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College Park Reduces its Property Tax Rate

After listening to many of your comments about the City’s tax rate and the proposed budget for the upcoming fiscal year 2022, the City Council reduced City’s rate at this week’s meeting. The reduction in the tax rate will reduce City’s tax revenue by $380,000 in the upcoming fiscal year, but we believe this important reduction will help many of our homeowners who are struggling during this difficult pandemic period, without compromising maintaining the essential services.

At the recent public hearing on City’s property tax rate, some of my Council Colleagues and I asked staff to explore ways to reduce our property tax rates below the current rate of 0.325 cents, as many of our residents have been struggling financially due to COVID-19. A reduction to the CYTR of 31.31 cents from the current tax rate of 32.5 cents would reduce FY2022 property tax revenue by approximately $380,000.

At last week’s meeting, the Council indicated support for reducing the FY2022 proposed real estate property tax rate to the CYTR – 31.31 cents per $100 assessed valuation. The reduction in property tax revenue will be refunded from the City’s allocation of Local Fiscal Recovery Funds (part of the American Rescue Plan). The Council will vote on the amended budget based on the reduced tax rate.

College Park’s tax rate has already been low for some time. It has only the second-lowest municipal property tax rate among all cities in Prince George’s County.

Now that the City Council has decided to reduce the property tax rate to $0.3131 the cumulative tax rate (City + County + M-NCPPC rates) will be $1.5731, which puts us neck and neck to Capitol Heights, which has a cumulative rate of $1.572 (based on FY21 tax rate data). Please see below:

In addition to reducing City Council also amended the budget by adding $40,000 for the literacy/tutoring program for College Park students, and $50,000 for the College Park Restorative Justice Committee work.

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