FY2021 Adopted Budget

FY2021 Adopted Budget County Tax Rates Income Tax Frederick Co XQW\¶V LQFRPH WD[ UDWH IRU )<

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taxable income. Individuals who maintain legal residence in Maryland or who earn or receive income from Maryland sources must pay Maryland income tax. The six taxpayer classifications are single, married filing jointly, married filing separately, head of household, qualifying widow(er) with dependent child, and dependent taxpayer. Income earned by an estate of a deceased person is subject to income tax in the same manner as individuals.

7KH WD[ EDVH LV WKH WD[SD\HU¶V IHGHUDO DGMXVWHG JURVV LQFRPH DGMXVWHG E\ 0DU\ODQG additions and subtractions, deductions and exemptions yielding Maryland Taxable ,QFRPH 7KH &RXQW\¶V WD[ UDWH LV DSSOLHG to Maryland Taxable Income. Annual tax returns from individuals are due to the State Comptroller by April 15 of the year following the taxable year. Individuals who file income taxes electronically and pay the amount due electronically can pay by April 30. If the taxpayer uses a fiscal year basis, then the returns are due on or before the

Federal Adjusted Gross Income +/- modifications to income Maryland Adjusted Gross Income - deductions & exemptions Maryland Taxable Income x 2.96% County Tax Rate Frederick County Income Tax

fifteenth day of the fourth month following the end of the fiscal year. A quarterly declaration is due if the taxpayer expects to be under withheld by more than one-half of the federal threshold amount. Such taxpayers must file an estimated return and make quarterly payments on or before April 15, June 15, September 15, and January 15 of the next year. Employers are required to withhold taxes (based on withholding tables) from the wages of employees. Employers remit withholding taxes to the Comptroller monthly, quarterly, annually, seasonally, or as accumulated (for the largest employers) based on the amount of taxes withheld. Each incorporated municipality shares in the C RXQW\¶V LQFRPH WD[ UHYHQXHV E\ UHFHLYLQJ : a) WKH JUHDWHU RI RI WKH FRXQW\ LQFRPH WD[ OLDELOLW\ RI WKH PXQLFLSDOLW\¶V UHVLGHQWV , or b) RI WKH 0DU\ODQG WD[DEOH LQFRPH RI WKH PXQLFLSDOLW\¶V residents Recordation Tax Recordation is an excise tax imposed for the privilege of recording an instrument in the land records. Frederick Co XQW\¶V UHFRUGDWLRQ WD[ UDWH IRU )< is $6/$500 of consideration and changes to $7/$500 of consideration on October 1, 2020. The majority of the tax is not dedicated and is budgeted in the General Fund. The remaining amount is dedicated to school construction, acquisition and development of parkland, preserving agricultural lands, and to assist with affordable housing. The dedicated funds are recorded and tracked in various special revenue funds. Hotel Rental Tax Hotel Rental is an excise tax on hotel charges for sleeping accommodations for a period not exceeding 90 consecutive days. Frederick Co XQW\¶V KRWHO UHQWDO WD[ UDWH IRU )< is 5.0%. Per section 1-8-166 of the County Code after administrative costs, the remainder is given to the Tourism Council. This tax is recorded and tracked in the Hotel Room Rental Fund. Other taxes charged in Frederick County include: x Local ± MD 911 Fee (recorded in the General Fund) x MD Security Interest Filing Fee (recorded in the General Fund) Note: Agriculture Transfer Tax is a pass-thru from the State and is not a tax levied by the County (recorded in the Agricultural Preservation Fund)

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