Maryland Counties to Annapolis: Trust Us With Our Own Tax Policy

By MDBayNews Staff

As the 2026 session of the Maryland General Assembly unfolds, a familiar tension has resurfaced in Annapolis: Who should control local tax policy — the state, or the counties themselves?

Last week, the Maryland Association of Counties (MACo) made its position clear. In testimony highlighted on Conduit Street, counties argued that they need flexible local tax tools — not state-mandated revenue decisions handed down from Annapolis.

At issue is legislation such as HB 547, which would expand certain tax deductions statewide. While supporters frame these bills as economic relief, counties see something else: a steady erosion of local fiscal control.

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The Core Argument: Local Option vs. State Mandate

MACo’s position is straightforward.

If the state believes a tax incentive is beneficial, it should make that incentive optional for counties — not compulsory.

Under current proposals, Annapolis would expand deductions or exemptions that directly reduce county revenue, without giving local governments a meaningful choice. Counties argue that this shifts costs downward while political credit remains at the state level.

In plain English:
The state cuts taxes. Counties absorb the revenue hit.

That’s not partnership — that’s policy by override.

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Counties Carry the Financial Load

Counties fund the services Marylanders rely on every day:

• Public schools
• Sheriff’s offices and public safety
• Local roads and infrastructure
• Health and social services

Unlike the federal government, counties cannot print money. Unlike the state, they often have fewer revenue levers to adjust.

When Annapolis mandates a tax change that reduces local revenue, counties must either:

• Cut services
• Raise other taxes or fees
• Delay capital projects
• Dip into reserves

None of those options are painless.

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Why Flexibility Matters

Maryland is not a monolith.

What makes sense in:

• Montgomery County
• Garrett County
• Worcester County
• Baltimore County

may not make sense elsewhere.

Agricultural tax incentives might be critical in one county and fiscally negligible in another. Urban jurisdictions may face completely different budgetary pressures than rural ones.

A local option framework allows counties to evaluate:

• Economic benefit
• Budget impact
• Community priorities

That is responsive government.

A one-size-fits-all mandate from Annapolis is not.

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The Accountability Question

There is also a deeper principle at stake: local accountability.

County commissioners and county councils are elected by local voters. If they adopt a tax incentive that backfires, voters can hold them accountable.

But when the state imposes the decision, local officials are left explaining budget shortfalls caused by laws they did not pass.

That weakens democratic accountability — and fuels voter frustration.

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This Is Not Anti-Tax Relief

Counties are not opposing economic growth. Nor are they rejecting tax incentives outright.

Their position is more restrained — and more conservative in the truest sense of the word:

Let local governments decide what works locally.

That approach protects fiscal responsibility while still allowing innovation.

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The Bigger Pattern in Annapolis

This debate fits a broader trend in Maryland governance.

Over the past decade, Annapolis has increasingly centralized authority — from education mandates to environmental regulations to budgetary requirements — often without fully funding the consequences.

When the state dictates policy but counties write the checks, tensions are inevitable.

If Maryland leaders truly value partnership with local governments, they should trust them with the discretion to govern.

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The Bottom Line

Maryland’s counties are not asking for more money.
They are asking for more flexibility.

In a state as economically and geographically diverse as Maryland, that request is not radical — it’s rational.

Annapolis should remember:
Local governments are closest to the people.

If the goal is responsive, accountable governance, the solution is simple —
Give counties the tools. Don’t tie their hands.

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