Caroline County holds tax-differential hearing; officials signal cautious optimism on future rate reductions

Caroline County Acting Finance Director Stacy Seward told commissioners at the March 10 meeting that the county will hold current tax rates and municipal differential rates the same for now and will hold a second public hearing on May 5.

"As we start the budget process, we're holding all tax rates and differential rates the same," Seward said, then listed current differentials: Federalsburg 8¢, Greensboro 6¢, Preston 1¢ and Ridgely 5¢.

No one from the public signed up to testify on the differential rates and the commissioners closed the hearing by voice vote.

In remarks after both hearings, Vice President Larry Porter thanked department staff for keeping their budget requests under control and said he would like to see a property tax reduction "depending on other unforeseen things that would be coming down the road." Porter warned that the county's largest budget portion is the Board of Education and that state formula changes can affect the county share. He also identified a likely large upcoming capital need: a new middle school with the county’s share estimated "in and around the area of $25,000,000."

President Travis Breeding added that the county experienced about a $2,000,000 increase in real property tax revenue between FY2025 and FY2026 and expects roughly the same year-over-year growth for FY2026–FY2027, but he cautioned that such revenue growth should be approached carefully. Breeding said the county should save for capital needs rather than rely on borrowing, and noted the county still maintains roughly 80 miles of dirt road that will require long-term investment.

The commissioners adjourned following the closing motions. A second public hearing on tax rates is scheduled for May 5, where proposed rates will be discussed in greater detail.