More News

State Sen. James Rosapepe (D-Dist. 21) of College Park plans to introduce legislation in the next General Assembly session that would speed up the process for newly annexed communities in Laurel to get a break on county property taxes.

Currently, municipal officials must petition the state legislature to change the taxation zone for new communities to qualify for a tax differential, which allows municipal residents to pay less to the county than residents of non-incorporated areas because they also pay the city for services.

Michele Saylor, Laurel's director of budget and personnel services, said Laurel homeowners whose properties were annexed after 1994 pay 23 cents per $100 of assessed value, whereas other city residents pay only 6 cents per $100 of assessed value.

"It's a double taxation," said Kimberly Rau, clerk to the Laurel City Council.

Kristie Mills, the city administrator, said Laurel has petitioned the assembly three or four times in the past 15 years. In each instance, legislation was passed to allow the new areas a credit with the county parks services, she said, because the double-tax is usually seen as a loophole.

The most recent effort includes the neighborhoods of Contee Crossing and Laurel Ridge, which were annexed in the past five to seven years, Mills said.

Kevin Kronemberg, a Contee Crossing resident, brought the current issue to Rosapepe's attention about two weeks ago. Kronemberg, who is a board member of the Contee Crossing homeowners' association, said he and his neighbors discovered the double taxation when their first property tax bill was about $3,000 higher than they had expected.

When he purchased his property in 2006, Kronemberg said he was told he would pay only $3,000 in property taxes because the Contee Crossing development was in unincorporated Prince George's County. But the neighborhood was actually annexed into the city several years ago.

"I felt like I was deceived," Kronemberg said. "Most of the neighbors felt like they were deceived." Further investigation into his property tax bill uncovered the park services issue, he said.

Rosapepe said he plans to sponsor legislation that would provide tax relief for the two newest communities, and hopefully change the requirements so new areas will automatically get the tax zone exemption and municipalities will not have to go to the General Assembly once a new area is annexed.

"But if the General Assembly isn't willing to do it going forward, we at least want to get it for the folks who are now being overtaxed," Rosapepe said.

Issues with overlapping taxes have occurred in other parts of the county, usually concerning how much certain municipal services are worth and how much relief should be provided, Rosapepe said.

"The counties and the cities, they don't fight about it, but they have different views," he said.

Kronemberg said the Contee Crossing homeowners' association has invited state delegates and city officials to its next meeting in an effort to continue to raise awareness of the property tax issue.