Council introduces one-year suspension of Dorchester County building excise tax

The Dorchester County Council on May 28 introduced an ordinance to repeal and reenact Section 144-36.1 of the county code to suspend the Building Excise Tax for a one-year period beginning July 1, 2024 and ending June 30, 2025. Clerk Donna F. Lane presented the measure for introduction and the Council agreed to proceed with publication for a future public hearing.

Susan Webb, Planning & Zoning Director, told the Council that a majority of counties assess building excise taxes, with amounts that can range from about $1,000 to $50,000, and that such taxes historically have not prevented development. Webb said Dorchester’s suspension aims to ease the effect of rising building-material and construction costs on permit applicants.

The ordinance summary cites MD. CODE ANN., LOCAL GOV'T § 20-805 as the enabling statute for the County Council’s action. The ordinance would exempt building permits filed between July 1, 2024, and June 30, 2025 from the excise tax if the Council moves to adopt it after the public hearing.

Why it matters: Suspending the excise tax could lower up-front costs for builders and homeowners seeking permits during the suspension period and is intended as a short-term response to higher construction costs.

What’s next: Publication and a public hearing will be scheduled to allow public comment before the Council takes any final action.