1,020,000

In the FY24 budget, the City plans to increase the commercial property tax rate by 3 cents.

The FY24 Proposed Budget is balanced on the existing property tax rate of 30.18 cents, not reducing to the Constant Yield Rate.

The residential property tax rate of College Park is the lowest among all municipalities.

The City will hold a public hearing on the proposed budget and Constant Yield Tax Rate (CYTR) for the residential property on May 9, 2023. The State required advertisement for the noncommercial CYTR public hearing will be published in the Washington Post on April 27, 2023, before the public hearing. The City is exempt from a required public hearing on commercial property.