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During his budget message on Tuesday, Wicomico County Executive Rick Pollitt proposed a $0.05 increase in the county’s real property tax rate. This would increase the tax rate from 75.9 cents per hundred dollars of assessed value to 80.9 cents, a 6.59% increase. However, if adopted, this proposed rate increase would also impact two other taxes paid by Wicomico County businesses.
All businesses in Wicomico County pay a personal property tax. This tax, set by Maryland law, is 250% of the real property tax rate. Each year businesses file a return with the county and pay the tax based on the depreciated value of all plant, property, and equipment. This includes furnishings and office equipment.
Some businesses do qualify for a personal property tax exemption for the purchase of new manufacturing equipment. All such exemptions have to be approved by the county council and are contingent upon the businesses adding to their workforce.
Some Wicomico businesses also pay an inventory tax. While we were not able to confirm this, Wicomico County is reported to be the only county in Maryland that assesses a personal property tax on inventory. The rate is the same as the personal property rate and is based on 35% of the value of the inventory.
In a conversation with Pollitt on Monday evening, he explained that the proposed rate real property rate increase was a necessary and a by-product of the revenue cap.
“Over the past several years, we have seen the rate go down because of the cap. Now, if we want to attempt to maintain the same level of services, the tax rate has to go up.”
Many citizens, and some members of the county council, have already expressed concern about the proposed rate increases. Because the personal property rate is tied to the real property rate, concern has been expressed regarding a potential impact on local employment and economic growth.
We called Wicomico Finance Director Pat Petersen to get an explanation of the personal property tax system. While explaining the system she also noted that, because the personal property rate was tied to the real property rate, area businesses have seen a decline in their personal property (and inventory tax) bills over the past several years.
What the final tax rates will be depends on the county council. They can accept Pollitt’s budget (with the included rate hikes) or find enough savings in the budget to remediate all or part of the proposed rate increase.
Chairman of the Committee on Homeland Security, New York Republican Rep. Peter T. King is demanding answers from Attorney General Eric Holder, calling on Holder to explain to why the Justice Department decided not to prosecute the Council on American Islamic Relations (CAIR), Islamic Society of North America (ISNA) and the North American Islamic Trust (NAIT) in a Hamas terror finance case. In a letter to Holder, King questions the credibility of Justice Department for deciding not to prosecute the aforementioned actors in United States v. Holy Land Foundation. “I have been reliably informed that the decision not to seek indictments of the Council on American Islamic Relations (“CAIR”) and its co-founder Omar Ahmad, the Islamic Society of North America (“ISNA”), and the North American Islamic Trust (“NAIT”), was usurped by high-ranking officials at Department of Justice headquarters over the vehement and stated objections of special agents and supervisors of the Federal Bureau of Investigation, as well as the prosecutors at the U.S. Attorney’s Office in Dallas, who had investigated and successfully prosecuted the Holy Land Foundation case,” King wrote. “Their opposition to this decision raises serious doubt that the decision not to prosecute was a valid exercise of prosecutorial discretion.” King requests that Holder respond to his questions by April 25th, including the reason Justice did not pursue cases against the three groups and Omar Ahmad (co-founder of CAIR and former head of a Muslim Brotherhood branch); the person behind the decision to drop the case and if the decision involved anybody from the executive branch; and how will concerns about these groups funding terrorists be handled in the future. King cites a previously sealed “Memorandum Opinion Order” from United States District Judge Jorge A. Solis who refused the three group’s earlier requests not to have their names listed as unindicted co-conspirators. “Judge Solis found that the ‘Government has produced ample evidence to establish the associations of CAIR, ISNA and NAIT with [the Holy Land Foundation, ‘HLF’], the Islamic Association for Palestine (‘IAP), and with Hamas.’ The Court found that the evidence was ‘sufficient to show the association of these entities with HLF, IAP, and Hamas,’” wrote King, clarifying that that State Department has listed Hamas as a terrorist organization since 1997. Read more |
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