HB 155
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader
House Bill 155 (St. Mary's County Delegation)
Environment and Transportation Budget and Taxation
St. Mary's County - Emergency Services Tax Revenue - Authorized Use
This bill repeals a requirement in St. Mary’s County that excess funds from the emergency
services tax that exceed the budgetary needs of emergency services providers be used to
reduce the emergency services tax rate for the next fiscal year. Under the bill, any excess
funds may be used to reduce the emergency services tax rate.
Fiscal Summary
State Effect: None.
Local Effect: The bill expands the use of excess emergency services tax revenues in
St. Mary’s County. The overall impact will vary each year, depending on the revenue and
expenditure amounts from the Emergency Services Support Fund.
Small Business Effect: None.
Analysis
Current Law: In St. Mary’s County, any emergency services tax revenue that exceeds
the budgetary needs of emergency services providers must be used to reduce the emergency
services tax rate for the next fiscal year.
Background: St. Mary’s County imposes three emergency services taxes to fund
emergency services activities and organizations in the county. They include the fire tax,
rescue tax, and emergency services support tax, which are imposed on real property
assessments in the county. Revenues from the fire and the rescue taxes are distributed
directly to the fire and rescue squads in each county election district and are not included
in the county budget. The tax rates vary by election district, with the fire tax rates ranging
from $0.024 to $0.056 (per $100 of assessment) and the rescue tax rates ranging from
$0.009 to $0.023 (per $100 of assessment). Under the county code, the fire tax rate cannot
exceed $0.056 and the rescue tax rate cannot exceed $0.03 (per $100 of assessment).
The emergency services support tax rate is set at $0.024 (per $100 of assessment).
Revenues from the emergency services support tax are deposited in the county’s
Emergency Services Support Fund. A portion of the funds is distributed to volunteer fire
departments and rescue squads, with each fire department receiving $23,000 and each
rescue squad receiving $19,000. The remaining funds are used to fund advanced life
support operations, recruitment, fire and rescue grants, and length of service awards
program (LOSAP). LOSAP funding accounts for approximately $2.0 million in annual
fund expenditures.
The St. Mary’s County budget assumes emergency services support tax revenues of
$3.1 million in fiscal 2020 and total fund revenues of $3.4 million. Expenditures from the
fund are estimated at approximately $3.9 million in fiscal 2020, resulting in a deficit of
$526,700. In fiscal 2019, expenditures exceeded revenues by $338,500. The county
indicates that there was a $1.1 million fund balance at the end of fiscal 2018 and a
$0.9 million fund balance at the end of fiscal 2019.
Exhibit 1
St. Mary’s County Emergency Services Support Fund
FY 2018-2020
FY 2018 FY 2019 FY 2020
Support Tax $3,037,469 $3,040,000 $3,070,000
Other Sources 300,000 351,880 350,000
Total Revenues 3,337,469 3,391,880 3,420,000
Total Expenditures 3,220,236 3,730,366 3,946,707
Remaining Funds $117,233 ($338,486) ($526,707)
Source: St. Mary’s County Budget
Additional Information
Prior Introductions: None.
Designated Cross File: None.
HB 155/ Page 2
Information Source(s): St. Mary’s County; Department of Legislative Services
Fiscal Note History: First Reader - February 17, 2020
an/hlb Third Reader - February 28, 2020
Analysis by: Michael Sanelli Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 155/ Page 3