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County Executive Leopold Criticizes Council Vote to Cut Local Income Tax Rate

Action provides little relief to taxpayers and costs County $8 million

Annapolis, MD (June 21, 2011) - County Executive John R. Leopold today criticized a 5-2 vote by the County Council to lower the local income tax rate because it would provide little relief to taxpayers and cost the County $8 million.

"This pernicious, fiscally irresponsible action could have serious adverse consequences for our County," County Executive Leopold said. "The Council action could jeopardize our AAA bond rating, our collective bargaining process, our level of funding from the State and our quality of life."

The Council voted to lower the income tax rate from 2.56 percent to 2.50 percent. The average benefit to taxpayers is about 50 cents per week, while the loss to funding that provides services is about $8 million. Anne Arundel County already had the lowest rate in the Baltimore-Washington region.

"Anne Arundel County has a structural deficit of about $32 million," County Executive Leopold said. "The County auditor has called the budget 'unsustainable.' Next year the County could be required to pay millions more to fund teacher pension costs."

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