Blog Post

Tax Inequities in Shore Counties

Peter Heck • December 12, 2023


Residents of towns in three Eastern Shore counties may not realize they’re paying for services they don’t receive. More precisely, they pay taxes to their counties for services they already pay for with their town taxes.

 

This shouldn’t happen. Legislation by the Maryland General Assembly in 1986 required nine counties to provide some sort of tax set-off for towns that provide their own services, such as police protection and highway maintenance, so that the counties don’t need to provide these services within town limits. This set-off can be a reduced county tax rate a “tax differential” for residents of those towns, or a payment to the towns to defray the cost of those services.

 

However, the other counties, mostly rural, including all counties on the Eastern Shore — the “may" counties as opposed to the “shall” counties, which are required to provide a set-off were merely encouraged (not required) to compensate their municipalities for the services they provide.


The majority of “may” counties have accepted the responsibility to help their constituent towns cover the cost of police protection and the like, but if you live in a town in the counties of Kent, Worcester, or Wicomico, you’re out of luck. The county commissioners in these three counties have so far refused to provide any offset for the difference in services.

 

As Chestertown’s Mayor David Foster put it in a November interview with Common Sense, “If you go back in a 10-year history, those are the three counties that are at the bottom of the barrel,” referring to their commissioners’ refusal to provide any tax set-off for their constituent towns.

 

The amount at stake can be significant. For example, in Chestertown, the 2024 town budget laid out over $2 million for its police department and road repairs while the Kent County budget laid out roughly $8 million for law enforcement and highway maintenance. Chestertown residents pay county property taxes at the same rate as the rest of the county, but do not receive a proportionate share of the county’s law enforcement or highway repair expenditures.

 

To add to the confusion, Kent’s commissioners allocated a “grant in aid” of just over $100,000 annually to Chestertown until 2014, but in the wake of the 2008 recession, the county’s tax revenues sharply declined and the commissioners decided they could not spare the money from their budget. Chestertown’s mayor and council members protested, but to no avail. One Kent County commissioner at the time reportedly said in a candidates’ forum that he wondered if the town even needed a police force.

 

Foster says the three counties’ failure to provide compensation of some sort raises the issues of equity, economic development, and trust in elected officials. The equity issue is clear enough. Town residents pay county taxes for essential services that they do not receive from the county. Instead, the services are provided by the town and are paid for by town property taxes.

 

The trust issue is easy to understand as well, especially when surveys show that trust in government is already at an all-time low, Foster says. Given that county commissioners have promised several times over nearly 10 years to work with the towns to resolve the issue then backed away from that promise the lack of trust is likely to increase.

 

Economic development is an important issue on the Shore. Foster points out that Kent County’s population declined by 5% between 2010 and 2020, with the loss mostly in the under-40 age group, who leave in search of good jobs. To retain young wage earners potential entrepreneurs, homeowners, and taxpayers Shore municipalities need to attract businesses that can provide good jobs. Foster says it’s especially hard for “a high-tax town in a high-tax state” to compete with nearby “tax-free Delaware.”

 

In an August 2023 letter to the Maryland Municipal League, Foster expanded on the economic development issue. He wrote, “Not only does the current Maryland policy create a severe equity problem, but when municipalities are doubly taxed without compensation, this runs directly counter to the Maryland Smart Growth Policy of Priority Funding Areas, which seeks to direct future economic growth toward municipalities and other areas that have the infrastructure to support it. Furthermore, as median household income is frequently lower within the municipalities than in the surrounding areas and property tax ultimately burdens the home renter as well as the homeowner, the current policy is highly regressive. In fact, this often results in low-income residents being required to subsidize their higher-income counterparts living outside the municipal boundaries.”

 

In support of that assertion, Foster points to data provided by the U.S. Census Bureau, showing that median household income in 2017-21 in Chestertown was $44,665, compared to $64,451 in Kent County and $83,877 in the non-municipal areas of the county. Foster believes that removing the current inequitable taxes on Kent County’s municipal residents will ultimately improve Kent County’s economy and allow an increase in services without requiring higher taxes.

 

Foster has been in touch with the Maryland Comptroller’s office, focusing on the economic development implications of the tax differential questions.

 

Along with his two immediate predecessors, Foster has tried to persuade Kent County to join the town in sponsoring an independent study of the tax structure, although the current commissioners have so far balked. However, the National Center for Smart Growth, at the University of Maryland, is organizing a study of the fiscal relationships between several municipalities in Kent, Wicomico, and Caroline counties. “It should be objective and reliable data,” Foster says, and available early next year.

 

Foster has been working with the MML to promote the issue in the General Assembly, the only body with the power to require all counties to provide relief to town residents paying taxes for services they don’t receive.

 

Unfortunately, the Maryland Association of Counties opposes this, making it unlikely that the state legislators will take sides. However, Foster hopes that Gov. Wes Moore will recognize the statewide economic benefits of such a change and be persuaded to take a stand, possibly making it easier to get momentum for a tax relief measure in the legislature.

 

It’s time for residents of affected towns to tell their county officials that they don’t want to pay for services that they don’t receive. As Foster points out, failure to correct this inequity retards economic development and will hurt all residents of the counties that fail to provide some kind of tax relief for their municipalities. It’s something everyone should think about the next time their county officials are on the ballot and make it clear their vote depends on how those officials plan to address the problem.


For additional information, see Property Tax Set-offs, Md. Department of Legislative Services, 2022.

 

 

Peter Heck is a Chestertown-based writer and editor, who spent 10 years at the Kent County News and three more with the Chestertown Spy. He is the author of 10 novels and co-author of four plays, a book reviewer for Asimov’s and Kirkus Reviews, and an incorrigible guitarist.

 

Common Sense for the Eastern Shore

By Elaine McNeil April 9, 2025
The Budget Deficit In a recent debate on closing Maryland’s budget deficit, Minority Leader Jason Buckel, a Republican delegate from Allegany County, made an important point: “The man upstairs has only been there for two, three years. I don’t blame him for our economic failures of the last 10,” referring to Democratic Gov. Wes Moore, who was elected in 2022. Ahead of the 2026 gubernatorial elections, Buckel’s comments highlight a key reality that many of his Republican colleagues seldom admit: It isn’t right to blame Gov. Moore for a budget deficit that has been brewing for years. Now projected at $3.3 billion, Maryland’s structural deficit is a problem that started long before Moore took office. In fact, it was first projected in 2017, during the tenure of former GOP Gov. Larry Hogan. This isn’t an opinion — it’s a fact that Buckel and other lawmakers, including Republican Del. Jefferson Ghrist, have bravely acknowledged. During that same debate, Ghrist remarked that the Department of Legislative Services had warned about this deficit throughout Hogan’s administration, yet he did little to address it. Ghrist pointed out that during Maryland’s “good years,” when the state received a flood of federal covid-19 relief dollars, spending spiraled without regard for long-term fiscal health. Hogan used these one-time federal funds to support ongoing programs, which masked the true state of Maryland’s finances and created an illusion of fiscal stability. Hogan continues to take credit for the “surplus” Maryland had in 2022 — even though experts repeatedly note it was caused by the influx of federal dollars during the pandemic. As Ghrist correctly observed, the lack of fiscal restraint and slow growth during the Hogan years laid the groundwork for the $3.3 billion structural deficit the state faces today. Indeed, Maryland’s economy has been stagnant since 2017, especially in comparison to its neighboring states, well before Moore took office. Compounding these challenges are President Donald Trump’s reckless layoffs and trade wars with our allies. Thousands of federal workers who live in Maryland are losing their jobs, which will cost the state hundreds of millions of dollars in lost revenue. Trump’s tariffs will also put an enormous strain on local businesses, including Eastern Shore farmers, who are now subject to up to 15% retaliatory tariffs on chicken, wheat, soybeans, corn, fruits, and vegetables. FY2026 Budget Considering this grim reality, Maryland’s lawmakers are making difficult, but necessary, decisions to shore up the state’s finances. Gov. Moore and state legislative leaders recently agreed to a budget that prioritizes expanding Maryland’s economy without raising taxes on most residents. In fact, 94% of Marylanders should see either a tax cut or no change at all to their income tax bill under the proposed agreement. Lawmakers also plan to cut government spending by the largest amount in 16 years, while at the same time making targeted investments in emerging industries, such as quantum computing and aerospace defense, so the state is less dependent on federal jobs. While the richest Marylanders might see their income taxes go up, it’s reasonable to ask someone making over $750,000 a year to pay $1,800 more to support law enforcement, strengthen our schools, and grow our economy. As for the proposed tax on data and IT services, these products aren’t subject to Maryland’s sales tax under current law. Maryland leaders want to modernize our tax code by levying a 3% sales tax on these products. Because they don’t raise income taxes on the majority of Marylanders and because state leaders are also cutting spending by billions, these ideas are fair. They’re also necessary after Gov. Hogan chose to kick the can down the road instead of addressing Maryland’s long-predicted deficit and now that Trump’s policies will lay off thousands of Marylanders and his tariffs will hurt our state. By making responsible choices now, Maryland leaders are putting the state on a path to long-term economic stability. Their decisions will help Maryland thrive, create jobs, and invest in the vital services that every resident relies on — without burdening hardworking families. I’m confident Maryland will emerge stronger, more resilient, and ready to lead in the industries of tomorrow. Elaine McNeil is chair of the Queen Anne’s Democratic Central Committee.
By John Christie April 2, 2025
Among Donald Trump’s most recent targets is what he calls “rogue law firms.” At 6pm last Thursday, March 27, he issued an Executive Order (EO) aimed at my old law firm, WilmerHale, as one of those “rogue” firms. Approximately 15 hours later, the firm filed a 63-page complaint challenging the EO on multiple constitutional grounds. The EO is an “unprecedented assault on the bedrock principle that one should not be penalized for merely defending or prosecuting a lawsuit” and constitutes an “undisguised form of retaliation for representing clients and causes Trump disfavors.” And by 8pm on Friday, March 28, a little over 24 hours after the EO was first issued, a federal district court judge in Washington granted a request for a temporary restraining order, blocking key provisions of the EO from taking effect for now. In doing so, the Court found that “the retaliatory nature of the EO is clear from its face. There is no doubt that it chills speech and legal advocacy and qualifies as a constitutional harm.” The Executive Order The EO and a so-called “Fact Sheet” that went with it recites that the Administration is committed to addressing the significant risks associated with law firms, particularly so-called “Big Law” firms that engage in conduct detrimental to critical American interests. Wilmer Cutler Pickering Hale and Dorr LLP (WilmerHale) is yet another law firm said to have abandoned the legal profession’s highest ideals and abused its pro bono practice by engaging in activities that “undermine justice and the interests of the United States.” The specific examples offered in support of this conclusion: The EO asserts that WilmerHale “engages in obvious partisan representations to achieve political ends,” an apparent reference to the firm’s representation of Trump’s political opponents — namely the Democratic National Committee and the presidential campaigns of Joe Biden and Kamala Harris. The EO cites WilmerHale’s “egregious conduct” in “supporting efforts to discriminate on the basis of race,” an apparent reference to the firm’s representation of Harvard in the Students for Fair Admissions litigation. The EO accuses WilmerHale of “backing the obstruction of efforts to prevent illegal aliens from committing horrific crimes,” an apparent reference to the firm’s litigation related pro bono practice and successful challenges to immigration related policies. The EO accuses WilmerHale of “furthering the degradation of the quality of American elections,” an apparent reference to the film’s involvement in challenges to restrictive state voter-identification and voter-registration laws. The EO singles out certain current and former WilmerHale partners, including Robert Mueller, for special criticism by describing Mr. Mueller’s investigation as “one of the most partisan investigations in American history” and having “weaponized the prosecutorial power to suspend the democratic process and distort justice.” The EO then Revokes security clearances held by WilmerHale attorneys; Prohibits the federal government from hiring WilmerHale employees absent a special waiver; Orders a review and the possible termination of federal contracts with entities that do business with the firm; Calls for the withdrawal of government goods or services from the firm; and Calls for restrictions on the ability of WilmerHale employees to enter federal buildings (presumably including federal courthouses) and on their “engaging” with government employees. WilmerHale’s Complaint WilmerHale engaged Paul Clement, a former Solicitor General during the George W. Bush administration and a well-known advocate frequently representing conservative causes, to represent the firm in this matter. Assisted by some 15 WilmerHale litigators, the complaint names the Executive Office of the President and 48 other Departments, Commissions, and individual Officers in their official capacity as defendants. A variety of constitutional violations are alleged: The First Amendment protects the rights of WilmerHale and its clients to speak freely, and petition the courts and other government institutions without facing retaliation and discrimination by federal officials. The separation of powers limits the President’s role to enforcing the law and no statute or constitutional provision empowers him to unilaterally sanction WilmerHale in this manner. The EO flagrantly violates due process by imposing severe consequences without notice or an opportunity to be heard. The EO violates the right to counsel protected by the Fifth and Sixth Amendments and imposes unconstitutional conditions on federal contracts and expenditures. The complaint alleges that WilmerHale has already suffered irreparable damage in the 16 hours since the EO issued. The firm has been vilified by the most powerful person in the country as a “rogue law firm” that has “engaged in conduct detrimental to critical American interests. The EO will inevitable cause extensive, lasting damage to WilmerHale’s current and future business prospects. The harm to the firm’s reputation will negatively affect its ability to recruit and retain employees. Further Proceedings Temporary restraining orders constitute emergency relief upon a showing of likely success on the merits and irreparable harm were the temporary relief not entered. A later hearing will be held in order for the judge to determine whether a preliminary injunction should be issued preventing the government from executing the EO during the continued length of the litigation. Editorial Note: In light of the recent capitulation of several “Big Law” firms to the unreasonable and unconstitutional attacks by the Trump administration, WilmerHale is providing a blueprint for resistance as it fights back. More law firms need to be inspired by WilmerHale’s response to Trump’s demand for revenge on his so-called political enemies. John Christie was for many years a senior partner in a large Washington, D.C. law firm. He specialized in anti-trust litigation and developed a keen interest in the U.S. Supreme Court about which he lectures and writes.
By Bill Flook & CSES Staff April 2, 2025
Tom Timberman was one of the founders of Common Sense for the Eastern Shore. Sadly, he died last month. He will be missed. Common Sense exists because of his leadership and inspiration. His vision was to provide factual and timely commentary and analysis on topics that concern people who live and work on Maryland's Eastern Shore, and to provide factual reporting to help readers shape their own lives. It was important to Tom, as it is today to the editorial board, for Common Sense to help voters to be aware of the effects — personal and local — of decisions made at the federal and state levels. Especially relevant now is this from our Mission Statement: “We seek an America responsive to its citizens and its constitution.” We reprint this tribute from Bill Flook, President of the Democratic Club of Kent County : Many of us were deeply saddened to learn of TomTimberman’s passing last week. It’s hard to believe that such a strong Democratic voice is gone. I worked with Tom for much of the past decade on many good projects promoting our values and activities, including helping on his campaign for County Commissioner, and I’ll particularly miss following his lead as Captain of the Dawn Patrol. Our group met most Saturday mornings for coffee and some good chat, before heading up to Dems HQ to set up the booth there. We’ll miss you, Tom!
By Jared Schablein April 2, 2025
After over 12 hours of debate over two days (and a whole circus from the other side), the Maryland House of Delegates has passed HB 350, this year's state budget, and sent it to the State Senate. This budget is a deal between House Democrats, Senate Democrats, and Governor Wes Moore. It faces our state's $3 billion deficit head-on not with fantasy math, but with real choices: smart cuts and fair new revenue. This is what grown-up governing looks like. How We Got Here: Maryland’s budget problems didn’t start overnight. Leaders began warning about a shortfall in 2017 when Governor Larry Hogan was in office. Hogan made our state budget bigger every year, but the legislature wasn’t allowed to move money around or make common-sense changes. By law, they could only make cuts. In 2020, Maryland voters changed that. Starting in 2023, lawmakers finally got full power to shape the budget, not just cut from it. Instead of fixing the problem, Governor Hogan used federal COVID relief to hide our fiscal instability. Then, before leaving office, he drained our state’s savings from $5.5 billion to $2.3 billion to boost his image. Today, we are facing a new fiscal arsonist. Donald Trump’s trade wars and cuts to federal programs hit Maryland hard. We have more federal jobs and agencies than any other state, so we felt it worse than most. A University of Maryland study says Trump’s tariffs alone could cost us $2 billion. Trump/Musk's policies caused over 30,000 people in Maryland to lose their jobs, offices to shut down, and promised investments to disappear. These federal cuts added another $300 million to our budget deficit. COVID relief gave us a short break and even created a fake surplus under Hogan, but that money is gone now. Meanwhile, housing, healthcare, and college prices have gone way up. The Trump–Musk White House is making it worse by cutting even more funding, eliminating research, and gutting the services we rely on. That’s why Maryland had to act. We needed a real plan to protect working people, fund our schools and hospitals, and keep our state strong. Why Cuts Were Needed Trump’s trade wars and cuts to federal agencies hit Maryland harder than any other state. A University of Maryland study says those tariffs alone could cost us $2 billion. That hurts real people: A chicken farmer on the Eastern Shore is paying 25% more for fertilizer. A dock worker in Baltimore has fewer ships to unload. A restaurant owner in Western Maryland can’t afford eggs and tomatoes. We’ve lost over 30,000 jobs. Offices have shut down. Promised investments disappeared. The decisions of the Trump/Musk administration added $300 million to our state deficit.
No mandate. Image: CSES design.
By Jan Plotczyk November 19, 2024
 The 2024 presidential election was over swiftly. The Associated Press called it at 5:34 am on Nov. 6, and by 8 am, President-elect Donald Trump was crowing about the “ historic mandate ” given to him by the American people. A “mandate”? Turns out not. Trump jumped to an early lead on election night, but in the following days, his lead diminished as mail-in and provisional ballots were counted. A Baltimore Banner article on Nov. 6 highlighted the “Trump shift” that had occurred in every political subdivision in Maryland, even in counties where Democrat Kamala Harris won. This shift described the increase in Trump support since his loss to President Joe Biden in 2020 . As of Nov. 6, the biggest Trump shift was an 8.1% increase in his support in red Cecil County, but there were also shifts in the central Maryland counties that are the state’s Democratic strongholds — 4.3% in Montgomery and lesser amounts in other blue counties. Fourteen counties recorded shifts of 4% or more. On the Eastern Shore, every county had a shift over 4.5% except Talbot (2.7%), and the five largest shifts were Shore counties. For the state’s Democrats, it did not look encouraging. But as mail-in and provisional ballots were counted across the state, the Trump shift was reduced everywhere, and as of Nov. 16, disappeared altogether in Garrett (-1.2%) and Charles (-0.1%) counties. The shift dropped below 3% in all Maryland counties. Cecil’s shift became 2.1%. Montgomery’s shift dropped to 2.9%. Talbot’s shift declined to 0.2%, lowest of the Eastern Shore counties. Now, instead of five, only two of the highest five shifts were in Eastern Shore counties. The red bars in the chart below represent the Trump shift percentage values as of Nov. 16, in ascending order. The grey bars represent the misleading (and ephemeral) Trump shift percentage values as of Nov. 6. Please note the degree to which the Trump shift lessened and disappeared in the 10 days after the election. Another red mirage. But if you had only read the Nov. 6 article and not looked at the updated data, you would have been fooled into thinking Trump support is stronger than it is.
School board elections. Image: CSES design
By Jim Block November 19, 2024
How many times were Common Sense readers told that the 2024 election would be the most important ever? Whoever the winner, people knew the results would not unite the country but further divide it. One place of divisive conflict on the Eastern Shore, indeed almost everywhere, is the local school system. Two extreme right-wing organizations targeting school board control have made their presence known on the Eastern Shore. Moms for Liberty , according to its website , wants “to empower parents to defend parental rights at all levels of government.” In the recent election, Moms for Liberty endorsed at least two Cecil Co. Board of Education candidates. One of them, Sam J. Davis (who got 44% of the total vote ), lost his race to Diane Racine Heath (55%). Another Moms for Liberty candidate, Tierney Farlan Davis, Sr. (57%), defeated Dita Watson (42%). Both defeated candidates were endorsed by the Cecil County Classroom Teachers Association . A second active conservative organization is the 1776 Project PAC . This PAC’s mission statement declares that it “is committed to reigniting the spark and spirit of that revolution by reforming school boards across America. Since progressive-led efforts to lockdown schools during the covid epidemic, test scores have declined, parents and students are increasingly worried about violence both in and out of the classroom, while politicians and activists push their own ideology.” Of the eight Eastern Shore school board candidates the 1776 PAC supported, three were unopposed. The five competitive races were won by 1776 PAC candidates; the average margin of victory was about 12%. The Talbot Co. candidate Ann O’Connor wrote a piece for the Delmarva Times and the Easton Gazette denying that her candidacy had received “endorsements from Moms for Liberty or any other group.” On the other hand, on X , we read that the 1776 PAC gave “huge congratulations to Ann O’Connor . . . for being elected to the now-conservative Talbot County Board of Education!” One might wonder whether or not any group gave her an endorsement. In a late October, the Washington Post ran a long story about the significant partisan cash flowing into Maryland school board races. In theory, Maryland school board elections are nonpartisan, because state law prohibits party labels on school board ballots. On the other hand, according to the Post, the 1776 PAC “has spent a total of $75,409.58 on 13 Maryland school board candidates across Cecil, Queen Anne’s, Talbot, Calvert, Somerset and St. Mary’s counties.” That sum and the other money spent on school board candidates does not indicate the strength of passion in the candidates and their supporters. Our governments are obligated to allow, if not to support, all citizens in their exercise of their First Amendment rights. Assuming freedom of speech applies to students and teachers , the last thing public school administrations should do is wrongly to restrict material that teachers teach and students learn. But when students learn that school systems inappropriately control what is taught, they will be at best confused. On one hand, they are taught they have free speech; on the other hand, they learn that in school, they don’t. Have we just been through American history’s most important election? If these school board elections diminish our Constitutional rights, the sad answer is yes. Jim Block taught English at Northfield Mount Hermon, a boarding school in Western Mass. He coached cross-country and advised the newspaper and the debate society there. He taught at Marlborough College in England and Robert College in Istanbul. He and his wife retired to Chestertown, Md., in 2014. 
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