TAX NEWS - June 2010

Maryland Tax: Funkstown raises tax and water rates, cuts back trash pickup

FUNKSTOWN — Funkstown residents will see their trash collection cut to once a week and their property tax and water rates increase, but yard waste collection will remain at once a week.

Who will provide the trash and yard waste service is in dispute, with a resolution expected today.

Town Council members on Monday unanimously approved the town's first property tax rate increase in 21 years. The 6-cent increase makes the rate 28 cents per $100 of assessed value. The council also unanimously approved the general fund and enterprise fund budgets.

A few residents inquired as to the need for such increases during a public hearing before Monday night's meeting at Town Hall.

The property-tax rate hike will help the town deal with declining state highway user revenue, decreases in the assessed value of properties in town and a new county property tax structure.

Town Clerk/Treasurer Brenda Haynes said each cent in the town's property tax rate is equal to approximately $4,500 in revenue for the town. The increased town tax rate means the average town property tax bill will increase $20 to $30 a year, but county property tax bills should go down about $8 to $9, she said.

The council also unanimously approved a 4.5 percent water rate hike, passing along an increase from the town's supplier, the City of Hagerstown. That will affect sewer bills as well as water use is part of the sewer rate formula.