Changes Made To Bill To Set Income Tax Rate In Frederick County

It delays a vote by the County Council on the proposed fiscal year 2024 budget.Frederick, Md (KM) An amendment to a bill which sets the income tax rate for fiscal year 2024 in Frederick County was adopted Tuesday night by the County Council. The measure was sponsored by Councilwoman MC Keegan-Ayer, who says it will reduce the ate for lower income residents, and increase it for those with higher incomes. “My efforts were solely to protect more of the income earners who might be considered middle class from seeing their taxes go up by eight percent,” she said. “I had to play around with the brackets to try and get four colleagues to support my efforts.”Under the amendment, taxpayer filing as single, married filing separately or dependent with a net taxable income of between $1 and $25,000 would be taxed at 2.25 percent. The rate would be 2.75 percent for taxpayers who file as single, married filing separately or dependent and have a net income of  between $25,001 to $50,000.   For taxpayers filing as single, married filing separately or dependent and have a net taxable income of between $25,001 but not exceeding $50,000 would be taxed at a rate of 2.7 percent. For those taxpayers filing as single, married filing separately or a dependent with a net income of between $50,001 to $150,00 would be taxed at 2.96 percent. The rate for taxpayers filing as single, married filing separately and dependent with a taxable income of  $150,000 or more would be taxed at 3.2 percent. Those filing joint status, head of household and qualified widow, with a taxable income of  $1 to $25,000 would be taxed at 2.25 percent. Joint status filers, including head of household  and qualified widow, with a taxable income of between $25,001, but not exceeding $100,000 would be taxed at 2.75 percent. Those persons filing joint status, including head of household, joint and qualified widow, whose net taxable income is between $100,000 and not exceeding $150,000 would be taxed at 2.96 percent. And those who file joint status, including head of household, joint or qualified widow, and have a net taxable income of $250,001 or more, would be taxed at 3.2 percent rate.Council Vice President Kavante Duckett voted against the amendment. “The reality is she {Councilwoman MC Keegan-Ayer} is saying she wants to help the bottom tier. She wants to help low earners. She wants to help those who are vulnerable. She wants to help our kids. That’s what I’m hearing. Yet the folks at the top shouldn’t have to pay for that help. So it sounds to me she wants to protect the top more than she wants to protect the bottom,”: he said.Council President Brad Young said he support the amendment “reluctantly.” “We have a lot of folks sitting out here–educators, teachers, support staff, administrators–who apparently under this bill would like to be in the middle class because that put them up around $150,000 in pay,” he said. “What this would do is cut $3.2 million out of our budget each year going forward that we could help these folks out.”There were a number of teachers and school support employees in the first floor hearing room at Winchester Hall where the Council was considering this amendment. Those who spoke called for  keeping the income tax rate as it is, and to fully fund the Board of Education’s budget request.Councilman Steve McKay also supported the amendment, but railed against the County’s spending habits. He said the County has generated well over $250 million total in surpluses over the years. “We didn’t retire debt. We spent it every year, just like we’re proposing to do in this budget, FY ;24, putting $50-million of last year’s surplus. And what are doing: spending it,” he said.Because this amendment represents a substantial change in the income tax bill, the Council has scheduled another hearing on this legislation on Tuesday of next week. That’s also when board members are expected to take action on the proposed fiscal year 2024 budget and set the property tax rate.By Kevin McManus