Bohanan Decries GOP Property Tax Hike for Rescue Services

By Kenneth C. Rossignol

ST. MARY’S TODAY

LEONARDTOWN --- Tax hikes are tax hikes, says Del. John Bohanan (D. Lexington Park) and the conservative Democrat who represents the Lexington Park and southern half of St. Mary’s County in the Maryland General Assembly is as tenacious at fighting tax hikes as his brother-in-law, Senator Roy Dyson (D. St. Mary’s, Calvert).

Bohanan and the St. Mary’s Commissioners dueled at last week’s special public hearing on the issue of adding a new fire and rescue tax.

Commissioner Tommy McKay (R. Hollywood) is adamant that the county is not raising taxes but is simply earmarking a portion of the existing real estate tax for fire and rescue services.

Previously, only fire departments were supported by a specific real estate tax, with some departments such as Bay District in Lexington Park, being supported by the same tax rate as 30 years ago, resulting in the firefighters swimming in tax dollars and spending money on new trucks and equipment without any accountability, while rescue squads in the county struggle for funds.

Bohanan says that the county-commissioner requested change in legislation will allow a new tax to be created, with once the nose of the camel is under the tent, the tax will be raised on California and Lexington Park property owners for rescue services which benefit the entire county.

"We have a huge rush of people into Lexington Park every day that come here from around the county and from around the nation," said Bohanan. "The Lexington Park rescue squad even provides emergency services on the Naval Air Station and they are the busiest squad in the county. It just doesn’t make sense for the county commissioners to not support this volunteer effort from the general fund instead of funding it on the backs of property owners in Lexington Park and the rest of the Eighth District."

Bohanan is sticking to his guns and points to the statistics provided by the commissioner’s own finance director, Elaine Kramer, that funds now paid from the general fund would be switched to the new tax added to real estate tax bills.

McKay says that the commissioners are simply trying to provide for rescue services for the first time in a fund that is designated only for them as they spend all their time running calls and have little time for having bake sales to support important medical emergency calls.

Bohanan’s point is that Lexington Park’s rescue squad provides services to all those who are in the general area and shows why the county should be supporting it from the general fund, not making local property owners bear the burden by themselves.

"People come to Lexington Park from all over the county to shop and work and need rescue services, this is exactly the one of the chief ways the county can act to support the Navy with an essential local service and instead, the board is coming up with a new tax while they pose and posture about holding the line on taxes, it’s just bunk," said Bohanan.

The commissioners are trying to plan for the future of the volunteer rescue squads and give them the support they need to operate and exist, says McKay, as more people come to the area and demand services, without participating in the volunteer departments.

"There is nothing wrong with the public supporting fire and rescue services, they do it all the time," said Bohanan, "but it’s a matter of fairness, where you have a service which benefits all the county citizens, you should spread the cost of that service over the entire county."

"I said I didn’t understand the commissioner’s proposal and McKay said that they would walk me through it, and they did, and then I said at the hearing, I do understand it, it’s a tax hike, you can call it what you want, but when you create a tax which didn’t exist before, that is raising taxes," said Bohanan.

Bohanan said that the shift from the general fund to the individual tax bills would include the medic units, known as Advanced Life Support; operating allocations currently being made to fire & rescue services; the Emergency Service Committee; LOSAP payments for these entities; and the annual debt service for the revolving loan fund.

"All of the payments that would be shifted from County general revenues add up to a total of $1,420,943 for FY ’04, which represents equivalent of .0228 cents out of every $1 of property tax," said Bohanan.

"The allocations for rescue squads would be tied to the assessable base in each District and should a Rescue Squad choose to impose a tax as a method of funding, the maximum rate would be 2 cents. In other words, if they run short of funds, the County will give no additional funds – the Squad would have to turn to the people living in its district and trigger up to a 2 cent additional tax burden on property owners to pay for shortfalls," explained Bohanan.

"Lexington Park and the 7^th District already told the Commissioners, they would likely be in asking for more due to a shortage of operating funds," said Bohanan. "So within a few years, at least 2 departments would likely "impose" the additional property tax on residents in the areas they serve to cover shortfalls. What do you call that? – a property tax increase".

"The key fact is, you are relieving the general revenue fund of $1,420,943 of outlays and shifting it to an expanded version of an existing tax," said Bohanan. "That means that it is an immediate property tax hike of $1.4 milllion unless they reduce the regular property tax."

"Each 1 cent alteration (addition or reduction) of the County property tax is equal to $623,132, based on the current assessable base," said Bohanan. "So, in the end, this new tax has the potential to increase taxes to County property owners by $3.365 million if the regular property tax rate is not decreased and if the full additional 2.4 cents (2 cents for Rescue Squads & .4 cents for "ALS, ESC expanded funding") is imposed in every County District."

Bohanan says the Board is playing with smoke and mirrors.

"The Commissioners will argue that they would reduce the existing property tax rate to adjust it for the new expanded Fire & Rescue tax – just trust ‘em!" said Bohanan.

"I say that a if it looks like a tax, smells like a tax and tastes like a tax, it’s a tax and it’s unfair to tax a small group of people for what all benefit from."